AOE - Arrow Energy

[Dukey]

AOE has really surprised me since I finally got in about a month back.
I figured the big run had ended and expected a long term - slow and steady performer after the last spectacular year. But she just keeps on rocketing!!!!!!!
Maybe there is something in the wind with the Indian deals.
They have a holding (14% ??) in PES too - which has gone from 20c at listing last year to high of 62 cents right now and looking good - so that won't hurt AOE at all either.
Nice days - good luck all holding...

 

[chris1983]

AOE has really surprised me since I finally got in about a month back.
I figured the big run had ended and expected a long term - slow and steady performer after the last spectacular year. But she just keeps on rocketing!!!!!!!
Maybe there is something in the wind with the Indian deals.
They have a holding (14% ??) in PES too - which has gone from 20c at listing last year to high of 62 cents right now and looking good - so that won't hurt AOE at all either.
Nice days - good luck all holding...

Good point Dukey to mention PES. Im pretty sure they can hold a larger % of the company when they exercise the options they have. I read it somewhere. Anyway I think PES will be a takeover target for Arrow in the future.

 

[Dukey]

Good point Dukey to emntion PES. Im pretty sure they can hold a larger % of the company when they exercise the options they have. I read it somewhere. Anyway I think PES will be a takeover target for Arrow in the future.

Yeah - wish to hell I heard of PES before the float - maybe Sept? last year.
As it is I got in there a few weeks back (just after buying AOE) and have been VERY happy!!!!!
The old faithful: QGC hasn't been too shabby lately either.
the whole CSM sector is just going nuts.... is it time to start worrying yet?

 

[chris1983]

Yeah - wish to hell I heard of PES before the float - maybe Sept? last year.
As it is I got in there a few weeks back (just after buying AOE) and have been VERY happy!!!!!
The old faithful: QGC hasn't been too shabby lately either.
the whole CSM sector is just going nuts.... is it time to start worrying yet?

CSM is the future along with Uranium. Im not worrying. Energy stocks are the way to go. India and China need energy which is why I really like Arrow. they will become a large international player in the energy sector. I had the opportunity to buy PES but never did. No cash at that time..it has been a winner for holders though and a winner for Arrow.

 

[ta2693]

CSM is the future along with Uranium. Im not worrying. Energy stocks are the way to go. India and China need energy which is why I really like Arrow. they will become a large international player in the energy sector. I had the opportunity to buy PES but never did. No cash at that time..it has been a winner for holders though and a winner for Arrow.

Chinese found 2 very big oil & gas field around 1 billion ton each by using new technology. I read a report about that. The report said this technology can help oil company to find oil which is impossible to find in the past. I think even if another 1 billion ton oil field were found, China still would be short of energy in long term. but in short term, It is not a good news for oil company.

 

[chris1983]

Announcement out and there was a UK Investor Presentation made by Arrow. An excellent presentation. I just had a read and is more than likely the reason for the strong buying. Overseas investors know when they see or hear about a good thing.

 

[svensk]

Jumped on AOE about a week ago, she is running hot today :evilburn:

This is some consolation after exiting ern too early

 

[Dukey]

Surprised there has been no posting on AOE (or PES) threads today!!

Both shares jumped considerably on news of AOE signing a 'heads of agreement' (.. that term just makes no sense to me??) with LNGI (liquified Natural Gas INternational and 'Golar' - Gas shipping company to supply gas for a proposed LNG plant at Gladstone.

AOE up 18c to $2.58 (maxed at 2.70 - all time high)
PES up 11c to 70c (maxed at 75c - all time high).

Both companies looking better all the time...

 

[chris1983]

Surprised there has been no posting on AOE (or PES) threads today!!

Both shares jumped considerably on news of AOE signing a 'heads of agreement' (.. that term just makes no sense to me??) with LNGI (liquified Natural Gas INternational and 'Golar' - Gas shipping company to supply gas for a proposed LNG plant at Gladstone.

AOE up 18c to $2.58 (maxed at 2.70 - all time high)
PES up 11c to 70c (maxed at 75c - all time high).

Both companies looking better all the time...

Been posting on other sites Dont you worry I saw it run. As I said on another forum I'm enjoying watching Arrow blossom into a large international energy company. Its only the beginning.

 

[chops_a_must]

Surprised there has been no posting on AOE (or PES) threads today!!

Both shares jumped considerably on news of AOE signing a 'heads of agreement' (.. that term just makes no sense to me??) with LNGI (liquified Natural Gas INternational and 'Golar' - Gas shipping company to supply gas for a proposed LNG plant at Gladstone.

