ESG - Eastern Star Gas

[YOUNG_TRADER]

Posted this on the Santos thread,

CSG article about Shells entry into the area and more to come,

Relevant to ESG amongst others I'd think

http://www.theaustralian.news.com.au/story/0,25197,24041984-5005200,00.html

"Royal Dutch Shell's global head of power and gas, Linda Cook yesterday said the super major was still looking for new CSG openings in Australia to add to its recently added stake in Arrow Energy.

"We've had that (CSG) on our radar for some years," Ms Cook said during a visit to Australia. "

 

[loopy_louie]

On such a positive day in the asx, can somebody explain why ESG finished 10% down????

Just when it looked like it was going for another run...

Comments appriciated.....!!!!

I disclose stock

 

[redsmartie]

Eastern Australia projected gas production



ESG has had a lot of exposure lately, it is one of the few coal seam gas companies with projects in NSW which apparently has a higher gas price than other states, the drop today could be a bit of profit taking, I have a few coal seam gas stocks besides ESG, most have done well, I fished this pretty picture from their web page: -

http://www.easternstar.com.au/markets.html
(quote: - Source: Wood Mackenzie's Eastern Australia Gas and Power Outlook to 2025)

 

[Jimminy]

another nice announcement today to continue to build a floor under the sp of ESG.

HoA for examining connecting into the Mooma Sydney gas pipeline.

Dominoes to continue to fall into place with stock.

Jimminy.

 

[YOUNG_TRADER]

Yeah ESG ticking off all the boxes,

Impressive agreement, ESG soon to be a producer by the looks of it, Casey has won my confidence as a good MD Grace, his actions speak far louder than most MD's words

Narrabri Coal Seam Gas Secures Early Access to NSW Gas Market
Eastern Star Gas Limited (ASX: ESG) together with its joint venture
partner, Gastar Exploration Ltd (AMEX: GST & TSX: YGA.TO) is pleased
to announce it has entered into a Heads of Agreement with the APA
Group (APA), owner of the Central West and Moomba Sydney Gas
Pipelines. Under the HoA, options for early delivery of coal seam gas
from the Narrabri area into the NSW gas market are to be
investigated.
Mr David Casey, Managing Director of ESG said “we are going to work
with APA to develop arrangements that it is envisaged will involve
construction of a new pipeline lateral to connect the Narrabri coal
seam gas project into APA’s existing gas transmission pipeline
system”.
“By making use of existing infrastructure, early market access can be
secured whilst complimenting later large-scale gas supply
arrangements envisaged by our existing MoU’s with Macquarie
Generation and Babcock & Brown” Mr Casey said.
“Securing early market access is of particular interest since, on
present projections, gas production rates from the multi-lateral pilot
production wells to be drilled by the joint venture later this year will,
by around mid 2009, be in excess of what can be used in the Wilga
Park Power Station, even with the proposed expansion of the power
station. Having direct access to the NSW market will allow other
opportunities to be pursued”.
Initially gas will be delivered to market via APA’s Central West
Pipeline with APA’s NSW pipeline system subsequently expanded as
gas production and markets grow. By matching gas production,
pipeline and market requirements in this manner, capital efficiency is
maximised and favourable gas transportation tariffs realised.
Mr Casey commented that “the Narrabri coal seam gas joint venture is
delighted to be working with the APA Group, which is uniquely well
placed to provide gas transportation services at an early opporunity”.

 

[grace]

Yeah ESG ticking off all the boxes,

Impressive agreement, ESG soon to be a producer by the looks of it, Casey has won my confidence as a good MD Grace, his actions speak far louder than most MD's words

Yes, and don't discount the ex-Deputy PM involvement either (you know the one I don't mind looking at...bit old for me though.

Chops comment about being a bit slow....well, I believe the red tape to drill for csg in NSW has been slow in comparison to QLD, and I have heard the NSW Govt acknowledging that. The NSW Govt says that it is catch up time, given QLD has the lead.......but we are the Smart State up here aren't we

 

[YOUNG_TRADER]

Was speaking to a mate today who reckons that this pipeline deal was a key milestone for the company and may attract broker comments, will be interesting to see what is going to be said,

Also has the deal attracted any decent media attention yet?

I sorta guess its like an Iron ore miner signing a rail agreement and that certainly is a milestone for the Fe guys

 

[grace]

Drilling report out with Dewhurst #7 spudded and ready to go. Thought I might just mention a big trade yesterday. 10 mill @ 0.58. I'm interested to know who bought them.....

 

[redsmartie]

This company has seen a quick and dirty customer base, with plenty of consumers ready to suck that juice from the ground and a connection to the Moomba pipeline will do just fine Ta.

