BNL - Blue Star Helium

[dubiousinfo]

I’m surprised AZZ hasn’t announced some sought of capital raising yet and suspect one might be in the wings

AZZ currently has around 9.3mil convertible notes issued at a face value of $2.00 each for a total amount of $18.7mil. The notes are set for redemption in October 2013, however, there is a provision for the holders of the notes to request redemption of the full amount on each reset date with the next date being October 2009. Potentially, all the holders of the notes could request redemption in October, leaving AZZ to come up with $18.7mil. While it is unlikely that all the holders will request redemption, I suspect a good many will.

AZZ does have a facility to draw down up to $20mil in $300,000 lots every 10 trading days, but only when its share price is above $0.2132. Whenever its share price is below this figure it is unable to draw on the funds. Realistically, to get the $20mil it would need to keep its share price above $0.2132 for over 600 trading days or 2.5 years.

Cruikshank has done a great job since taking over though it is yet to be seen how he intends to deal with the issue of the notes

 

[gerkin02]

71% of the notes are held by 3 entities.

These entities are also top 20 shareholders.

The coversion rate (eg 1 for 1,2 for 1)can be altered at the reset date as well as the interest rate.

Management have been working on this issue for a considerable period of time.

All the best.

 

[dubiousinfo]

While the convertion rate can be altered, it is currently limited to a maximum of 1 for 4. It would have to be put to a shareholder vote to increase it higher.

Agree that they have been working on the issue (buying back approx 1.1mil at around half price) but now would seem to be the time put something in place with the share price where it currently sits and the current oil price.

If the market tanks again things could get difficult.

 

[seasprite]

AZZ have been forthcoming with that information , and has been available in every cashflow report I have read. What I like to know is what is this "agreed sum" for AZZ's lease sale to Petrohawk. ?????

PS Director Richard Elliot is a director and shareholder of MetroWest Investment Super Fund

 

[seasprite]

yellow rose operational update see http://www.asx.com.au/asxpdf/20090525/pdf/31hr6kp9v9d7xv.pdf . Eagle Ford shale from mudlogs so far in excess of 125 ft .

 

[seasprite]

well my threshhold has been met and are taking profits now ,and I still think there is plenty of upside to this one , goodluck all to holders.

 

[pilots]

Went to the AGM, should be 50c in a week, yellow rose looks good.
If yellow rose comes off they have twenty wells planed.

 

[fureien]

hmm its taking a beating today, anyone got anything to suggest why the 11% drop?
seems a bit random for me

 

[Agentm]

my view on azz is that the well is just a test well, a pilot hole, so there will be extensive testing and sampling done on it. there is no permit for a lateral on it,that would cost a small fortune, as would a fracc. the last announcement announced an end to drilling.

its an interesting share to have speculated on, with its very rapid sp movements, imho many would be taking profit realising no further works would be done for some time.

the real deal imho comes should they choose to do a horizontal, then you would to be reading their progress reports for indications of hydrocarbons.. followed by a workover and a fracc crew to finish off the well and do a production test..

this share will allow for many of these speculation driven spikes throughout. so if you can enter and exit with the volumes its a great share to make some good gains..

i am sure if the operator puts in a new permit for a lateral then things will change, but until they do its a hard for me to see this share just keep on climbing.

can anyone tell me if azz will fund this well or is it free carried?

also what in laymans terms is the deal with petrohawk..

 

[pilots]

At the AGM James said that this well could be on line under one month, they all ready have the program for TWENTY wells if this comes in. James all so said that this year AZZ had a after tax profit of over $600,000. this better than all the loss they have had. As to the SP moving fast up and down, I think that you will find that the top 4 holders hold a lot of shares, so if it wants to rum you won't find a lot to play with, thats my thinking on it. This was the first AGM that I come away from and was happy, bought shares the next day.

 

[aramz]

Pilots, Agentm,

If the wireline logging results are good could the share price rally again in the short term or would it need to announce that they will be carrying out a horizontal for it to run considerably? I'm also unsure of how long wireline loggin testing takes.

Twenty Wells planned if this comes in! That's great news.

Pilots you said that this well could be online in under a month. When you say online do you mean they would have completed a horizontal and started producing?

 

[pilots]

Pilots, Agentm,

If the wireline logging results are good could the share price rally again in the short term or would it need to announce that they will be carrying out a horizontal for it to run considerably? I'm also unsure of how long wireline loggin testing takes.

Twenty Wells planned if this comes in! That's great news.

Pilots you said that this well could be online in under a month. When you say online do you mean they would have completed a horizontal and started producing?

