BUY - Bounty Oil

[SUNYA2006]

MMR is undervalued imo. Keep your eye on Grandbridge too(GBA). GBA holds 7 million MMR plus 7million MMRO.

Hi, Lee:
Can you explain further if GBA is hoiding 7 millions units of MMR or investing 7 millions$ in MMR? You know there is huge difference between them. In annual report of GBA, it said there is 7 millions$ conditional funding in MMR. But GBA only has 2.5 millions net assest currently which makes me confusion.

 

[LeeTV]

Hi, Lee:
Can you explain further if GBA is hoiding 7 millions units of MMR or investing 7 millions$ in MMR? You know there is huge difference between them. In annual report of GBA, it said there is 7 millions$ conditional funding in MMR. But GBA only has 2.5 millions net assest currently which makes me confusion.

Grandbridge(GBA) are the 2nd largest holders of MMR and MMRO:

Grandbridge Ltd 9,747,362(13.99%) MMR
Grandbridge Ltd 7,533,228(13.99%) MMRO

Mr David L Breeze is a director of both MMR and GBA

 

[Garpal Gumnut]

I don't know anything about this stock but technically in retrospect it has been a dream run for any chartist who got on board in early to mid July.

It broke upwards out of a trading range at .032.

A useful stop loss level was available at 0.025.

As it moved up the stop was successively raised to 0.042 and 0.066.

On 12th Aug one would have had to make a decision whether to close out as the stop was briefly breached and a nowhere day continued.

Those who stayed are grinning.

Its now at 0.12, a 400% change in 2 weeks for some.

A fibonnaci retracement indicates where support and possible stop losses may be for this nugget perhaps at the 50% retracement 0.095, unless it truly is for blue sky.

A good trading stock.

gg

 

[Donga]

GG - As good as BUY looks to you from a chart perpective, strongly suggest you consider two realities much covered in another forum where they been going nuts over BUY and a little more sensibly regarding MMR, being:

1. On the maths relating to BUYs 15% interest in PEP11 vs MMR's interest as well as the number of issued shares in each, either BUY is overpriced or MMR is undervalued, hopefully the latter.

2. Profits from MMR are not taxable which seems to be under the radar on this forum, possibly because you can't see that with a chart

I'm surprised at the lack of interest in MMR in ASF, maybe the relative low number of posts of the contributors is a factor?

Can't remember if they had internet stock forums when Tasminex and Poseidon where in their prime

 

[LeeTV]

GG - As good as BUY looks to you from a chart perpective, strongly suggest you consider two realities much covered in another forum where they been going nuts over BUY and a little more sensibly regarding MMR, being:

1. On the maths relating to BUYs 15% interest in PEP11 vs MMR's interest as well as the number of issued shares in each, either BUY is overpriced or MMR is undervalued, hopefully the latter.

2. Profits from MMR are not taxable which seems to be under the radar on this forum, possibly because you can't see that with a chart

I'm surprised at the lack of interest in MMR in ASF, maybe the relative low number of posts of the contributors is a factor?

Can't remember if they had internet stock forums when Tasminex and Poseidon where in their prime

Hey Donga. Have another look at the chart he is referring to GBA not BUY guess we should stop chatting about GBA in the BUY thread

 

[YOUNG_TRADER]

I am utterly speechless

A run like BUY from 3c - 15c in a month or so is just one of those once in a blue moon type things

It bodes well for all investors though as its story will draw those who have been away from investing back into the market

I apologize but I'm so blown away I can't comment fundamentally or technically on the stock

 

[Donga]

Hi Lee - I don't think so, as looks like Garpal's numbers and timing refer to BUY. Interesting morning so far. Market is finally beginning to factor in MMR interest in PEP11 vs BUY. Not sure the pooled development fund status (pdf), has sunk in yet and this forum has been very quiet on both stocks .