 

[agro]

so much for the ramp up from the above posts %%

this has only been going in one direction - down, even on good days like today

 

[kingbrown]

so much for the ramp up from the above posts %%

this has only been going in one direction - down, even on good days like today

As most of the market has gone DOWN !
i think that comment is a bit unfair ?

I think ESG has enormous potential but in this market everything is just getting hammered
look at our famed BHP yesterday ?

Things will only get worse on our market imo

Just sitting on that fence like many others
awaiting those CSG bargains to roll on in
and ESG is looking mighty attractive imo

 

[redsmartie]

Oh wow, customers not paying the way yet, a wait and see for ESG, could be plenty of profit taking going on as well, no ramp just flat trading range.


:ald:

 

[pointr]

On a fundamental note concerning ESG future potential (not a ramp-up) APA Group-a pipeline owner today announced it had acquired the central ranges pipeline which passes through the gunnedah basin. ESG, its association with APA and the future of the basin as an energy provider gets a positive mention. These things may not make us a dollar in the current downturn but they do give perhaps give a glimpse of what may be in the future.

 

[pointr]

Today in a Newcastle paper and I'm sure others, there is an 'Exhibition of Environmental Assessment' notice relating to the proposed Qld to Hunter gas pipeline passing through the Gunnedah region. I'm sure this has been announced previously but its another positive for ESG should it proceed. So we've had the 'tech wreck' and now 'the financial engineering wreck' perhaps at some point in the future people may see value in energy companies doing real things and building resources.

 

[Jimminy]

Pointr,

the market is sceptical about the Qld hunter pipeline due to the large amount of csg needed for LNG committments in Qld.

Hence the sp has wallowed of late with ESG as we are separate to the LNG circus in Qld....

That's not to say it won't happen, but I'm in the camp you won't see it for a long time.

However, ESG is still a good investment in my opinion at these levels.

When it seems like the sky is falling in around you and ESG comes back to 30-50c range they are the times to buy. Been proven countless times over the past 2 years.

 

[pan]

2. Babcock & Brown (which is looking like a sinking ship) has an MOU for 40pj/pa with ESG....the market panicked yesterday. Well some panicked anyway.

Can someone explain the MOU / pj/pa? with BNB and is their falling share price effecting ESG price. Thanks

 

[agro]

A new announcement has been released for ESG
Summary: Bibblewindi Multi-lateral Well Spudded
Announcement number: 533624
Release time: 12/12/2008 10:24:00 AM
Price sensitive: Yes


Eastern Star Gas (ASX: ESG) is pleased to announce on behalf of the
Narrabri Coal Seam Gas Joint Venture (ESG 65% with Gastar
Exploration Ltd, 35%) that its new, state-of-the-art Schramm TXD
drilling rig has spudded the first well of the Bibblewindi multi-lateral
pilot. Bibblewindi 12, a vertical production intersection well, was
spudded this morning.
The multi-lateral wells have been designed to take advantage of the
unique, vertically-fractured architecture of the target Bohena coal
seam. It is predicted that the multi-lateral wells will achieve gas
production levels up to 10 times that achievable with vertical, fracture
stimulated wells similar to those used in the existing production pilots.
The objective of the 2008/09 exploration programme, and the multilateral
wells in particular, is to accelerate upgrading of gas reserves to
achieve a target level of 1,300 PJ of 2P reserves by the end of 2009.
Mr David Casey, Managing Director of ESG, said “the commencement
of drilling with the Schramm is a major step forward in the
optimisation of coal seam gas production in PEL 238 with a view to
certifying sufficient reserves to fulfill high value gas sales
opportunities”.
David Casey added that “gas from the joint venture’s new multi-lateral
wells will be delivered through the newly approved flowline to the
Wilga Park power station which is currently being expanded
progressively as gas production increases, with the first new 3 MW
generator up and running by May 2009.

 

[Jimminy]

I'm not a technical person, but this seems to have "broken out".....

Based on the figures from the the AGL / Gloucester deal, ESG on market cap value is significantly under it's potential enterprise value.

I'd tend to agree, but I am biased on this stock...

 

[Boggo]

I'm not a technical person, but this seems to have "broken out".....

Certainly has Jimminy, target of 55c.

Seems to be a lot of activity on gas etc stocks, SGL is another.

Boggo

 

[Logique]

AOE is in a trading halt this morning, pending an acquisition.

However ESG and BBP are still trading, although BBP has announced potential purchasers for it's businesses.

Arrow's acquisition target is rumoured to be Pure Energy (PES) which is also in a trading halt.