MMR - MEC Resources

[Donga]

ouch. this may be the last post i ever do after such a a stinging rebuke. i had no idea that your research was the only real research. I didn't realise i had to have your blessing to jump aboard. guess I'll just go hide my head in shame.

Take no notice of me petal and expect some chartists will appreciate your contribution. And I don't pretend to have all the research bases covered

After review of charts presented on this site, have seen little evidence that charting by itself, being the anal crunching of past stock indices, provides much value without a good understanding of the company situation in an assessment of the market relative to the FUTURE.

By all means jump aboard fella. I topped up with some more MMR yesterday. And hey, I'm hoping your interpretation of the chart signals is right

 

[Riddick]

Take no notice of me petal and expect some chartists will appreciate your contribution. And I don't pretend to have all the research bases covered

After review of charts presented on this site, have seen little evidence that charting by itself, being the anal crunching of past stock indices, provides much value without a good understanding of the company situation in an assessment of the market relative to the FUTURE.

By all means jump aboard fella. I topped up with some more MMR yesterday. And hey, I'm hoping your interpretation of the chart signals is right

thats ok, i'm not that sensitive. I am certainly not a chart addict. I never invest in anything I don't research on a company level first. charts are just another tool. they have their purpose, are definitely not oracles. you are totally right by alluding to the future as unreadable. case in point is the recent debacle. no one had posted one so i thought i would.

I hope we're both right as I bought in too, a goodly amount. so many positive reasons to get on board at what I'm confident will turn out to be an absurdly cheap price.

nice one in the first instance. well played

 

[Donga]

This was lodged this arvo after the bell...

28 September 2009
Companies Announcement Office
Australian Securities Exchange Limited

Dear Shareholder,

ANNOUNCEMENT TO ASX
EXTENSION OF SHAREHOLDER SHARE PURCHASE PLAN

The directors of MEC Resources Limited wish to announce the extension of the Shareholder Share Purchase Plan to Friday 2 October 2009. The extension will allow for the receipt and processing of applications after the public holiday in Western Australia on Monday 28 September 2009.

Accordingly shareholders are encouraged to submit their Acceptance Form for the Shareholder Share Purchase Plan as soon as possible.

The directors of MEC Resources Limited would like to thank all of its shareholders for their continued support.

Yours Sincerely
David Breeze

This is interesting . Am hoping it means that they recognise their two recent announcements were poorly written, somewhat ambiguous and didn't lift the SP so they are going to give shareholders who participated or even held off, another bite. This will work IF they give the market some meaty forward moving news, like who won the oil rig tender or details of the Advent IPO. I initially didn't partake and bought some more MMRO instead, then decided to take up some of the SSPP last Friday.

Be great if they are not really worrying about the Sandgropers

 

[Donga]

The MMR Annual report, released today, makes for fascinating reading. The board is strong and the company has a number of interesting permits other than PEP11 through their majority owned Advent P/L (impending IPO recently announced), especially EP386 and RL1 in the Bonaparte Basin.

Of particular interest regarding recent SP rise of CTP are the following statements "Advent holds a large shareholding in CTP". The CTP Dec 2008 Annual Report discloses Advent as the 2nd largest shareholder with 2.43%. And this one: "Advent reserved its right to claim damages from Central Petroleum and its subsidiaries following repudiatory breach of contract regarding farmin by Advent to Central's permits". CTP went into trading halt today so be interesting if MMR lurks at all

While their recent announcements have been a little lack lustre, their next few could well be very forceful.

 

[Donga]

Great day for patient MMR holders with the SP increasing 37% to 42.5c. Hopefully this is a taste of what lies ahead when the CSIRO summary highlights are released very soon as well as the decision to be announced on Monday by NSW Dept of Environment etc as regards approval to proceed with the pre-drilling site survey, which was referenced in today's response from MMR to ASX.