 

[mobcat]

At the end of the day we have invested in BUY for a diversified forward planned profit and for me this has come to fruition ATM and i am happy to stick to the game plan for the MT to
LT with a sizable slice of the script if it pans out like we are told by the recent Ann's Alls good IMO and we as holders could be part of a major energy supply line to one of the greatest city's in Australia a bit like a extension cord to power Sydney in Green energy for the future from 20ks off shore weather it be fuel to fire desalination plants or gas to cook our dinner or keep us warm in winter or fire up the boilers of industry to employ us if PEP11 one of many of Buy's tenements come's to the point of cash flow we as holders will be part of a major future slice of Australia's Energy future and i feel a tad proud of that and proud to back the potential of BUY with my fold because at the end of the day we are all stuffed going forward if we haven't sovereign ENERGY to supply AUSSIE growth good on BUY for being a link in the chain or at least trying IMO we need more of this to backed by our government and not some Norwegian Bank to profit from the spoils of our birth right in the lucky country that is being sold down to off shore intrests why the hell do we have to go offshore for funding when we have the fold here from so many resources and cash flow from them in our back yard i will never understand , and i do think this problem needs to be addressed by our government in a hurry before we sell the best part of the farm to foregien intrests to profit from when we as Aussies are more than capable of funding our own exploration for our kids and grand kids in such a potentialy huge supply line of GREEN energy :band:dance::dance::dance::dance:

 

[LeeTV]

Hi, Lee:
Can you explain further if GBA is hoiding 7 millions units of MMR or investing 7 millions$ in MMR? You know there is huge difference between them. In annual report of GBA, it said there is 7 millions$ conditional funding in MMR. But GBA only has 2.5 millions net assest currently which makes me confusion.

Hi SUNYA it seems lots of holders have been emailing GBA in regards to this and they posted an announcment yesterday in that regard.


26 August 2009

Companies Announcements Office
Australian Securities Exchange Limited
10th Floor, 20 Bond Street
SYDNEY NSW 2000

Dear Shareholders
Grandbridge Limited would like to clarify its holdings in its investee companies MEC Resources Limited (ASX:MMR) and BioPharmica Limited (ASX:BPH).

Grandbridge Limited holds the following interests:

MEC Resources Limited
Ordinary Shares – 9,747,362 (8.9% of fully issued share capital)
Listed Options – 7,310,522

BioPharmica Limited
Ordinary Shares – 6,778,200 (9.0% of fully issued share capital)

Yours Faithfully,
Deborah Ambrosini
Company Secretary

 

[pcr_bull]

Hi all,

Sorry I am only new to the site... but I been trading BUY for past 14mths, its been quite kind to me, although I been watching the fundamentals and trading technicals. However, until 2mths ago I decided on the fundamentals its a good smart & stable company. One thing that had confused me until very recent (not clear previously) was the relationship between the drilling of a well & the percentage being adjusted with MMR/Advent. I am free riding MMR & holding on BUY for greater gains. Bounty.. how ever small scale it has been in the past years... 'has' been filling barrels regardless of well size & selling! The direction and management is true to line & focus not just filling directors pockets or drilling useless holes for the sake of doing something. I feel fundamentally it worth a buy but this stock is very subject to market releases and tends to run and pull back until the next release. But i interperate it as 'not running too much hype in their stock ' unlike MMR which I feel is well above worth. Diving back into MMR history... the company has done nothing but sideways and down paying managements salary, thats about all. They are only investment company really! I see other potential gains in further wells within Bounty's permits licences not just the PEP11. I'll call it my first million dollar stock, definatly feel on the up side. 'My thoughts only'!

 

[Sean K]

I'll call it my first million dollar stock, definatly feel on the up side. 'My thoughts only'!

Your first 'million dollar stock.' Nice work. You must own about 10m of them. Although that depends entirely on what price you bought in and what you think you will sell them for. Any hints? And why these prices?

