AWE - AWE Limited

[bigdog]

AWE $1.940 $+0.260 +15.48% @ Thu 18 Sep 2014 3:30 PM


AWE 18/09/2014 9:55:34 AM AWE Confirms Significant Gas Discovery For Waitsia Field

http://www.asx.com.au/asxpdf/20140918/pdf/42s91wp0102m4x.pdf

ASX Announcement
18 September 2014

New Waitsia field potentially the largest conventional onshore gas discovery in WA since the 1960s

• The Senecio-3 well has increased the development potential of the Senecio gas field and discovered the new “Waitsia” gas field in the underlying section
• Waitsia represents an exciting new play for the north Perth Basin with large upside potential
• The Senecio and Waitsia fields provide an early conventional production opportunity with combined gross 2C (P50) Contingent Resources of 360 Bcf

Following on from the recently announced upgrade of 2C Contingent Resources in the Senecio Field, AWE Limited (ASX: AWE), as Operator of the L1/L2 Joint Venture, today announced initial Contingent Resource estimates for the “Waitsia” discovery (formerly Senecio Deep) located in the north Perth Basin.

After initial analysis of data from the Senecio-3 well, and the existing 3D seismic, AWE estimates that the Kingia/High Cliff Sandstone intervals in the Waitsia Field have gross Contingent Resources in the range from 65 billion cubic feet (Bcf) to 1170 Bcf, with a best estimate (2C) of 290 Bcf (Table 1). The presence of a significant quantity of potentially moveable hydrocarbons is indicated by strong gas shows, petrophysical analysis and pressure data. Net to AWE, the combined Senecio and Waitsia fields represent a best estimate (2C) of 180 Bcf of gas (Table 2).

Further evaluation and appraisal will be required to more accurately define the size of the accumulation and the lateral extent of the conventional and tight gas bearing sands. It should be noted that the Kingia/High Cliff Sandstone interval has not been previously penetrated in this part of the basin and represents an exciting new play with significant upside and follow-up potential.

I hold AWE

1652

 

[Ferret]

Interesting times for AWE. An intended cash offer of 0.73 from CERCG. Trumped by a firm offer of 0.83 cash and script from MIN.

CERCG now announces FIRB approval of its takeover offer. A sweetened cash offer to follow?

AWE currently trading at 0.86.

 

[bigdog]

There have been three takeover offers now in past two months

http://www.theage.com.au/business/e...idding-war-heats-up-20180131-p4yz4s.html?btis

AWE gives ultimatum as bidding war heats up

AWE has given Mineral Resources three days to respond to a rival takeover bid, as the company latest results highlight strong revenues and record gas flows.

The bidding war for AWE heated up earlier this week after Japanese conglomerate Mitsui threw its hat in the ring, making an unsolicited all-cash takeover proposal of 95 cents a share, or around $602 million.

The new bid is a 14 per cent premium on the existing $526 million proposal from Mineral Resources.

AWE has given Mineral Resources three days to match Mitsui’s bid otherwise it will accept the Japanese offer.

A spokesman for Mineral Resources told Fairfax Media the company was considering its position.

Although there is a break fee of around $5.2 million payable by AWE to Mineral Resources if the deal falls through it may not be applicable in the case of a higher offer such as that made by Mitsui.

In its latest quarterly results, AWE recorded a 5 per cent increase in production for the December quarter compared to the same time last year, and had a largely flat quarter-to-quarter production, supported by a 13 per cent increase in sales revenue built on improved oil and gas prices.

“Conditions in the Australian domestic gas markets remain strong, which bodes well for re-contracting our east coast gas reserves and the marketing of Waitsia gas on the west coast,” AWE managing director David Biggs said.

“Brent oil prices hit three-year highs during the quarter, strengthening the outlook for the Ande Ande Lumut project [in Indonesia].”

While AWE’s BassGas project improved its performance, increasing 12 per cent in output quarter-to-quarter, rising from 363,000 barrels of oil equivalent (boe) to 408,000 boe, this was negated by an 18 per cent drop in its Casino/Henry project’s production rates due to natural field decline and scheduled downtimes.

AWE also noted improved reserve levels at its Waitsia joint venture project, increasing its proven and probable reserves at the asset by 80 per cent in the December quarter, lifting them to 820 petajoules in total.

The company also slashed its net debt levels by 49 per cent, reducing its debt position from $64 million down to $32.3 million.

However, analysts believe the results are essentially background noise as AWE received a new takeover proposal, giving Mineral Resources a Friday deadline to increase itsr offer.

“The AWE second quarter FY18 production result is of little consequence given the current battle for control for the company and the skew of value to the pre-development Waitsia asset,” RBC Capital Markets analyst Ben Wilson said.

AWE's shares price closed on Wednesday at 97 cents.

9997

 

[System]

On May 8th, 2018, AWE Limited (AWE) was removed from the ASX's official list in accordance with Listing Rule 17.14, following despatch of the compulsory acquisition notices by Mitsui & Co., Ltd.