The following snippets appeared in their recent Annual Report:

"independent confirmation of a thermogenic hydrocarbon source in the offshore Sydney Basin was revealed at the Petroleum Exploration Society of Australia’s (PESA) Eastern Australasian Basins Symposium, 14-17 September 2008. The confirmation of this type of hydrocarbon gas seepage is a significant development for Advent, as active seeps of the nature reported are considered by experts in this field to occur in basins now actively generating hydrocarbons and/or that contain excellent migration pathways" and also

"In additional prospectivity studies of PEP11, Advent has recently interpreted significant new prospective multi-Tcf stratigraphic plays. The Fish and Baleen Prospects and other leads reside in deeper, structural Permo-Triassic targets associated with the Offshore Uplift. Further examination of features in the Cainozoic sediment wedge overlying the Permo-Triassic sediments along the Sydney Basin continental shelf has demonstrated “soft” high amplitude anomalies (reverse polarity to the water bottom reflector) that are observed along sequential seismic lines continuously over considerable (>60 km) lateral NE-SW extent. An example of these seismic features is provided here. The zones of contiguous amplitude anomalous horizons are depicted as yellow polygons in the permit map provided here. Advent has been advised that these newly identified prospective zones are analogous to the Marlim Field in the Campos Basin in Brazil."

The MMR response late today to ASX also mentioned that CEO "David Breeze is currently briefing stock brokers on Advent Energy and the PEP 11 project". Best of luck to all holders in the coming weeks

 

[soren_lorensen]

The MMR response late today to ASX also mentioned that CEO "David Breeze is currently briefing stock brokers on Advent Energy and the PEP 11 project". Best of luck to all holders in the coming weeks

Donga the last bit in your message about the ceo briefing stock brokers, what would that be all about then?

amazing journey for holders had dropped in dribs/drabs over the last 2-3 weeks and then the bang today!

noticed 'BUY' didn't jump as much today

 

[Donga]

Donga the last bit in your message about the ceo briefing stock brokers, what would that be all about then?

amazing journey for holders had dropped in dribs/drabs over the last 2-3 weeks and then the bang today!

noticed 'BUY' didn't jump as much today

Likely a rehash of the Advent presos doing the rounds in September however timing a little more juicy due to impending CSIRO release as well as likely decision from Environment dept. Expect the reality of BUY's minor role in PEP 11 is now better understood, though I've taken a smalller position with them also as they have some other interesting projects on the go. Just a glorious time for many small/mid cap minors

 

[Donga]

Apologies in advance for length of post – don’t intend to go into this detail again. Will try summarise the case for PEP 11 and MMR objectively, and as always pls DYOR.

The board – critical factor for long term investments and don’t expect day traders will be too influential as the stock is tightly held see below. I provide snapshots of two members and suggest punters refer to MEC website for more details on the others.

Chairman Goh Hock was President of Schlumberger Asia - managed their Asian operations including oil field services, outsourcing, financial software and smartcards. Hock was responsible for US$800 million in revenue and more than 2,000 employees spread across 17 countries. In his 25 year career with Schlumberger, Hock held several other field and management responsibilities in the oil and gas industry spanning more than ten countries in Asia, the Middle East and Europe. Hock started as an oil field service engineer in Indonesia in 1980 before moving to Australia where he worked on the rigs in Roma, Bass Strait in and the Northwest Shelf.

Some brief facts on Schlumberger: FY 08 $27.16 billion revenue; 79,000 employees of 140 nationalities, operating in approximately 80 countries.

Mr Ding Guiming - Chairman of Advisory Panel was former Head of Exploration for the China National Petroleum Company (CNPC), directed the exploration activity of more than 20 oilfields all over China. CNPC recently announced $US 86 billion revenue. Was President of the Daqing Oilfield, one of the largest and enterprises in China and has 34 years of extensive successful oilfield experience.

Tightly held - According to Commsec MMR market cap today is $47m comprising of 108m shares (not inc options) and the top 20 shareholders account for 40% (MMR latest annual report).

