BOW - Bow Energy

Hi folks,

BOW ... will be alert for some news over the next week
or so, as a few positive cycles come into play, ...

Positive news expected around 24-26042007.

... more later.

happy days

paul



=====

You mean 2007.

... thank you, richdad !~!

BOW AND ARROW

Bow Energy (BOW)
Shares outstanding 107,748,295
Options 18,320,539 @ .20 BOWO expiry 31 March 2008
Current Share price .165
Market Cap 17.8 million undiluted
Cash $1,867,305 (Another 3mil in march 08 if all options are exercised)

Bow is an oil and gas exploration and production company, now moving its focus to CSG. In 2005 Arrow transferred its conventional oil and gas assets to a new subsidiary, Bow Energy, which was separately listed in April 2005. Arrow shareholders received an in specie distribution of Bow shares.

Bow are starting a 3 well CSG project in QLD’s Bowen basin this week there is plenty of CSG experience here with 3 of the 4 directors are present or previous directors at Arrow Energy.

Recently announced a farm in with Santos and Avery, Bow is free carried 15%, drilling will be started in January / Febuary completed sometime in the 1st half 2008.

Bow is very early stages of the growth as you can see, but long term this has some great growth potentials with the support of Arrow Energy and the focus now shifting to CSG, Possible income in 2009 through JV with strike oil, Bow looks to be a good valued company in comparison with other CSG companies at current prices and only 100 million shares on issue.

March options expire around the time of Santos farmin drilling program so could be a good buy in the future but present prices .045 a little over priced in my opinion for the risk involved.

Management
Ron Prefontaine - Managing Director
He carried out development and exploration work in the Cooper-Eromanga Basin and other areas for Santos Ltd left in 1984.

Executive Director for Arrow Energy NL. At Arrow, was in charge of their early successful coal seam gas exploration program. Prior to joining Bow Energy, he managed an exploration program in the Cooper-Eromanga Basin, which had a 50% successful oil well strike rate.

Nick Mather – Non-Executive Director
Managing Director of D’Aguilar Gold Ltd, Executive Director of Arrow Energy NL from 2000 to 2004, Drove the acquisition and business development of Arrow’s large coal seam gas projects in South East Queensland.

Stephen Bizzell – Non-Executive Director
Executive Director of Arrow Energy NL and Renison Consolidated Mines NL.

Keith Martens – Exploration Manager
Explorationist with 28 years of oil finding experience most recently as exploration manager of Tap Oil, primarily focussing on the Carnarvon Basin. He also has extensive experience in the Cooper-Eromanga with Santos and other areas overseas.



Main Projects (Drilling schedule below)

Most recent announcement Bow 15% free carried:
Avery / Santos ATP 752P farmin are as follows:
ATP 752P Wompi Block:
4 oil exploration wells
Minimum 200km² 3D Seismic

ATP 752P Barta Block:
3 oil exploration wells
Minimum 100km² 3D Seismic

Santos will take over as operator of ATP 752P with the initial two firm farmin wells (one in each block) currently planned to commence early in 2008 and has indicated that it would prefer two wells in each block (potential total of four initial wells prior to end of the first half of 2008) while the drill rigs are in the area. Drilling of the extra two wells will be conditional on a Santos internal technical review of the current Joint Venture’s recently acquired 2D, 3D and reprocessed seismic data in the permit.

Don Juan Coal Seam Gas Project
Bow’s planned Coal Seam Gas (CSG) exploration drilling program on its Don Juan CSG Project (Bow 45%) is due to commence drilling 4th week October. The initial CSG exploration program consists of two CSG wells plus a third contingent well.

579 PJ of inferred gas resource potential. These directors know there CSG being ex-Arrow directors this project can be compared to Arrows Tipton West Field 1P, 2P and 3P reserves of 25 PJ, 174 PJ and 2265 PJ respectively and Tipton is one of Australia biggest. The first pilot in Tipton was drilled 2005.

RIVOLI GAS FIELD DEVELOPMENT UNDER REVIEW
Carnarvon Basin Permit EP325
The Commonwealth of Australia, represented by the Department of Defence, has commissioned Strike Oil (Strike) to undertake a Front End Engineering Design (FEED) Study to investigate the feasibility of supplying gas from the Rivoli Gas Field, located 7 km southeast of the town of Exmouth, to fuel power generation for the Defence Communication Station located north of the town. If approved for development, Strike Oil will manage and operate the project and first gas sales would be anticipated some time in 2009.

The project will provide around 8 PJ (petajoules) of gas over a period of 20 years.
Bow Energy: 11.1%

Central Eromanga farm out package
some good size targets hopefully will farm out soon with another large oil company maybe Santos again? see link below.

