It could be a long time, have a read of the report to the ASX on the 28, DON'T worry they are AOK, your money is safe, you WILL make money on them.
This share has been in a trading Halt for a while, and according to Comsec is 'suspended'. Also when I look at my portfolio in Comsec, it says the value of my holding is $0.
Does anyone know why it is taking so long to come out of the Trading Halt??
if its a public raising and higher than current price...well use your logic to figure out what happens.
if its below the market price (it better be significantly lower) then us azz holders can probably take it up and sell on market before it revalues lower.
i think alot of people have realised cap raisings usually = easy money.
either way, from what i can see unless something drastic happens, then i can only see good news happening. this is me being overly optimistic though
6. Corporate
6.1 Cash Position
As at the date of this report inclusive of the capital raising from the issue of 40 million shares at 25
cents and having already paid the interest payment due on the convertible notes, all AFE (Authority
for Expenditure) costs for the Frances Dilworth No. 2 well and the Petrohawk term assignment
amendment the company has cash on hand on $11.0 million.
Additionally Patersons Securities Limited will act as lead manager to a Share Purchase Plan
(SPP). Under the SPP all eligible shareholders will have the opportunity to subscribe for up to
$15,000 worth of fully paid ordinary shares. New shares under the SPP will be offered at the
same price as the Placement, being 25 cents per share, a 18.5% discount to the volume
weighted average share price for the 5 trading days prior to 5 August 2009. No brokerage,
commission or other transaction costs apply to applicants for the shares issued under the SPP.
The SPP is proposed to be capped at 8,000,000 shares to raise up to $2,000,000.
The offer is open to all holders of fully paid ordinary shares registered on the Company’s share
register at the record date of 20 August 2009, with a registered address in Australia and New
Zealand.
The board has taken this step to provide an opportunity for shareholders to increase their
participation in the future growth of the Company on similar terms to those of the Placement.
Monies raised through the Placement and SPP will be used to purchase additional Eagle Ford
shale acreage and to augment working capital.
Agentm,
To the best of my knowledge petrohawk have no acreage that includes the edwards limestone trend.Their acreage is all below that.
On the seismic data that antares aquired the joint venture acreage that petrohawk has is some 1000ft plus deeper than much of antares acreages.
From my research once you move above 11000ft the chances of increased condensate content are increased.It will be interesting to see where the lateral will be located in the francis dilworth 2 well.
As for the edwards limestone,with a verticle well and an acid frac it was unlikely that the well would flow more than 2mmscfd,but in wells you test from the lowest zone first,plu with prodominately dry gas its simply not commercial in the current environment.
If the eagle ford is successful in this well,the will be no more wells drilled to intersect the edwards until all available eagle ford shale wells are drilled.
People ask if the 39000 acres antares shot 3d seismic over is so prospective ,why have other companies not leased the land.
There are several reasons for this,
1)only antares,sidc and pioneer have acess to the seismic
2)why hasnt pioneer leased some of the land then?
3)I believe antares and sidc still have a valid deed of exclusivity over the balance of the land.
4)I believe petrohawk has only been given access to the 3d seismic data for the land involved in the joint venture.
I hope this sheds some light on some grey areas.
All the best.
P.S. I wish to add that it doesn't make economic sense in the current environment to spend additional funds completing a horizontal on the edwards (if it is possible) to maybe only increase flow rates by a modest amount when you can perform a horizontal in the eagle ford with potentially a significant condensate content hence far greater commercial economics.
gerkin
i am an observer here only, i would jump on any good eagleford shale play thats going to run in a heartbeat, i really have looked this play through quite thoroughly.. my questions on why petrohawk dont drill on the reef itself or north of it must be because they have some good local knowledge on the region.. would love to see some local data on the eagleford in lasalle and mcmullen on the reef or north of it, but i have not tracked any down yet..
re the 3d thing..
conoco are doing a massive 3 d operation in live oak and karnes, part of it is on the tcei/ adi acreages, but that does not mean adi will purchase it.
3d's dont gave you mineral rights on land in texas, you sign up a different contract for a 3d, as for a pipeline and also for a exploration lease deal.
some friends of mine in texas have another deal, where their land is being used for underground storage, so they get royalties there also!
these points you raise
People ask if the 39000 acres antares shot 3d seismic over is so prospective ,why have other companies not leased the land.
There are several reasons for this,
1)only antares,sidc and pioneer have acess to the seismic
2)why hasnt pioneer leased some of the land then?
3)I believe antares and sidc still have a valid deed of exclusivity over the balance of the land.
4)I believe petrohawk has only been given access to the 3d seismic data for the land involved in the joint venture.
I hope this sheds some light on some grey areas.
1/ if pioneer have access to the seismic then so be it, but from what i see they are not going to drill north of the edwards reef, from my memory their next eagleford well will be well south of the reef in mcmullen county.
anyone can do another 3d on the same region. in lasalle there is the union pacific PENA-PENA UNIT that tested the chalks in 1991,
2/ pioneer has not leased land in mcmullen primarily as it has well over 300,000 acres of far more prospective acres of eagleford already, and it has also got eagleford/chalks plays in dewitt and karnes and bee counties.. they dont discuss their chalks well but i know all about it. and the eagleford regions that pioneers has in dewitt, karnes are way superior to the eagleford in mcmullen. (250 - 300 + bo per 1mmcf ) they are simply testing the bookend of the play east and west atm..
3/ if AZZ has exclusivity over land then they should declare it, its a public company and that should not be hidden, i am not aware of any such deed, and imho any landowner signing one would be limiting their opportunities, can you varify where the info on this is? i would be interested in that.
4/if petrohawk buy 3d data for their use, its not uncommon. i doubt if it would be given.. nothing is free in the oil game.
shoecrew. i understand what you saying in regard to your opinion on azz, i share some of them myself, i am not sure if your being too harsh on azz, but i do agree the costs for development of a play like this is far beyond the scope and more importantly the ability of azz..
should azz find the eagleford is active and commercial in their current well, then i think the opportunity to get a roll onto the play is not outside the scope of azz if they held a far smaller interest. it would take 2 - 3 rigs and need a good $50 - $100 mill to charge into the play. these wells are being drilled in some really staggering times..
there is a good commercial envelope there to work in, but you need the rock to flow and the wells to produce some good condensate, the mcmullen and lasalle county wells need much higher ip figures. in live oak i believe the eskew west well of COP is now settling in at 500 bopd, so the economics of the eagleford is highly attractive there with payback in months. and a handy profit within a year.. and they are looking at 20 year flow rates on the shale
not saying azz is not a good investment, i am just observing the share myself and questioning why noone is drilling on the reef or north of the edwards reef in lasalle and mcmullen? and i just dont get why they dont test the eagleford first b4 pushing into a shale lateral?? if you have a well there and have designed it for a test, then why not test it?
that part is a mystery for me in any case..??
gerkin are you aware why they changed course?
all imho and dyor.. and i am not trying to put down azz at all, just throwing in a few observations and questions..
Agentm,The reason I believe antares and SIDC have an exclusive right to the remaining area of the 39000 acre 3d survey is that this land is owned by SIDC.
Hope this helps kind regards.
The president/ceo of sidc is blackstone dilworth.
I believe he has been approached many times before for lease of his land.
Antares were successful in negotiating a 50/50 joint venture with him.
Hope this helps
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