QGC - Queenland Gas Company

Re: Queenland Gas (QGC)

this share has been providing "top up" levels this week. Nearly down to the last share plan price of 37 cents. A lot has happenned since then - Sentient on board - good price to gather - only in my opinion - not advice to anyone!!

Re: Queenland Gas (QGC)

Moving north nicely this morning after the following announcement:

New mini-pilot heralds the start of development drilling at Berwyndale South

Queensland Gas Company (QGC) as Operator for the Berwyndale South Joint Venture, has commenced the field development drilling of the wells required to deliver the gas required for the CS Energy contract. QGC is contracted to supply CS Energy with4 petajoules per year for 10 years, and it is hoped to be supplying the first gas by April 2006.

The development wells will include an initial mini-pilot designed to prove up the gas reserves within the underlying Taroom coal seams. To this point, the certified proved and probable (2P) gas reserves within Berwyndale South are confined to coal seam gas from the Juandah coal seams, and take no account of gas from the underlying Taroom coal seams. The Lauren #3 well, located some 15km to the south-east, was a Taroom-only well that flowed at a 7 day average of 770,000 cubic feet per day – a very commercial rate. It is believed that there are good prospects of this style and result being replicated at Berwyndale South.

QGC’s Managing Director, Richard Cottee, pointed out that if economic quantities of the gas required at Berwyndale South could be recovered from the underlying Taroom coals, fewer development holes would be required for the Gas field development and capital costs would be substantially reduced.
“Because of the impact on the profitability of the project, it is important to evaluate the Taroom gas option through this mini-pilot before embedding the current development design into the overall development”, Mr Cottee said. “If coal seam gas from both the Juandah and the Taroom coals could be tapped from single wells, the recoverable gas per well would be increased, as well as boosting the 2P reserve base at Berwyndale South. The result would be a significant improvement in the whole-of-life economics of the Berwyndale South development” Mr Cottee said.

Drilling will commence today on the “Windibri” the property owned by the Berwyndale South Joint Venturers (see attached map). This property will also be the site of the Gas field gathering station and compressor unit.

The Berwyndale South Gas field lies within PL201 in which QGC has a 90% interest and The Sentient Group 10%. Lauren #3 lies within the adjoining ATP 620P held jointly by QGC (59.375%) and Pangaea Oil & Gas Pty Ltd (40.625%).

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Re: Queenland Gas (QGC)

Is QGC beginning to wake up?

Next step would appear to be a convincing break above resistance at 45c on decent volume. One worth keeping an eye on.

Re: Queenland Gas (QGC)

Or it could just be a short ride to nowhere, like the previous rise back in July.

Nice new avatar you got there Joe. I'm scared already

GP

Re: Queenland Gas (QGC)

GreatPig said:

Nice new avatar you got there Joe. I'm scared already

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GP, I'm gonna make you an offer you can't refuse.

Re QGC: Seems to be showing some strength this morning on the back of the release of its annual report. Will be interesting to see if it can continue the trend. 50c would appear to be the next significant barrier.

Re: Queenland Gas (QGC)

Hey, how come your avatar is bigger???

I'm sure when I did some new ones recently, the limit was 80 x 80. Now I see it's 100 x 100.

You trying to stay ahead of the Jones's here?

Cheers,
GP

Re: Queenland Gas (QGC)

GreatPig said:

Hey, how come your avatar is bigger???

I'm sure when I did some new ones recently, the limit was 80 x 80. Now I see it's 100 x 100.

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I noticed it was 80x80 last night when I added the new avatar. I always thought it was 100x100 for some reason.

So I changed it.

Re: Queenland Gas (QGC)

QGC has done a runner on me! Just before the stock tipping comp opens, it bolts! Just check out the director buying, one guy buys in Sept and only announces yesterday, another bought last week and again annct yesterday, wish they'd make them announce it within 24hrs- hope I've read the dates correctly. Now straight after the news is released to the market it's away (well, climbed before that so someone knew).

Re: Queenland Gas (QGC)

RichKid said:

QGC has done a runner on me!

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I know what you mean.

I almost bought in around 50 cents, when the rounded bottom looked complete. However, I'd recently had so many rounded bottoms fail on me, that I withdrew the order I had in before it got filled and decided to stay out.

Which of course pretty much assured its success...

Cheers,
GP

Re: Queenland Gas (QGC)

GreatPig said:

I know what you mean.

I almost bought in around 50 cents, when the rounded bottom looked complete. However, I'd recently had so many rounded bottoms fail on me, that I withdrew the order I had in before it got filled and decided to stay out.

Which of course pretty much assured its success...

Cheers,
GP

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Another director buy annct was released today, again purchases from last week- I wonder what the rules say about continuous disclosure of dir tnxns in their co, I really reckon it ought to be disclosure in 24hrs so everyone is on a level playing field, it's not too much to ask when you can just lodge things electronically with the ASX imo. If I knew they'd bought I would have entered straightaway.