For the rest of the projects see page 5 of annual report. http://www.bowenergy.com.au/investors_centre/documents/AnnualReport2007FINAL.pdf

For comparison sake: Metgasco. (coal seam gas)
Share outstanding 120,787,242
Current Market cap $97M
The major project of a 30MW gas fired power project to supply the power needs of the town of Casino. Well advanced in developing power projects for the Northern Rivers region with our first project, the Richmond Valley Power Station, to commence construction this financial year in 2008. Aiming to deliver 18 PJ per annum.

So for a 540PJ project with a contract for 18PJ per annum sales, a 20% stake is worth $94Million in MEL terms, so BOW has a 45% interest in their CSG project with an inferred resource of 579PJ and I am pretty sure with a new focus to CSG their will be other projects in the future. (Just my opinion) Bow is a longer term hold 2 -3 years minimum for me

Always worth a look at the top 20 also:

TOP 20 shareholders
1 Perpetual Corporate Trust Limited 13,300,000 12.34%
2 ANZ Nominees Limited 4,024,247 3.73%
3 Tranco Pty Ltd * 4,000,000 3.71%
4 Prepet Pty Ltd * 3,661,873 3.40%
5 Arrow Energy NL 2,240,104 2.08%
6 Mr Ronald Prefontaine & Mrs Annabel Frances Prefontaine 1,765,000 1.64%
7 Tenstar Trading Limited * 1,707,500 1.58%
8 Brownward Pty Ltd 1,520,000 1.41%
9 Tricom Nominees Pty Ltd 1,206,212 1.12%
10 Flotek Consultants Limited 1,173,178 1.09%
11 Mr Andrew Trott Hopkins & Mrs Adrienne Janet Hopkins 900,000 0.84%
12 TSN Pty Ltd 840,000 0.78%
13 Mr Guy Lance Jones & Mrs Ann Lyndal Bayly & Mrs Fiona Winten 754,546 0.70%
14 Constellation Energy Pty Ltd 750,000 0.70%
15 Mr Brian Lesleigh Williams & Mrs Valerie Ruby Dawn Williams 739,782 0.69%
16 Forty Traders Limited 730,303 0.68%
17 Andrew Fischer Pty Ltd 716,589 0.67%
18 Mr Donald Broadley Wright & Mrs Robyn Ruth Wright 700,000 0.65%
19 Angar Investments Pty Ltd 630,303 0.58%
20 Loncode Pty Ltd 600,000 0.56%
Top 20 41,959,637 38.94%
Total 107,747,770 100.00%

$0.20 listed options exercisable on or before 31 March 2008:
1 Tricom Nominees Pty Ltd 1,307,997 7.14%
2 Arrow Energy NL 1,120,145 6.11%
3 Mr David Campbell 927,827 5.06%
4 Richard Seville & Associates Pty Ltd 715,807 3.91%
5 Mr Brian Lesleigh Williams & Mrs Valerie Ruby Dawn Williams 500,000 2.73%
6 Mr Ronald Prefontaine & Mrs Annabel Frances Prefontaine 405,000 2.21%
7 Tenstar Trading Limited 400,000 2.18%
8 Mr Janakan Krishnarajah 250,000 1.36%
9 Sixth Erra Pty Ltd 250,000 1.36%
10 Mr James Bishop & Mrs Jennifer Bishop 205,621 1.12%
11 Tranco Pty Ltd 205,000 1.12%
12 ANZ Nominees Limited 203,618 1.11%
13 Blackwidow Securities Ltd 200,000 1.09%
14 Blueys Hotels Pty Ltd 200,000 1.09%
15 I D Engineering Pty Limited 200,000 1.09%
16 Flotek Consultants Limited 191,375 1.04%
17 Mundiwindi Properties Pty Ltd 170,000 0.93%
18 Mr Guy Lance Jones & Mrs Ann Lyndal Bayly & Mrs Fiona Winten 159,837 0.87%
19 Mr Andrew Phillips 158,755 0.87%
20 Bedford Banner Pty Ltd 148,468 0.81%
Top 20 7,919,450 43.23%
Total 18,321,064 100.00%

is coal seam gas for power stations "clean coal"? just wondering heard the pollies going on about it on the radio

Barrw said:

is coal seam gas for power stations "clean coal"? just wondering heard the pollies going on about it on the radio

Click to expand...

"Clean Coal" description here Clean coal is the name attributed to coal chemically washed of minerals and impurities, sometimes gasified.

