MDA - Modena Resources

[pan]

Hello, anyone got any info on this stock. Listed last year in November and has risen from the IPO of 20 cents to a new high of 40 cents today. All I know is that it has gas/oil ventures in the USA and some of ventures are tied with GGP.

cheers

 

[pan]

More Info

Prospectus 30 000,000 shares at 20 cents per share.

Raised 6 Mil.

MC at 38cents- $11400000

Prospects-

Bullseye- 15% interest operated by Golden Gate Petroleum in Louisiana USA. In activity reports believed to start production in May 2008.

Wilson 10% Interest, Padre Island, Texas USA.

South Lost Hills 10% interest- Kern Country, California, USA.

Armstrong Farm Lease 25% interest - Kenedy County, Texas, USA

 

[Spec-Invest]

Hey,
Modena Rescoures is travelling very strongly at the moment 100% increase since its listing in mid November, surprisingly there hasnt been any announcements of late, it seems that there is a few people in the market who know more than the general public.

Armstrong well was reported to be drilled to a depth of 9,000 feet on the 16th of January, to date there has been no announcement yet only 2,000 was left to be drilled, is the public being left out of the picture? I'm sure with BNP as the operator it would be past completion and being logged by now.

It will be a very interesting company which I will definitely keep watching.

 

[pan]

Interesting times ahead.

Another good annoucement today for Modena in regards to Manzano. 25% rise in sp

By David Haselhurst, ninemsn Money source: http://money.ninemsn.com.au/
April 23, 2008,
View portfolio


Modena listed on the ASX on November 21 last year to acquire interests in oil and gas projects in California and Texas. It has since reported some early successes including early initial production revenue.

The company’s float involved a non-underwritten issue of 30 million shares at 20c to raise $6 million. The float took issued capital to 63 million shares, of which 20 million are escrowed as vendor shares. Net cash on listing amounted to $6 million plus $600,000 in tradeable investments.

The board is led by experienced deal-maker Peter Hampshire, a Sydney-based sometime broker and investment banker, plus executive director and project manager Craig Willis and chartered accountant Neville Bassett.

Their initial investments were:


A 10% working interest in the South Lost Hills project in Kern County, California, purchased from Nuenco NL for $100,000 cash plus an expected $1.25 in further development costs, and
A 10% working interest in the Wilson project on Padre Island, Texas, bought from the American-owned Kindee Oil and Gas for 20 million vendor shares plus future expenditure of $1.07 million.

Although those projects came with the prospectus, initial field activity has blossomed from new deals entered following the float. In particular, the company has formed an alliance with BNP Oil and Gas Properties Ltd, a company controlled by Texas petroleum engineer and wildcatter Paul Black.

In their first deal in February, Modena signed up for a 12.5% interest in the Manzano Prospect, in which BNP is operator and a 52.5% equity holder. Under the terms of the deal, Modena paid $US100,000 up-front plus a commitment to pay 16.63% of the initial well cost, with Modena’s share estimated at $US914,650. Thereafter it would be liable for 12.5% of well costs on a leasehold area covering more than 1.5 square miles.

On April 7, Modena reported the first well (spudded on February 2) delivered a strong gasflow and within seven days it was connected to the sales grid with a daily flow rate of 3.1 million cubic ft plus condensate from a perforated 6ft (2 metres) section of the 10,500ft hole, which was drilled directionally out of the rig site to the eastern part of the indicated reservoir.

Better, Modena’s share of the drill cost was about $US600,000 and its 12.5% interest should see it gross $US1.2 million as its share of sales (net of royalties) in the first 12 months with expectations the well will remain a revenue producer for another five years.

Before the drilling of the first well, three wellhead sites were prepared, each 5 metres apart, so that the rig could drill the first hole, then move just 5 metres to spud an appraisal well for a directionally drilled hole to the south of the block. A result for the second well should be known this coming weekend, with an estimated cost of Modena for its share of just $US350,000.


Under another deal, Modena will participate in three shallow wells in Jackson County, Texas, with an expected back-to-back drilling time of seven days each beginning on April 29. The deal involves Modena paying 60% of $US327,839 to Seisgen Exploration Inc for past exploration expenses plus 60% of the first three well costs with operator BNP.

In an area where the success rate of drilling is acknowledged at about 70%, the company is looking forward to a well cost of $US250,000 each for its share then a return over perhaps a couple of years of $US1.8 million/well before the structure is exhausted.