Hey GP,
do you want to do some rounding bottom analysis in the rounding bottoms thread? Just post the charts that failed and we'll do a post mortem if you're interested and try to pick the tell tale signs of the better prospects (or danger signals). I know it'll be in hindsight but better than nothing. For those new to saucers and rounding bottoms see the rounding bottoms thread for info on criteria.
It appears that the safest bets are on stocks which are identical to the classical pattern (very rare imo).

Re: Queenland Gas (QGC)

RichKid said:

Just post the charts that failed and we'll do a post mortem if you're interested and try to pick the tell tale signs of the better prospects

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I'll post a couple in that thread that I've found again.

Some were probably more my fault for selling too early on the first sign of weakness, but of the ones I did buy into recently, TAM was the only decent one I stuck with. I sold that one in August, just before the fall then, and didn't buy back into the subsequent rise.

Cheers,
GP

Re: Queenland Gas (QGC)

GreatPig said:

I'll post a couple in that thread that I've found again.

Some were probably more my fault for selling too early on the first sign of weakness, but of the ones I did buy into recently, TAM was the only decent one I stuck with. I sold that one in August, just before the fall then, and didn't buy back into the subsequent rise.

Cheers,
GP

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Thanks GP, I've posted my stuff in the saucer thread. Glad you've made some $$$ out of these patterns as I think they're worth it.

Re: Queenland Gas (QGC)

More director purchases!! What's going on here - the directors (mainly Elphinstone) are buying this thing hand over fist?????

malachii

WARNING: I OWN SHARES IN THIS COMPANY - GOING ON PAST HISTORY THIS IS PROBABLY A BAD SIGN!

Re: Queenland Gas (QGC)

malachii said:

More director purchases!! What's going on here - the directors (mainly Elphinstone) are buying this thing hand over fist?????

malachii

WARNING: I OWN SHARES IN THIS COMPANY - GOING ON PAST HISTORY THIS IS PROBABLY A BAD SIGN!

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Just be careful with the dates, quite a few anncts are old news, one was particularly late in being announced. The sp has moved a fair bit since then. Let's see how it goes, ready for another run?

Re: Queenland Gas (QGC)

QGC today came close to equaling its last high. Around 11 Feb 2005 QGC reached $0-74. From memory there was a special public share issue at that time. Today it closed $0-735. The chart has been consolidating in recent times and the price movement today is on the back of a market sensitive ASX announcement. In short QGC is almost ready to turn its gas exploration efforts into a commercial reality, ahead of contractual deadlines.

The following is from the QGC website and is part of the ASX announcement released today.

Monthly Status Report January 2006 17-Jan-2006

Overall Project status

QGC’s Berwyndale South Project is on target to supply CS Energy with coal seam gas several months ahead of the contractual deadline of 31 July 2006. The project is on budget and very encouraging gas flows have been recorded from new development wells in recent weeks. One of the new wells (# 18) produced more than 2 million cubic feet of gas per day (mmcfd) without the need for pumping.

To download entire Monthly Status Report (pdf) click here

Top of page

For further information go to:
http://www.qgc.com.au/news/20060117-5888.cfm

The chart for the year to date is attached.

Queensland Gas Company broke through the 80 cent barrier today to close at 83 cents. This is a percentage change of 6.41%. The price increase is on the back of an ASX announcement that QGC is making a bid for 50% of Sydney Gas Ltd (SGL) and another announcement regarding strong flows from another well. With commercial agreements about to come on line, this may be an interesting one to watch. Will it break the 90 cent barrier and push towards the $1-00 mark? It has two twin peaks in recent times and whilst it has been nudging the overbought line, it has never crossed into that territory. Charts are attached.

WARNING: I OWN SHARES IN THIS COMPANY - DO YOUR OWN RISK ASSESSMENT - I HAVE A VERY BIASED INTEREST IN THIS STOCK!!!!!

This one has been a little money spinner (I got in at the mid 20 cents price). I think a lot of the build up is getting ready for the first gas deliveries in April. Management has already shown they are pretty capable and are delivering early and under budget (unheard of!!). They have also promised not to raise anymore money for the current QLD projects so the market is pretty happy with them. I think the lastest dip was caused because the market wasn't expecting them to raise any funds at all in the short term - and then they sprung the raising for taking over SGL (As the CEO said - he only promised not to raise funds for the QLD projects - he didn't mention any further takeovers). The market seems to have realized the benefits of the takeover (SGL's biggest problem is lousy management and like I said - the market seems to like QGC's) so it bounced back pretty quickly.

All round good news for this one - I personally think we will nudge the $1 mark before the gas deliveries in April and I have been buying in anticipation.

BUT like I said - I'm VERY biased towards this stock so please do your own research!!!!!!!

malachii

I tend to agree with your view this is a long term hold for me also looking forward to the first dividend payment and I have been topping up on weakness :

cheers laurie

I agree with the last 2 posts. I got into this stock when it was $0-48 because my own research suggested it would go well over the next 12-18 months as things became more commercially viable. I did that last March and it has proven my research to be correct. It really highlights the need to do your own research and make up your own mind.