Yes "clean coal" also known as coal seam gas is primarily aimed at Power Stations or LNG sales contracts. In Bow's case South West QLD I think they will be aiming for a power station contract, with a close proximity to Sunshine Gas CSG field the infrastructure shouldn't be too much of a problem.

When the Kyoto protocol gets taken seriously by Australia the reform should be Gas fired power stations. Transformation from burning coal is already starting to happen with a number of gas production companies. ESG, AOE, MEL just to name a couple...

CSG Gas JV Bow Energy
The Walloon Coal Measures, the primary target coal seams in the area, are interpreted to be present and gassy over all of the Don Juan CSG Joint Venture area and to depths between 250 to 600 metres.

Other info on the surrounding area's of Bow CSG project:

Origin's Gas Fired Power Generator Walloon

Taken from link above:
"Gas for the plant will be supplied from Origin's Spring Gully and Walloon coal seam gasfields, which will cost about $500 million to develop, including building the pipelines, Origin said. The power station is due to start construction in August and be commissioned in the fourth quarter of 2009, with full commercial operations scheduled in the first quarter of 2010."

The is plenty of other Infrastructure also take a look at Arrow Energy, they have a strong presence in this area also with there Tipton Field nearby.

Click here for Arrow Energy's June 30 2006 report page 5 in regards to Tipton Field below:

The total estimated cost of these Facilities is $50 million and the Facilities are planned to ultimately provide the capacity to process and deliver up to 17.8 PJ per annum of gas from the Tipton West coal seam gas field to the following customers:
• ERM / Babcock & Brown for their 450 MW gas fired Braemar Power Project (GSA);
• Ergon Energy; and
• BP via the Roma to Brisbane Pipeline for transportation to BP’s Refinery at Bulwer Island, Pinkenba, Brisbane (MOU).

So there is potential to tap into such lines to send Gas to BP in Pinkenba, very exciting indeed... Arrow has a MOU and Bow is an Arrow spin off....

Just a little more information to consider...

Contacted Bow to find some more information:

1/The CSG drill should be on site next week there has been a number of delays for various reasons as the drill is being used by another party.

2/There is more potential CSG project's in the current portfolio also I am told which are currently being reviewed.

Read my above posts to get an overview of this company :iagree:

Bow Commences Drilling Operations at the Don Juan CSG Project

The directors of Bow Energy Limited (Bow) are pleased to announce that the Don Juan CSG (Coal Seam Gas) Joint Venture (Bow 45% and operator) has commenced exploration drilling operations with Taringa South-1, the first well of a planned three well (2 firm plus 1 optional) CSG exploration drilling program. Proposed wells depths are between 250 to 450 metres.

The Joint Venture plans to case and suspend the wells as future pilot production holes in order to carry out flow and production testing. Assuming positive results of the initial pilot wells, a process of reserve certification should commence early in 2008.

The nearest natural gas pipeline is situated just 8km east of the permit
Bow’s Managing Director, Ron Prefontaine, commenting on the commencement of the first well of the Don Juan CSG Joint Venture stated:
“I am personally very optimistic about the Don Juan CSG Project which has the potential to place the company on the fast track towards substantial CSG reserves as early as next year.

The Don Juan CSG Project is located immediately west of Sunshine Gas Ltd’s Lacerta CSG Project. The Lacerta Project currently has certified methane gas reserves of 469 PJ (2P) and 1097 PJ (3P).

Bow interprets the primary CSG fairway continues west from Lacerta extending into the Don Juan Project area where it overlies about 900km² of the interpreted fairway.

Bow’s Phase 1 exploration/appraisal program consists of flow testing the three initial pilot wells, and assuming positive results, coring and additional pilot wells as required to achieve commercial reserve certification over a target area of 463km².

The planned timing for the commercialisation of the Don Juan CSG Project coincides with the projected increase in demand and resultant upward pressure on prices for natural gas in the Eastern seaboard.

Successful gas reserve certification and subsequent gas sales from this CSG project or any successes in Bow’s oil exploration drilling program due to commence early in 2008 in its Cooper-Eromanga and Bowen-Surat Basin project areas in Queensland have the potential to add substantial shareholder value over the next 12 months.”

Management were on the money last week, solid future infront of Bow in my opinion, any other thoughts out there?

Fridays announcement
Drilling Operations at the Don Juan CSG Project Continues

The directors of Bow Energy Limited (Bow) are pleased to announce that Taringa South-1, the first well of a planned three well (2 firm plus 1 optional) Don Juan CSG (Coal Seam Gas) exploration drilling program north of Roma (Bow 45% and operator), is at 78 metres depth where surface casing has been successfully run. Current operations are rig repairs.

