MHL - Monitor Energy

[YOUNG_TRADER]

Just a quick thread start,

600m shares + on issue

Primary focus Oil and Gas in Kyrgyzstan, trying to emulate CIG's success in Kazakstan where it got STO to farm in,

Maybe adding Uranium licences to portfolio of assets per last presentation

Running nicely today

 

[timelord]

Have put a little on this one to see if it will fly. Where do you think they are looking for the U? Hopefully not QLD.

 

[sting]

Have put a little on this one to see if it will fly. Where do you think they are looking for the U? Hopefully not QLD.

I have it on fairly good authority that the QLD Gov is backing down on its stance on U mining, it wont be open slather but a few prospective mines will shortly get the go ahead

 

[timelord]

Anyone following this? Seems to be erratic. Only a spec on my part but unsure how much longer? My move it to RMG??

 

[Broadside]

Have put a little on this one to see if it will fly. Where do you think they are looking for the U? Hopefully not QLD.

up 0.006 to 4c today on 20mil volume. Interesting company, they also have oil and gas prospects in the region and the directors have a good track record.

Monitor Energy acquires uranium exploration project in
Kyrgyz Republic
Highlights:
- Monitor awarded 100% interest in uranium exploration licence coving 27,200
hectares in the north-eastern Kyrgyz Republic.
- Exploration work in the area with detailed geological mapping, surface and
underground sampling and radiometric surveys to commence shortly.
- This acquisition further strengthens Monitor’s significant presence in the region.
Australian based resources company Monitor Energy (ASX: MHL) is pleased to
announce that the Company has acquired 100% interest in a new uranium exploration
licence in the north-eastern region of the Kyrgyz Republic. The license is issued to its
wholly owned, locally registered subsidiary Issyk-Kul Energy.
The Kalmaksu licence is valid for two years between 4 May, 2007 and 4 May, 2009. The
licence covers 27,200 hectares (272 square kilometres) of land and is located north of
Lake Issyk-Kul. It is also in close proximity to two of Monitor’s four existing petroleum
exploration licenses, which total an area of 9,900 square kilometres.
Monitor believes that the company’s new licence is located in a highly prospective area
for uranium as historic exploration data of the Kalmaksu licence area, including
mapping, geophysics surveys and sparse drilling, has identified zones of mineralisation
for uranium as well as molybdenum, lead and sliver.
The Kyrgyz Republic has a history of uranium mining, with production of approximately
3,000 tonnes mined up until the 1970s. Advanced exploration has been previously
conducted by Soviet geologists but limited drilling was carried out.
The company intends to expedite its uranium exploration program in the region, which
will include detailed geological mapping, surface and underground sampling and
radiometric surveys to determine drill targets.
The growing global focus on alternative energy sources has seen uranium prices reach
record levels.
Level 2, 41-43 Ord Street West Perth WA 6005 Australia
PO Box 1440 West Perth WA 6872 Australia
Ph: +61 8 9211 1555 Fx: +61 8 9211 5700
ABN 25 009 121 644
The Kyrgyz Republic is well located to take advantage of increasing demand for
uranium in China and Japan. This is underscored by the recent agreement between
China and Japan to expand China’s nuclear power station capacity by around 30 new
power reactors by 2020. Japan also intends to add new power stations, but at a slower
rate of growth.
Monitor has a strong focus on energy opportunities in the Kyrgyz Republic and beyond.
Current oil and gas technical work in the area includes new age interpretation of existing
seismic data in the southern license areas, which has indicated several large untested,
four way dip anticlines with geology similar to both the adjacent Fergana and Tarim
basins. The company is currently in negotiations with geoscience field data acquisition
contractors to obtain modern geophysical data to assist with prospect development.
About the Kyrgyz Republic
The Kyrgyz Republic is a central Asia country of immense natural beauty and achieved
independence in 1991, after the collapse of the Soviet Union. The country has a
population of approximately five million and is divided geographically, north-south by the
Tien Shan mountain range, which runs east-west.
About Monitor Energy
Monitor Energy is a Perth-based energy company which trades on the Australian Stock
Exchange. The company holds four petroleum exploration licenses in the Kyrgyz
Republic, two in the southern At Bashi district of the Naryn province, and two in the
northeast near Lake Issyk-Kul. The addition of the Uranium license underscores the
Company’s commitment to energy resource opportunities.
More information is available at Monitor Energy’s website: www.monitorholdings.com.au
Mr J W Roestenburg
Managing Director