Interesting article in todays Australian on the CEO of QGC and the takeover of SGL.

malachii


THE AUSTRALIAN
BUSINESS
Gas exec is desperate and dateless
Cottee awaits a response to his bid, writes Glenda Korporaal

February 13, 2006

QUEENSLAND Gas chief executive Richard Cottee says he feels a little like his younger days at school dances, waiting to get a girl to agree to dance with him.

Having launched an unsolicited bid for Sydney Gas in late January, Cottee is awaiting a response from the company that is still coping with last year's senior management changes and working out how to repay $30 million in convertible notes due in coming months.

The rapidly growing Queensland Gas is expected to lodge its bidder's statement with the Australian Securities and Investments Commission tomorrow.

If Cottee pulls off the surprise 2-for-1 script bid, he will be running a big player in the emerging market for coal seam methane gas in Australia.

Cottee has grand plans for the combined company to be able to supply both the gas and the electricity markets in southeast Queensland and NSW with strong links to power stations in southeast Queensland and NSW's Hunter Valley.

But, so far, Sydney Gas (which has seen off two chief executives and two chairmen in the past year, including former Olympics minister Michael Knight) has made no comment on the bid.

Sydney Gas executive director Stephen Kwik says the company is awaiting the bidder's statement before making a comment.

"I have been trying to ring (Sydney Gas chairman) Michael Norster to meet with him but he hasn't returned my calls," Cottee says. Sydney Gas currently has no chief executive, after chief executive and chairman Knight left in tumultuous circumstances late last year.

Knight called for an ASIC investigation into whether the company had changed hands without investors receiving a takeover bid.

The investigation was completed last month, with ASIC deciding to take no action.

Cottee spent last week in Sydney pitching to Sydney Gas shareholders, including Mulpha International, a company controlled by Lee Seng-Huang, son of Lee Ming Tee, which holds just under 10 per cent.

Mulpha insists that it has nothing to do with the controversial Lee Ming Tee, who was jailed for a year in November 2004 in Hong Kong for offences connected with his Allied Group of companies, after a long-running legal battle.

The outgoing Cottee, a fluent Japanese speaker who describes himself as a "reformed lawyer", is making a bid for a company once several times the size of Queensland Gas.

But a combination of Sydney Gas's problems and Queensland Gas's successes have put him in striking distance of a company he has coveted for some years.

In 2002, Cottee left the job as chief executive of the Queensland government-owned power company CS Energy, which has assets of almost $2 billion, to join the much smaller publicly listed Queensland Gas.

While the coal seam gas industry in Australia is still in its infancy, it gave the energetic Cottee, whose career includes stints with gas producer Santos and coal producer Oakbridge, the chance to get back into a more entrepreneurial world.

Cottee points out that he has taken Queensland Gas from a market capitalisation of about $15 million in 2002 to its current level of about $300 million.

He says his job when he arrived at Queensland Gas was to "get its house in order" -- including proving up its reserves and securing contracts for its gas -- but he is now in a position where he can start to look further afield.

Cottee says he has already teed up three major Queensland Gas shareholders to take $30 million worth of stock in the combined company to pay out the $30 million in convertible notes owned by Sydney Gas.

Cottee says he wants to replicate what he has done with Queensland Gas, where he has proved up reserves in the Surat Basin and has been involved with the establishment of a gas-fired power station at Chinchilla which can take its gas.

He sees a similar opportunity with Sydney Gas's interests in the Hunter Valley.

Having reserves and links with power stations in both the Surat Basin and the Hunter Valley, he says, would give the combined group access to supply at both ends of the NSW-Queensland electricity interconnector.

It could choose either to sell its gas directly to consumers or to power stations to meet electricity demand in either state.

The two companies are in very different situations. Queensland Gas has significantly boosted its proven reserves but is still looking for supply contracts.

It has proven and probable reserves of some 336 petajoules in Queensland -- more than 10 times the reserves of Sydney Gas in the Sydney Basin areas, which include the Hunter Valley and Camden.

Queensland Gas has 10-year minimum supply contracts of some 11.6 petajoules a year, with fertiliser company Incitec Pivot, Braemar Power and Cottee's former employer, CS Energy.

Sydney Gas has a larger contract with AGL, one of Australia's biggest energy retailers, to supply gas from its Camden project.

"Sydney Gas has the contracts but it doesn't have the proven reserves," Cottee says. "(If we win the bid) we will first and foremost help (Sydney Gas) prove up its reserves (at Camden) to satisfy the present contract."

Cottee, who learnt Japanese as an exchange student at high school, insists that he is "old and grey and boring", unlike some of the colourful characters involved in the small cap stocks in the Australian mining industry.

But others see him as a robust, outgoing personality. His PR advisers have suggested he tone things down for the more sedate Sydney institutional market.

Wilson HTM energy analyst Andrew Pedler says Cottee is regarded as a successful and energetic leader, having boosted Queensland Gas's business by bringing in a team of professionals in the industry whose skills are bearing fruit.

Cottee points out that he has come a long way since those awkward dances in his school days. He is now happily married with six children -- all of them, he points out cheerfully, with the same wife.