Following completion of the rig repairs, the plan is to air drill into the primary coal seam targets over the weekend. The Joint Venture plans to case and suspend the wells as future pilot production holes in order to carry out flow and production testing. Assuming positive results of the initial pilot wells, a
process of reserve certification should commence early in 2008.

Share price has been showing support around .175 - .18 still CSG drilling began, upon completion of the wells and the reassurance there is economic gas in the field should get this one moving out of its sideways trend.

Bow is also looking to advance with farm outs for the Central Eromanga prospect before the end of the year, which will add to its current drilling campaign in the January - June with Santos.

ASX Announcement
12 November 2007
First well of the Don Juan CSG Project flows gas at 370,000 cfd

The directors of Bow Energy Limited (Bow) are pleased to announce that the first exploration well of the Don Juan CSG (Coal Seam Gas) Joint Venture (Bow 45% and operator), Taringa South-1, is at a depth of 188 metres. A test at 145 metres over the open hole section of the well flowed methane gas to surface at a stabilised rate of 370,000 cfd with 57 psi flowing pressure using a ½” orifice. Post gas flow testing water rate was estimated at 407 barrels per
day.

The current operations are wireline logging and completion preparations.
Taringa South-1 is the first well of a planned three well (2 firm plus 1 optional) CSG exploration drilling program.

The Joint Venture plans to case and suspend the initial exploration wells as future pilot production holes in order to carry out flow and production testing. Assuming positive results of the initial pilot wells, a process of reserve certification should commence early in 2008.

The nearest natural gas pipeline is situated just 8 km east of the permit.
Bow’s Managing Director, Ron Prefontaine, commenting on the CSG exploration results stated: “This an excellent result for Bow’s first CSG exploration well and is a very positive first step for the Don Juan CSG Project which has the potential to place the company on the fast track towards substantial CSG reserves as early as next year.

The Don Juan CSG Project is located immediately west of Sunshine Gas Ltd’s Lacerta CSG Project. The Lacerta Project currently has certified methane gas reserves of 469 PJ (2P) to 1097 PJ (3P). Bow interprets the primary CSG fairway continues west from Lacerta extending into the Don Juan Project area where it overlies about 900 square kilometres of the interpreted fairway.

Bow’s Phase 1 exploration/appraisal program consists of flow testing the three initial pilot wells, and assuming positive results, coring and additional pilot wells as required to achieve commercial reserve certification over a target area of 463 sq km.

The planned timing for the commercialisation of the Don Juan CSG Project coincides with the projected increase in demand and resultant upward pressure on prices or natural gas in the Eastern seaboard. Successful gas reserve certification and subsequent gas sales from this CSG project or any
successes in Bow’s oil exploration drilling program due to commence early in 2008 in its Cooper-Eromanga and Bowen-Surat Basin project areas in Queensland have the potential to add substantial shareholder value over the next 12 months.”


Well that was unexpected to be so soon about 5 mins after my above post it went PRE_NR, very positive announcement for BOW....

Just hit blue skies .25 the best is yet to come with more CSG pilots and the continued dewatering of the wells in the coming weeks....

surfingman said:

Just hit blue skies .25 the best is yet to come with more CSG pilots and the continued dewatering of the wells in the coming weeks....

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Market certainly likes it too bro' - well done.
Dropped it off my watchlist a couple of weeks ago, had been watching the options for ages

I wish I have bought it when it was 9c in August. Those who stick to it really deserve the gain.

This does look to be another AOE story. Hardly surprising given the company's roots and Executive committee. The only shares I hold were from the AOE spin off some time back. I wish I had've watched Surfers on going research now... very well spotted!!! I don't think it's over for this one looking at the project timeline you've posted earlier.

rogue_investor said:

I don't think it's over for this one looking at the project timeline you've posted earlier.

Click to expand...

The heads are long term for me, might try a few trades with oppies.

The CSG well #2 should be reported in around 11 days or less I would imagine, thats how long it took well 1 (the drilling rig also needed repairs for well #1).

A retrace today but its expected with a move like yesterdays, plenty to look forward to this year and early 08... With 20c ex options expiring in March there is a lot going on around this time which should get them over line and $3mil capital for BOW...

I wish I have bought it when it was 9c in August.

Click to expand...

I'm just a small time investor rather than a trader but I like to follow the forum to get information & ideas! I tried to get 10,000 of these at 9 cents but only managed to get 4,303 - IOW not many people wanted to sell.

I was also toying with the idea of buying 100,000 options when they were only 2 cents - unfortunately I did nothing. Could have made a nice profit selling that many yesterday

Whoops! I see now that I should have used the Wrap function at the top of the comment box. The blockquotes I used work everywhere else I post comments