 

[Ruprect]

Pulled back a little in early afternoon, before recovering to .036, with some decent sized late trades. Over 20 million of the 26 million traded today were between .035-.040, so could reasonably expect some support at that lower level in the short term.

Was a relatively late in the day announcement, so 26 million traded is a positive sign. They seem to have some good cash at hand to pursue exploration, and the country does have a record of Uranium production.

Will see what the market brings tomorrow. As the market takes in the announcement, it might provide for a re rating.

 

[timelord]

Pulled back a little in early afternoon, before recovering to .036, with some decent sized late trades. Over 20 million of the 26 million traded today were between .035-.040, so could reasonably expect some support at that lower level in the short term.

Was a relatively late in the day announcement, so 26 million traded is a positive sign. They seem to have some good cash at hand to pursue exploration, and the country does have a record of Uranium production.

Will see what the market brings tomorrow. As the market takes in the announcement, it might provide for a re rating.

I wonder where it will hit resistance, very high volume yesterday? Hopefully another good day, today.

 

[mr_delta]

Trading Halt......

Announcement on Thursday - 14/06/2007. Hope it is something positive....

Does anyone have any idea what it could be?

 

[YOUNG_TRADER]

Guys,

Just a quick post, in a rush, have been really busy

MHL looks interesting, I've bought some,

Proper research and info to follow when I get a chance,


Cheers

 

[YOUNG_TRADER]

Apologies guys,

Still haven't had time to write up research, too busy buying today :

I'll try and do it tonight or tomorrow at the latest,

Brief summary,

MHL being called "The cousin of CIG" as its where CIG was 12months back, CIG drilling a well atm, if it hits oil then MHL will go nuts

On the verge of farming out the oil licences to a major per annual report

Drilling the Uranium licences soon

Warrick Grigor very bullish on it


Cheers

 

[mick2006]

As a holder of CIG I was quite amazed when YT put me onto MHL "the little cousin of CIG", I couldn't believe that in the market these days you could come across a stock that is so heavily discounted to the value of its landholdings.

Without going into too much detail as no one does it better than YT, for those who have been following CIG, MHL is just a younger and not as mature version with a market cap of just $20 million compared to $160 million for CIG.

For those who don't know about the Kyrgyz Republic it borders China and is currently the most sought after country on the planet for oil/uranium exploration ground. Recently companies from both Canada and Australia have paid in excess of $30 million for uranium exploration tennements which are considered less prospective than that of which MHL is holding. That $30 million plus is greater than the whole market cap of MHL.

Not too mention the 11500 square km's of prime oil/gas exploration ground which companies worldwide are fighting to get their claws into.

MHL's oil/gas tennements lie just across the border from China's massive Tarim Basin which has current reserves of 170 billion barrels of oil, and are thought to have similar prospects for a major oil discovery as that of the Tarim basin.

As YT will surely outline in his research the current holding value of MHL's 2200 sq km's of uranium tennements and their 11500 sq km's of oil and gas tennements would be currently worth somewhere between $100-300 million dollars, compared to a tiny market cap of $20 million.

The value of their land holding alone would put a value on the company of somewhere between 15-50c and thats without the potential massive oil discovery.

Can't wait to see YT's research, it is rare to find a company so fundamentally undervalued as MHL compared to its peers, for all those who don't mind carrying a few spec's in your portfolio it is well worth a look.