 

[pcr_bull]

Kennas... I can only tell you about my experience with this stock 'BUY', I have followed and traded successfully over the past. As I indicated it is very subject to market releases and always takes a bullish run followed by a bear pull back when profit takers trade out. But unlike the past where I have taken profits... I am holding awaiting the outome of the Sydney Basin developments in PEP11 (as many others are) including other interests. If you research the data put out by Bounty on the 21 August 2009: “Presentation by Bounty Oil & Gas NL, CEO : Philip F Kelso – at the 20:20 Investor Series Energy Day Seminar" It will give you a break down of the expected Invested Interest Value upon a "successful well" for PEP11 and how they formulated the Enterprise Value.

Sorry, I might have been bit vague in saying 'my first million dollar stock' I have not sold, or traded out. As I said... knowing this stock, my trading history on it & researching the company "it is my personal belief that the expected value targets reported can be reached if not greater with the help of market psychology." I hope that clears that up! I am not a broker or huge researcher... just a simple trader. My only tip with this stock is: "one minute its the flavour of the week, next 2 months it is not", try not to run with the mob and buy too high limiting your profits, it does pull back when the taste goes off until the next market release. However, expect a few releases by MMR in relation to PEP11 which will move BUY north, if the drilling and well is successful then its happy days for me. I feel there will be some psychological resistance getting above .24 (short term) for a small company like Bounty... if it does break out it'll be purely on market updates followed by a pull back pending completion of PEP11 well. Happy trading

 

[Bluebeard]

What do people reckon of Wakefield prospect, its coming up in the next 2 or so weeks, will BUY go for another run in the lead up? Anyone want to put forward an opinion.

 

[pcr_bull]

Bluebeard... Humm, obviously if it is a positive report this month then I feel it could go for a little run. I would expect it to test the .19 cent mark but it will need to be a very good result, take into account it being September notorious for being a bad month. If it breaks that mark we could see some late buyers pushing it up thinking they have missed the boat. Be prepared for a pull back if it does surge..! This week I have already seen the price creep up with people slowly getting in ready for a positive report and not wanting to be sitting on the sidelines watching. Technically there is not much in it just a bit of guess work to pick it up as cheap as possible, fundamentally definatly on the upside from my research for the next 6mths. That also depends on if your a trader or investor, I hold a bit of both.

Hindsight is a great thing... but we can only make logical and rational decissions based on the fundamental and technical analysis infront of us. Happy trading

 

[arian]

The spud begins tomorrow at Wakefield prospect. Shock to see few sellers came in the last hour and pushed the share price down to .125. Will be very interesting day tomorrow. Just hoping for the day traders to come in like bunch of bulls gone MAD

 

[pcr_bull]

Arian, very true mate... I was watching it for the morning session, but I am not really phased about the buys/sells until they report some real activity results 'post spud'. I dont think just by reporting the spud today is enough for the bulls and sheep to flock just yet... might see a few trickle in moving the price. The market obviously feels that it is needing more facts and figures fundamentally. It will be great viewing though in this quater.

 

[arian]

Hi pcr

Abit disappointed that it couldn't close in green today. Alot of sellers hitting it hard. Yeh you are right about the news on spud aint gonna do much to share price. I guess people want the OIL success news then we will get some serious movement in sp. I seen how BUY moves with any good news. We should get an update sometimes next week and the whole drilling takes about 12 days right? Fingers crossed and hope for the oil.