The company has also farmed-in for a 15% interest in the planned Bullseye prospect in Louisiana on a 1700-acre structure with estimated potential (P50 potential reserves) of 12.5 million barrels or oil and 33 billion cubic ft of natural gas. That is expected to spud at the end of April and if it comes in at the top end of hopes it will be a company maker.

To help finance these moves since the float, the company has issued $2.5 million in 12% notes with $1 million convertible at 35c and $1.5 million at 45c in February, 2010.

After the float at 20c last November, the shares traded up from a low of 23.5c to a high of 48c before sliding in the recent market malaise to 35c last week. As a further incentive to punters, the company remains pregnant with a promised one-for-one options issue at 1c, which will add $630,000 cash to the bank. These options will be well worthwhile with a planned issue price at 1c for exercise at 20c by June, 2010, but the company is expected to announce an “ex” date for entitlements within the next couple of weeks. I’ve bought 20,000 Modena at 35c each.

Thoughts?

 

[Spec-Invest]

Over the last few days we have seen to share price fall under .30c which has resulted from the options being issued, hopefully the Sp can correct itself depending on the armstrong well being completed by hopefully early next. bulls eye will also be a make or break situation. but the reward is definatly outweighing the risk factor, at the current price it is a good buy.

 

[Spec-Invest]

it has definatly taken another battering today, although there has been little volume. at its current price MDA is a good investment, considering the upcoming announcements

 

[Spec-Invest]

is there any one else on here that may like to shed some light/interest in mda? hopefully there is some news in the next coming week

 

[Spec-Invest]

8 July 2008
Market Release (via electronic lodgement)
BULLSEYE PROSPECT: JUMONVILLE #1 PROGRESS REPORT
Jumonville #1 Bullseye Prospect, Iberville Parish, Louisiana, Operator 43.33% WI
The Jumonville #1 well has successfully had a 5 ½” liner set at 12,050ft, which is approximately 300ft above
the primary target. In order to more effectively drill and test the primary objectives, it has been decided to
continue drilling with a smaller workover rig. As a consequence we have released the existing drilling rig and
will continue drilling with an already contracted smaller rig.
The forward plan is to drill out with 4 ½” bit using the smaller rig which provides a more effective platform to
finish drilling operations and facilitate testing. The current Helmrich & Payne rig 72 is estimated to be off
location by Thursday and Key Drilling will have their rig 88 on location ready to drill by Saturday.
The Company anticipates 3 days to drill the next 500ft to below the primary objective in the Miogyp also
penetrating the Camerina reservoirs above. With a workover rig on location, the testing program can begin
immediately.
In drilling the last ~1,000ft of borehole numerous minor gas shows were observed. This provides
encouragement that the primary Miogyp objective is contained in a working hydrocarbon trap.
Our primary objective remains the Miogyp interval. Depending on initial Miogyp testing results and borehole
constraints, a determination will be made whether to drill deeper and test the Cib Haz interval (~12,900ft).
Partners in the Jumonville #1 well* are:
Golden Gate Petroleum Ltd (ASX code: GGP) 43.33% WI
Modena Resources Limited (ASX code: MDA) 15.00% WI
Pantheon Resources PLC 15.00% WI
Eastern Advisors 20.00% WI
Nuenco NL (ASX code: NEO) 6.67% WI
* Working Interests are reflected prior to back-in rights of project vendor.
On behalf of the Board of Directors

more good news - we have excellent operators - good to see they are making sure they are doing it right. also excellent indications of the Miogyp objective is contained in a working hydrocarbon trap.

not long until this well will be complete, definate northen rise in the SP can be expected

 

[pan]

http://money.ninemsn.com.au/article.aspx?sectionid=2338&subsectionid=79751&id=621018

Speculators Article


By David Haselhurst, ninemsn Money
August 27, 2008,


We topped up our holding in Modena Resources after its deep well, the Jumonville 1 on the Bullseye Prospect in Louisiana, USA, reached its revised targeted depth of 12,440ft with “significant amounts of light oil” observed in the drilling mud pit and high gas readings.

Modena has a 15 percent stake in the well, while the operator, Golden Gate Petroleum (GGP.AX

loadingGGP.AX , ) has 43.33 percent. The market last week rewarded GGP with a 9c rise to 30c in the share price over the week, while Modena’s shares firmed from 18.5c to 24c. Modena’s options, however, traded between .05c to a week’s high of .053 then closed down at 0.51 on a week’s turnover of 943,500. The options, issued at 1c two months ago, are exercisable at 20c by June 30, 2010.