AOE up 18c to $2.58 (maxed at 2.70 - all time high)
PES up 11c to 70c (maxed at 75c - all time high).

Both companies looking better all the time...

I bet you're glad you got into them! Had a choice of them or topping up on ESG. Should have gone with PES. Ah well, I'll get them on a (if they) retrace. But the train may have left the station for them.

Been posting on other sites Dont you worry I saw it run. As I said on another forum I'm enjoying watching Arrow blossom into a large international energy company. Its only the beginning.

Yep. Although I had no idea it would come about this quickly. I would have picked 5 or 6 dollars within a few years. But it looks like it could get to these levels a lot faster. It seems to be one of those companies that has projected/ almost certain earnings well in excess of the current market cap. Fantastic stuff. I can see this becoming one of the most important energy plays in Australia within a few years.

And in Agentm's language, "It's still absolutely fantastic buying at these levels!"

And just in case people missed it, the media release featuring the multi-billion dollar deal:

Arrow gas for export market in multi-billion dollar LNG export deal

Arrow Energy N.L. will supply gas to a new liquefied natural gas (“LNG”) export facility planned for Queensland’s Port of Gladstone in a multi-billion dollar deal that has the potential to more than double Arrow’s forecast production and provides leverage to soaring oil prices.

Under a Heads of Agreement (“HOA”) signed with LNG International Pty Ltd (“LNGI”), supported by the world’s largest independent owner of LNG transportation, Golar LNG Limited and a high investment grade Japanese LNG buyer, Arrow proposes to supply 55 petajoules of gas per year for a 12-year period from late-2010, with an option for another 55 PJ per annum from as early as mid-2011, subject to a second LNG train being developed.

The first stage of the facility is designed to produce around 1 million tonnes per annum of LNG with an option to expand to 2 million tonnes. Arrow’s gas will be supplied at a base price with an upside linked to oil prices, providing the company with significantly higher prices than gas priced for electricity generation.

Chief executive Nick Davies said, “This is the breakthrough we’ve been looking for and planning towards over the past 15 months.”

“Our strategy has been to seek a viable export project for our coal seam gas (“CSG”) from the east coast of Australia that would give us exposure to oil pricing and to help us to break out of the low gas price environment in the eastern states caused by the wide availability of coal.”

Currently forecasting production of a net 60 PJ of gas by 2010, Mr Davies said Arrow’s strategy had been building up its resource position in preparation for the groundbreaking deal.

“Last year’s merger with CH4 Gas Limited, the investment and farm-in to Pure Energy Resources Limited Bowen Basin CSG acreage and the $265 million investment by Sweden’s Energy Infrastructure Group AB in our acreage were all designed to get us a critical mass of reserve certification options aimed at supplying the Port of Gladstone so that we could export gas as either LNG, CNG (compressed natural gas) or GTL (gas to liquids),” he said.

Arrow also has the option to aggregate the gas supply from multiple sources (including joint venture parties) which, importantly, will provide the impetus for development of Arrow’s Bowen Basin, Coastal Queensland and Pure Energy joint venture coal seam gas holdings plus associated major pipeline infrastructure, Mr Davies said.

LNGI is a wholly owned subsidiary of ASX listed company, LNG Limited, which is 20% owned by Golar, the world’s largest independent owner of LNG shipping transportation with a project portfolio, which fully covers LNG mid-stream activity – liquefaction, shipping, trading and regasification. Golar has confirmed its “in principle “ interest in investing in the Gladstone LNG project; purchasing the LNG offtake in addition to assisting with shipping solutions.

Discussions are currently underway with relevant authorities regarding a likely facility location in the Gladstone Port area.

Mr Davies said, “Arrow is drawing up a 2008 financial year exploration and appraisal programs targeting net 2P (proved and probable) reserves of 1,500 PJ, with a target for gross un-contracted reserves that could access the Port of Gladstone, of around 1,100 PJ during the year.

“That reserve level would be more than adequate to meet the needs of the first LNG train, with any additional reserves required for the second LNG train to be added in FY2009. The significant field development that will follow on immediately from this reserve certification program is also being assessed for implementation in the FY2009 and FY2010 years.”

Financial close for the LNG terminal project is targeted for September 2008 with a development timeline to enable first deliveries of LNG in late 2010.