 

[Putty7]

23-8-09 MMR - CORRECTION OF MEDIA REPORTS ON ADVENT ENERGY SITE SURVEY FOR DRILL TARGETS IN PEP11 OFFSHORE SYDNEY BASIN

MEC Resources (ASX: MMR) advises that media reports regarding the timing of a small-scale
geophysical site survey in PEP 11 as taking place between October 2009 and September 2010 are
inaccurate.
MMR’s investee Advent Energy (“Advent”) is progressing plans to drill in PEP 11, offshore Sydney
Basin, following the lodging of necessary applications for environmental approval.
Advent has made two separate submissions to the Department of Environment and Water,
Heritage and the Arts to carry out a small-scale geophysical site survey in PEP 11 and for approval
to drill one exploration well in the permit.
The survey will take place following the receipt of the required approvals.
The survey will cover two areas of 12 square kilometres each within the potential drilling area to
acquire further geophysical information for potential future exploration drilling. The timing of the
survey is dependent on vessel availability and will take place over about four days at each location.
Following the completion of the survey, the well would be drilled vertically to a depth of 2500m and
wireline logs will be run to determine the presence of any hydrocarbons, and is expected to take 30
days to drill.
Bounty Oil and Gas currently holds a 75% interest in PEP11. Advent Energy holds a 25% working
interest through its wholly owned subsidiary, Asset Energy, and has the right to earn an 85%
interest from Bounty Oil and Gas.


The recent media reports by MMR seems to have dropped the floor from under Bounty with shares being sold under the 10c mark, I do not hold any Bounty shares but am watching for an entry and hoping to see it slide back to around the 5c mark, maybe possible as Gold seems to be showing some interest again and punters may look to get into other shares and get back onto Bounty at a later date when drilling becomes closer, the recent holes they have announced etc dont seem to be helping hold the price, another MMR announcement today...


PEP 11 Offshore Sydney Basin – Update and Direct Hydrocarbon Indicators
MEC Resources (ASX:MMR) is pleased to provide an update to the market on progress to a drill
test of PEP 11 offshore Sydney Basin.
MEC advises that investee company Advent Energy Ltd (“Advent”) :
• is currently in advanced negotiations to secure a drilling rig and has lodged
environmental applications for drilling in preparation for a drill test which is expected
for the first half of the calendar year 2010; and
• has received a report from the Commonwealth Scientific and Industrial Research
Organisation (“CSIRO”) which provides independent reporting of direct hydrocarbon
indicators showing on seismic data in PEP 11;
• The report which details amplitude versus offset (AVO) processing and review of
seismic data acquired in 2004 reports the apparent presence of direct hydrocarbon
indicators (DHI) on seismic lines;
• The DHI have initially been observed on seismic line B4-15 along the main
structural trend and are adjacent to the previously identified Baleen Prospect. They
include high amplitude bright spot reflections, attenuation of high frequencies in
instantaneous frequency plots, and bright spot features in Root Mean Squared
amplitude plots.
These anomalous features are considered prime indicators for the occurrence of hydrocarbons and
Advent believes that these DHI are highly encouraging for the prospectivity of PEP11 in the
offshore Sydney Basin.
A detailed review of the CSIRO report is currently being compiled.


As I said I dont hold but have been watching with Interest to an entry point, anyones thoughts on this would be appreciated.

 

[Donga]

Apologies Putty 7 and others for the length of post which I've also posted on MMR thread– don’t intend to go into this detail again. Will try summarise the case for PEP 11 with particular regard for MMR objectively, and as always pls DYOR. I hold both MMR and BUY.

The MMR board – critical factor for long term investments and don’t expect day traders will be too influential as the stock is tightly held see below. I provide snapshots of two members and suggest punters refer to MEC Resources website for more details on the others.

Chairman Goh Hock was President of Schlumberger Asia - managed their Asian operations including oil field services, outsourcing, financial software and smartcards. Hock was responsible for US$800 million in revenue and more than 2,000 employees spread across 17 countries. In his 25 year career with Schlumberger, Hock held several other field and management responsibilities in the oil and gas industry spanning more than ten countries in Asia, the Middle East and Europe. Hock started as an oil field service engineer in Indonesia in 1980 before moving to Australia where he worked on the rigs in Roma, Bass Strait in and the Northwest Shelf.

Some brief facts on Schlumberger: FY 08 $27.16 billion operating revenue; 79,000 employees of 140 nationalities, operating in approximately 80 countries.