This unenthusiastic response to the options, which we already hold (see table), promoted the buying of another 40,000 at week’s close of 5.1c. On Monday we added another 20,000 at 8c to our initial holding of 20,000 acquired at 1c. So we now hold 80,000 options at an average price of 4.8c.

When the Jumonville 1 well was first proposed on the 1700-acre structure the operator estimated potential (P50 or mid-range potential reserves) for 12.5 million barrels of oil and 33 billion cubic ft of gas. It was planned to test three horizons, with the primary objective being to Miogyp sands.

The rig entered those sands last week with high pressures of 10,000 psi (pounds/sq. inch) and “significant” quantities of light oil in the drill mud pits. Indeed, I hear some 300 barrel of oil came up with the mud with talk that possibly half the reservoir’s potential is contained in the Miogyp sands.

The operator on Monday announced: “Given the high pressure conditions of the borehole from the Miogyp sands and surrounding shales, the decision has been made to run and cement a production liner which was completed on Saturday (August 23).

Cased hole logs were to be run yesterday (Tuesday, August 26) while work continues on installing completion equipment in preparation for production testing. I understand that running logs through the well casing is not as conclusive as a flow test, but indications are the reservoir sand intersected is 30-35ft thick.

While the operator confirms "a strong indication of a commercial discovery" shareholders may have to wait a bit for flow rates and reserve assessments from logging and flow testing.

If hopes are confirmed, Modena shares and options should be sharply upgraded. The company has on issue 66.49 million shares which sold as high as 48c earlier this year before succumbing to the current market malaise. It also has raised $2.5 million in 12 percent notes. Of those, $1 million is convertible at 35c and $1.5 million convertible at 45c (or the lesser of 85 percent of a five-day weighted average market price.

At June 30, cash was down to $221,000 but the one-for-one options issue in July added $630,000 cash. Nevertheless, it would not surprise if the company’s share price premium picks up that an issue or placement could be on the horizon.

 

[Nicks]

MDA - Modenares

Just found this one - looks like it is sitting on a commercial grade oil discovery. SP has been moving steadily up in the last few days of trading. Full evaluation is currently being completed, then I imagine a further confirmation would be delivered to the market.

 

[Nicks]

ok, so they just announced that the findings are 35% greater than expected! - evaluation of this due in the coming week. Very very exciting.

 

[pan]

ok, so they just announced that the findings are 35% greater than expected! - evaluation of this due in the coming week. Very very exciting.

Both GGP and MDA are going to be big winners out of this by the looks of it... 35% more oil than expected is great news!

 

[Nicks]

I've bought in purely on the basis that should the evaluation come out positive, and indications thus far seem to keep indicating it will, the valuation on this stock would be huge.

 

[Nicks]

From GGP Market release:

Golden Gate Petroleum believes the total potential reserves for the Bullseye prospect is close to 40
million barrels of oil equivalent.
The Company is very excited about the large potential of the Bullseye prospect, however it does stress that the
commercial significance of the discovery is yet to be determined and will be a function of a planned production
testing operation over the coming week.

MDA has 15% interest.


So - what I am curious about is how can 40 million barrels not be of commercial significance? is this just language for the company covering all bases and being diligent?

 

[prawn_86]

So - what I am curious about is how can 40 million barrels not be of commercial significance? is this just language for the company covering all bases and being diligent?

If it cant be extracted at a profit then its not of commercial significance. Im not a geo, but it depends on the structure of the feild, the porosity, water levels, sands etc etc

 

[Nicks]

Well, if all goes well then the upside potential could be huge. But then - thats the nature of trading, putting your money on the line with the prospects of making huge gains. We await the evaluation.

 

[Ben10]

Hrmm, wondering if i should off load my small stake in ILF and buy into this for some quick gains....

Suggestions??

 

[JTLP]

Hrmm, wondering if i should off load my small stake in ILF and buy into this for some quick gains....

Suggestions??

Does not compute...does not compute.

Nobody is allowed to give financial advice...they must be a financial planner.

Weezle Wazzle does not compute :

 

[Ben10]

^ lol

Yes yes i know but i seem to be stuck to this fence i am sitting on and was digging for some prodding

 

[Ben10]

Hrmm well my decision to buy into MDA has been put off for now due to "The storm of the century" about to hit!