“Arrow continues to focus on new business with higher margins, both in product selection in terms of GTL, LNG or CNG, and internationally, where we’ve signed CSG exploration deals in the high-growth Asian markets of China, India and Indonesia,” Mr Davies said.

“This LNG export agreement shows our ability to execute on our strategy and we anticipate significant growth in shareholder value as we move towards our goal of becoming the Asia-Pacific region’s leading independent CSG producer.”

And the chart attached. I guess what has been notable about this run is the volume. It has been monumental, with for periods during today where people were buying whatever was on offer. To me this indicates that there is a different type of holder on board now... one that is looking for a big return on today's SP. This volume has not been seen since its breakout from 60c. But obviously... the dollar values per volume are exponentially larger now.

The projected levels have been pretty accurate so far. And given this was so strong on a down day, unless the world collapses, it may keep chugging on based on its momentum. The buying today was almost frenzied. So, the next price levels look to be just over $3. I for one didn't expect it to get to $2.50 so quickly... so I really have no idea where this could end up.

Cheers,
Chops.

 

[laurie]

This will bring smiles to Soul Paterson's 18.8% AOE holding via NHC it was $58 on 31st Jan

cheers laurie

 

[Dukey]

I bet you're glad you got into them! Had a choice of them or topping up on ESG. Should have gone with PES. Ah well, I'll get them on a (if they) retrace. But the train may have left the station for them.
.........................
Cheers,
Chops.

I am indeed glad chops. Both AOE and PES have gone better than I could have expected since I entered. Must've been in the right place at the right time!! (nice change that!)
If the PES train hasn't left the station today - then it's sure building up some steam. The thing is these CSM powered trains seem to just keep going... faster ... and faster - so I'm sure it's not too late. Realistically, PES especially could settle or retrace a bit from here. But thats just a gut (?glut?) feeling.

 

[chris1983]

Opened at 2.72..what a steam train...further ran to 2.76. Amazing. Some very larger buyers in there can see the long term potential of this stock. Its had some very solid gains over the past week....

 

[chris1983]

Um where have my posts gone? Why were they deleted? What was said wrong this time? I dont understand why they have been removed?

 

[chris1983]

Once again as I said earlier. Arrow is breaking all time highs continuously. I dont see the reason for removing my previous posts. Arrow are powering upwards and this is still with no news in regards to their international assets. Arrow touched 2.98. Very close to the $3 mark. I dont think saying it could reach that level is a bad thing since it only came within 2 cents from touching the market. Arrow are holding very firm atm. Happy to be holding. If you are going to remove this post private msg me and give me reason. There is no ramp intended in this post.

 

[chris1983]

A good article from the Herald Sun which is an interesting read.

http://www.arrowenergy.com.au/documents/892.pdf

I like this part of the article

"The deal could be notionally worth up to $6.325 billion to Arrow Energy."

Just a note in regards to Arrows Indian tenements..International Gas prices in India are some of the most expensive in the world.

6.00-11.00 per MCF with China following at

3.00-4.50 per MCF

Don't forget Arrow acquired some of the best CBM blocks available in the last bidding process. We knew this would happen as they were bidding with GAIL a partial government owned company. When the Governments on your side you get the best There is still no news on these projects but I'm sure they are working heavily on a development strategy.

The potential resource in the blocks they have won is 10 TCF as estimated by the Indian Government.

I would advise anyone looking to invest into Arrow to watch this video.

http://www.investortv.com.au/wl/vr.aspx?id=CMP100Z7G5CT15X97BYNW

 

[Sprinter79]

I wonder why it's fallen 6% thus far today on the back of this news:

"Arrow Energy NL has won a finals berth in Australia’s most prestigious environmental awards
with nominations for the company’s innovative recycling of coal seam gas waste water and
coal mine degassing in Queensland."

Just because they're doing something for the environment doesn't mean they're not cool hahah

(at least that's what their mum says

 

[Dukey]

AOE have run so much lately - a bit of a consolidation was to be expected i think & it aint necessarily a bad thing. More to do with a few profit takers than anything else I reckon. QGC went down with it accordingly.

 

[Sprinter79]

Nah, i don't necessarily think it's a bad thing either. The energy sector is down nearly 0.5% on the day anyway.

 

[chris1983]

Nice recovery by Arrow today after hitting a low of 2.63. I really dont know what will stop this company. During any correction of late Arrow has been really strong. Even in the last market correction Arrow had a strong run and was one of the very few stocks to gain. Energy is the sector to be in. Thats just my opinion. Go the energy stocks! Gas and uranium.