Mr Ding Guiming - Chairman of Advisory Panel was former Head of Exploration for the China National Petroleum Company (CNPC), directed the exploration activity of more than 20 oilfields all over China. CNPC recently announced $US 86 billion revenue. Was President of the Daqing Oilfield, one of the largest and enterprises in China and has 34 years of extensive successful oilfield experience.

Tightly held - According to Commsec MMR market cap today is $47m comprising of 108m shares (not inc options) and the top 20 shareholders account for 40% (MMR latest annual report).

History of PEP 11 – so much material available so pls DYOR however suffice to say there has been lots of research done on the permit area over 20 years from the likes of Ampolex, Santos, CSIRO amongst others. A good place to get a snapshot is presentation released today, see http://www.mecresources.com.au/newsroom/announcements.html and click on Advent Eco presentation. Other Advent presentations earlier this year have much more detail.

Recent progress – number of important milestones:
o May, tender cycle for drilling rig suppliers commenced
o August, Pareto Securities (Oil/gas expertise, Oslo) was engaged as lead broker to source Advent’s capital needs
o Capital raising conducted in September to raise funds for initial PEP 11 expenditure
o Today announced that Dept of Environment approved next step being site survey

Upcoming announcements – broad dates per releases and enquiries
o Recent CSIRO report has been received and awaiting CSIRO approval before summary highlights are released, likely in next week or so.
o Awaiting approval for initial drilling approval. Application was lodged 21 September, see below, Dept Environment questions been answered and now await decision.
o Final negotiations with rig suppliers underway pending Dept Environment approval

So expect there will be some activity offshore NSW coastline in the next month or so hopefully including first drill rig, if not early 2010. So what are the challenges?

Environment – The recent applications can be read see http://www.environment.gov.au/cgi-bin/epbc/epbc_ap.pl?name=current_referral_detail&proposal_id=5093 re site survey and http://www.environment.gov.au/cgi-bin/epbc/epbc_ap.pl?name=current_referral_detail&proposal_id=5094 re drilling and are very compelling, especially if you consider the need to reduce dependence on coal energy. They also address the environmental considerations, e.g. every species of fish, bird, shark, dolphin etc in the permit area.

Economic – No brainer if proved commercially viable and expect both state and federal governments will be supportive.

Finding the stuff and viability – Who knows whether the supposed resources will be retrievable commercially? But we’re going to find out and in the meantime there will be a lot media coverage and interest in this project. By the time we find out, present holders will have sold along the way and hopefully free carried.

The biggest carrot – Note MMR has pdf status which means that capital gains and hopefully dividends are tax free. Not only very attractive but some indication of the strategic value placed on the project by the government.

The operating structure is fairly complex, but suffice to say MMR is majority shareholder of Advent, see today’s preso for breakdown and Advent will increase interest in PEP 11 to 85% once they drill the first well, while Bounty Oil BUY will have 15% interest.

Today’s Advent presentation also mentions a couple of other permits which are fairly promising, and I copy post on HC today from Jazzasax “noticed Exoma Energy EXE have asked for a trading halt... have the 100% working interest on Perth Basin. "EP 419 covers 559km² on the north eastern side of the Perth Basin about 10km east of the Beharra Springs Gas Field. Advent has retained a 3% royalty on future profitable production from EP 419."

Conclusion – Who knows where this will lead, but it is a wonderful project with the potential to participate in the development of an East Coast energy megastar.

Pls do not rely on above and DYOR. Best wishes to all current holders of MMR, BUY, GBA & BPH (last two also have interests in Advent).

 

[Jay-684]

All,

fyi great presentation released today regarding BUYs current prospects and projections/objectives for 2010.

Definately looks like they will be having a very busy year with plenty planned.

Some of the EV figures are very encouraging, especially PEP11.

Up today to 10c based on this release.

I'm still holding