 

[jtb]

As YT will surely outline in his research the current holding value of MHL's 2200 sq km's of uranium tennements and their 11500 sq km's of oil and gas tennements would be currently worth somewhere between $100-300 million dollars, compared to a tiny market cap of $20 million.

The value of their land holding alone would put a value on the company of somewhere between 15-50c and thats without the potential massive oil discovery.

Gee Mick, thats sounds like good dirt................................

Gotta say I watched with disgust CIG's run from a descending triangle break from 5 cents in late May to 15c

I got a tip, looked at the stock on issue and then ignored the chart.

As you say this crazy vodka country seems to be getting very popular atm.

Oil side of things has pricked my interest.
Daily particularly shows that she didn't want to sit below 3c for long, imagine she'll go back to 4c soonish.

A farmin announcement may be interesting?

 

[mick2006]

there are three main things that will drive MHL in the short term

1. uranium drilling results (with grades up to 1.4% could surge on good news)

2. a JV announcement with a major oil company (judging by the full year accounts we won't be waiting long, this has serious potential to make MHL a multi-bagger as investors will discover the potential of what they are sitting on, once one of the big boys jumps aboard)

3. Due to the Kyrgyz Republic link any company releasing good news out of the country will have an upward ripple on the MHL shareprice due to proximity issues (for instance if CIG announce an oil find early next week MHL will also run due to their oil potential, as YT highlighted)

 

[YOUNG_TRADER]

Well its running again today,

Still haven't done my report, am doing it now, gimme a few hours ,


Attached is Grigors view, as well as the company's statement in the annual report regarding the Kyrgz Oil and Gas projects

Brief summary,

MHL being called "The cousin of CIG" as its where CIG was 12months back, CIG drilling a well atm, if it hits oil then MHL will go nuts

On the verge of farming out the oil licences to a major per annual report

Drilling the Uranium licences soon

Warrick Grigor very bullish on it

 

[KIWIKARLOS]

I think in the medium term we could see the uranium price go down. This is based on the upgraded expansion of Olympic dam where BHP is going to be mining enough U for 40% of world supplies. They reakon this flooding of the market could cause short - medium term price reduction of U.

 

[mick2006]

Good to see the continued strength in MHL today, doesn't surprise given the surge in oil prices overnight, the longer the prices remain above $80 barrel it certainly gives MHL a stronger bargaining tool when finalising the JV for their Kyrgyz Republic oil leases.

Also for those keeping an eye on MHL also watch CIG the company MHL is being compared to, CIG is due to release the results of their first oil exploration results early next week and if they manage to hit some it will also be very positive for MHL given the proximity of the two companies leases.

 

[prawn_86]

surely this quick a price raise cant be sustained and a pull back is inevitable.

any one elses thoughts. there does still seem to be a lot of buyers, but to have gone up 70% in 3 days suggests to my it has to have a down day soon.

 

[ta2693]

surely this quick a price raise cant be sustained and a pull back is inevitable.

any one elses thoughts. there does still seem to be a lot of buyers, but to have gone up 70% in 3 days suggests to my it has to have a down day soon.

It is up to how fast the information absorbed. Is anyone here using full service broker? If it is possible, give them a call to see how much they know about MHL.

Thank you.

 

[j4mesa]

prawn86,

I do agree with you in the sense of retracement....
but the buy depth is very strong over the sell side

Also yesterday I saw the buiding up of the buy depth from the morning...
I would now rate the technical analysis to be 4.5 out of 5

 

[YOUNG_TRADER]

I think in the medium term we could see the uranium price go down. This is based on the upgraded expansion of Olympic dam where BHP is going to be mining enough U for 40% of world supplies. They reakon this flooding of the market could cause short - medium term price reduction of U.

Kiwik,

This is probably better in the Uranium price thread, but just so you know Olympic Dam expansion won't kick in until 2012 AT THE EARLIEST, given the fact that there's always delays I'd sat 2013-2014

So no effect on Short (ie 6-12month) or medium (1yr-5yr) prices, but long term (ie 5-20yr) prices yes