I cant see much happening with the SP until they tell us the flow rates, logging two days at the most, they won't do horizontal, the GAS will go in to the pipe line that is next to the lease, should see cash flow under three weeks from now. What will drive the SP up is when each of the next wells come on line, the big holders that hold AZZ have done for a long time, they have watched it go from over the $1.00 to 5c, they toped up big time, I think you will find no more big jumps up now, just wait and watch what happens each a new well comes on line.

 

[aramz]

Thanks pilots. Also thanks for the information above regarding the agm. Do you anticipate they will move quickly with the other wells if this one comes up with goods? Will they use the same drill rig as this test well and get them going one by one? Here's hoping there is some good news soon. It's always a rollercoaster for me as I don't know alot about the drilling game and the volatility of these low volume stocks catches me off guard.

 

[pilots]

Thanks pilots. Also thanks for the information above regarding the agm. Do you anticipate they will move quickly with the other wells if this one comes up with goods? Will they use the same drill rig as this test well and get them going one by one? Here's hoping there is some good news soon. It's always a rollercoaster for me as I don't know alot about the drilling game and the volatility of these low volume stocks catches me off guard.

If this well comes in I think you will find that they will have more than one rig working, as to the rig they are using now I don't know, it could have other contracts to go to. The good side of this is that the USA have plenty of rigs stacked now. AZZ need the money more so than you need the SP to go up, trust me, JC has well under control.

 

[pilots]

Well at long last AZZ have done it, sorry that Metro is not here to see it, both zones bigger than they hoped for, we have our 50c, BUT what will it be in a years time??

 

[Agentm]

just curious how you get the .50 valuation pilots? if i even mentioned a price prediction in adi i would be roasted!!

very interesting release from john cruikshank

i The results from the Frances Dilworth No. 2 lead Antares to expect similar achievable results throughout Yellow Rose. The Edwards limestone has a resource potential of between 40 and 80 Bcf. Assuming a per well ultimate recovery of 4 Bcf, a completed well cost of $2.5MM USD and a gas price of $5.00 USD/Mcf throughout the life of the project, the following table summarizes the undiscounted per share value of Antares’ 75% working interest in the Edwards limestone resource.

Similarly, the Eagle Ford shale has the expectation of delivering substantial shareholder value. The Eagle Ford represents a resource potential of over 400 Bcfe and over 80 well locations. Assuming a per well ultimate recovery of 5.5 Bcfe, a completed well cost of $5.0MM USD and a gas price of $5.00
USD/Mcfe throughout the entirety of the project, the undiscounted per share value of Antares' 8,200 acre, 50% working interest in the Eagle Ford shale is shown in the following table.

i hope the investors take note and actually believe the eagleford is a commercial zone and that azz achieves some value for the discovery, so far we have seen the eagleford shale get a very muted an unwelcoming response from investors in the O&G smallcap sector..

 

[pilots]

just curious how you get the .50 valuation pilots? if i even mentioned a price prediction in adi i would be roasted!!

very interesting release from john cruikshank

i The results from the Frances Dilworth No. 2 lead Antares to expect similar achievable results throughout Yellow Rose. The Edwards limestone has a resource potential of between 40 and 80 Bcf. Assuming a per well ultimate recovery of 4 Bcf, a completed well cost of $2.5MM USD and a gas price of $5.00 USD/Mcf throughout the life of the project, the following table summarizes the undiscounted per share value of Antares’ 75% working interest in the Edwards limestone resource.

Similarly, the Eagle Ford shale has the expectation of delivering substantial shareholder value. The Eagle Ford represents a resource potential of over 400 Bcfe and over 80 well locations. Assuming a per well ultimate recovery of 5.5 Bcfe, a completed well cost of $5.0MM USD and a gas price of $5.00
USD/Mcfe throughout the entirety of the project, the undiscounted per share value of Antares' 8,200 acre, 50% working interest in the Eagle Ford shale is shown in the following table.

i hope the investors take note and actually believe the eagleford is a commercial zone and that azz achieves some value for the discovery, so far we have seen the eagleford shale get a very muted an unwelcoming response from investors in the O&G smallcap sector..

It is James Cruikshank, not John or Jim, always JAMES. 50C is what it should make this week, this is a good result as the day traders won't touch it, I believe it will be the big institutions who will want AZZ for a long term hold, it is going to take at least a year to get the field rolling. This field looks like a very long life. This has been a long time coming but well worth the wait.

 

[fureien]

the day traders are already touching it.


*edit*

i take that back. somebody just made a bid from 35 cents and took out all the sellers up to 37 cents....

 

[pilots]

James just spent 82K on shares, thats a good to see. He all ready holds loads, what I am waiting for the infield drilling to start, now thats when you will see the SP move. This is a long term hold.

 

[Sean K]

Pilots please deliver on the FA for the 50c by the end of the week.

Otherwise, you're just ramping.

Cheers,
kennas