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AWE - AWE Limited

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oldblue said:
O me of little faith!

Looks like the emails - or something! - had the desired effect!

Click to expand...

Oldblue, I think it was just time the decision was made. I don't think that 2 emails would have made any difference. I'm happy NWE got the green light
 
Looks like it might have popped.
Was up quite nicely early then a couple of big blocking orders appeared (looked like they were trying to encourage the northerly direction) a few cents under the trading level and they got dumped on quick smart!!
Has been bullish to ths point for a while now.
 

Sorry can't help you NWO but would be interested in where the others see AWE are heading. Have had them on my watchlist since February but they have trouble getting past $1.20.
 
AWE chart seems to be showing support for upward trend..any thoughts from the chartists please
 
Not bad technically.
Bit of resistance at around $1.45
to be aware of.
Above that clear skies.
 
I'd be taking some in the light of supply risk coming off.
At worst get back on if it breaks.
I think alot of oil stocks could be good shorts right now!
Remembering US is almost self sufficient and China is slowing!
 
tech/a said:
Not bad technically.
Bit of resistance at around $1.45
to be aware of.
Above that clear skies.
Click to expand...

Agree...that is where it stopped last time...and will be watching closely. Upside this time is still the ongoing spat in Egypt and lower $AUS...anticipating good financials this month and comparison with crude prices 6 months ago is all positive
 
ASX Announcement
9 July 2013
Flow back operations at Arrowsmith-2 to recommence in August 2013

AWE Limited (ASX: AWE) reports that the Operator of the EP413 Joint Venture (AWE 44.25%)
has today advised that recompletion, flow back and testing operations at the Arrowsmith-2 well
located in the onshore Perth Basin, Western Australia, are scheduled to recommence on 1
August 2013.

Operations at Arrowsmith-2 have been on hold pending arrival of long lead-time materials and
equipment, including a Coiled Tubing Unit, so that the well can be recompleted using 2 3/8 inch
tubing (currently 5 ½ inch) which is expected to improve the well’s ability to clean-up fluids and
flow back gas to the surface.

The Operator has also advised that the next stage of the testing program will initially focus on the
High Cliff Sandstones followed by the Irwin Rover Coal Measures and the Carynginia Shale
Formation. The latter has been shut-in over recent months to monitor well pressure build-up, and
a short duration flow back test will be undertaken prior to the commencement of re-completion
works.

AWE’s Managing Director, Mr Bruce Clement, said, “Recompleting the Arrowsmith-2 well
using an optimum tubing string is expected to expedite the clean-up of the fluid column in the
well and increase the potential for improved flow back of gas.

“We are keen to complete the Arrowsmith-2 testing program for the targeted shale and tight sand
formations in order to prioritise the resource development potential of EP413.

“As previously announced, the Joint Venture is planning to acquire a 3D seismic survey over the
Arrowsmith area that, together with the test results, will provide us with the data required to
evaluate the next phase of activity. This could include drilling a horizontal, multi-stage
hydraulically stimulated production test well in 2014,” Mr Clement said.

The Joint Venture partners in EP413 are:
AWE Limited (via subsidiaries) 44.25%
Norwest Energy NL (Operator) 27.95%
Bharat PetroResources Ltd 27.80%
 
Share price rise today after ASX ann
AWE $1.270 $+0.085 (+7.17%) Mon 16 Dec 2013 10:47 AM
-- had high of 1.305

AWE 16/12/2013 9:07:25 AM AWE Rejects Non-Binding Conditional Senex Scrip Proposal

AWE Rejects Non-Binding Conditional Senex Scrip Proposal
AWE Limited (ASX: AWE) (the “Company”) advises that the Board of AWE has considered and rejected a non-binding and conditional scrip based takeover proposal from Senex Energy Limited ("Senex"). The Board determined that Senex’s proposal was not in the best interests of AWE shareholders and accordingly was not appropriate to pursue.

Following the meeting of the AWE Board, AWE verbally advised Senex of this decision on 15 December 2013. Subsequently, Senex has written to AWE to formally withdraw its offer.

Senex had proposed that it would issue 1.9 Senex shares for every 1 AWE share, which would have resulted in the equity in the merged group being held 53% by Senex shareholders and 47% by AWE shareholders. Based on the closing price of Senex shares on 12 December 2013 of $0.76, the takeover offer implied a price for AWE shares of $1.44 (Senex’s six month VWAP is $0.72 implying an AWE price of $1.37). Senex’s proposal was conditional on the conclusion of due diligence and subject to a 90% minimum acceptance condition, introducing material completion risk.

Senex had also advised the Company that it had been active in the market acquiring AWE shares. The Board of AWE determined that it could not allow its existing shareholders to sell shares without knowledge of the proposal and hence made the decision to place the Company in a trading halt.

Due consideration was given to the proposal from Senex by the Board of AWE which sought and obtained external legal and financial advice. The Board considered the proposal not to be in the best interests of AWE shareholders, taking into account:
· AWE's view that the offer significantly undervalued AWE shares without an appropriate premium for control; and
· The relative market valuations of the companies. Under Senex's takeover proposal,
AWE would contribute a substantially greater share of 2P reserves (70%), total production (80%), sales revenue (67%) and EBITDAX (67%)1, however AWE shareholders would receive only 47% of the merged group equity.

While the Board of AWE recognises the potential to add shareholder value through material M&A transactions, it remains confident of the Company's ability to create further value for shareholders through the ongoing commercialisation of AWE's existing portfolio of opportunities, which are primarily near term development in nature. AWE has recently advised the market that it is aiming to double production and triple cash flow by 2017 (2)

Additionally, AWE will continue to assess potential value accretive asset opportunities such as the purchase and recent farm-down of equity in the Ande Ande Lumut project.

AWE appointed UBS as financial adviser and Herbert Smith Freehills as legal adviser in relation to the proposal.

Notes
1. Based on Senex annual report for year ending 30 June 2013 and AWE annual report for
year ending 30 June 2013, with AWE’s 2P Reserves adjusted for the sale of a 50% interest
in the Ande Ande Lumut oil project.
2. Announced at the AWE Annual General Meeting held in Sydney on 27 November 2013.

8613
 
This stock came up on my radar. Does anyone own or follow? What confidence is there that management will deliver on these projections given in the presentation for the November AGM?
 
I hold a few AWE but would take projections going out four years, particularly by an oily, with a fairly large pinch of salt.

Would love to be proven wrong!
 
oldblue said:
I hold a few AWE but would take projections going out four years, particularly by an oily, with a fairly large pinch of salt.

Would love to be proven wrong!
Click to expand...

Thanks oldblue. Given your comments I won't ask when you bought your shares as those that live in glass houses... Am I trying to pick bottoms or am I trying to pick swings and jump onto momentum? I'm looking for the later but with the idea of not needing to trade and monitor the market too often. I want to trade through big cycles not small ones. So, although the technicals might suggest a bottom that's not what I am after when I think about it. Will keep an eye on if I remember to. Might be worth a look at for a trader if they think that oil has the chance to head up from here. I'm very long HZN at the moment. I want to be a momentum trader by my spirit is to be contrarian.
 
Accumulator said:
So what are the implications with this sale oldblue? I still hold a few.
Click to expand...

I'm probably not the right person to ask. The first point though is that it makes a nonsense of a fresh four year projection of the company's cash flow. Other than that, it provides more cash for drilling wells in search of a bonanza strike - which I suppose is what most of the oilies are about. Good stocks for trading if you get it right but not for buying and holding, IMO.
 
Starting to get an itchy finger with AWE, was looking @ $2.00 but might cash in soon. Has been on a huge run, not sure how far it can keep going?
 
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