History of PEP 11 – so much material available so pls DYOR however suffice to say there has been lots of research done on the permit area over 20 years from the likes of Ampolex, Santos, CSIRO amongst others. A good place to get a snapshot is presentation released today, see http://www.mecresources.com.au/newsroom/announcements.html and click on Advent Eco presentation. Other Advent presentations earlier this year have much more detail.

Recent progress – number of important milestones:
o May, tender cycle for drilling rig suppliers commenced
o August, Pareto Securities (Oil/gas expertise, Oslo) was engaged as lead broker to source Advent’s capital needs
o Capital raising conducted in September to raise funds for initial PEP 11 expenditure
o Today announced that Dept of Environment approved next step being site survey

Upcoming announcements – broad dates per releases and enquiries
o Recent CSIRO report has been received and awaiting CSIRO approval before summary highlights are released, likely in next week or so.
o Awaiting approval for initial drilling approval. Application was lodged 21 September, see below, Dept Environment questions been answered and now await decision.
o Final negotiations with rig suppliers underway pending Dept Environment approval

So expect there will be activity off NSW coastline in the next month or so hopefully including first drill rig, if not early 2010. So what are the challenges?

Environment – The recent applications can be read see http://www.environment.gov.au/cgi-bin/epbc/epbc_ap.pl?name=current_referral_detail&proposal_id=5093 re site survey and http://www.environment.gov.au/cgi-bin/epbc/epbc_ap.pl?name=current_referral_detail&proposal_id=5094 re drilling and are very compelling, especially if you consider the need to reduce dependence on coal energy. They also address the environmental considerations, e.g. every species of fish, bird, shark, dolphin etc in the permit area.

Economic – No brainer if proved commercially viable and expect both state and federal governments will be supportive.

Finding the stuff and viability – Who knows whether the supposed resources will be retrievable commercially? But we’re going to find out and in the meantime there will be a lot media coverage and interest in this project. By the time we find out, present holders will have sold along the way and hopefully free carried.

The biggest carrot – MMR has pdf status which means that capital gains and hopefully dividends are tax free. Not only very attractive but some indication of the strategic value placed on the project by the government.

The operating structure is fairly complex, but suffice to say MMR is majority shareholder of Advent, see today’s preso for breakdown and Advent will increase interest in PEP 11 to 85% once they drill the first well, while Bounty Oil BUY will have 15% interest.

Today’s Advent presentation also mentions a couple of other permits which are fairly promising, and I copy post on HC today from Jazzasax “noticed Exoma Energy EXE have asked for a trading halt... have the 100% working interest on Perth Basin. "EP 419 covers 559km² on the north eastern side of the Perth Basin about 10km east of the Beharra Springs Gas Field. Advent has retained a 3% royalty on future profitable production from EP 419."

Conclusion – Who knows where this will lead, but it is a wonderful project with the potential to participate in the development of an East Coast energy megastar.

Pls do not rely on above and DYOR. Best wishes to all current holders of MMR, BUY, GBA & BPH (last two also have interests in Advent).

 

[Donga]

My own littlel world in here. Never mind, here's the latest :

From OilBarrel.com

November 03, 2009

ASX-listed Biopharmica Diversifies In Order To Back Advent Energy’s Hunt For Gas Offshore Sydney

Excitement is building at Australia’s MEC Resources, an investment company with interests ranging from biopharmacy to oil, as one of its investee companies gears up to drill the waters offshore Sydney, where the possible gas resource could top 16 trillion cubic feet.
First, however, there are some corporate issues to be resolved: one of MEC’s companies, ASX-listed Biopharmica will be renamed BPH Corporate and will hold Biopharmica’s existing biotech research as well as a 20 per cent stake in unlisted Perth-based E&P Advent Energy. This move diversifies the risk, with BPH then holding two possible value-adding projects in two very different industries, and creates a structure to bring more capital into the company ahead of drilling. It also helps protect against any low-ball bids from potential predators and should increase shareholder exposure to any uplift in value following a successful well.

Advent certainly believes it is sitting on a substantial project in the PEP11 licence in the offshore Sydney Basin. Over the last two years Advent has reprocessed existing seismic, ranging in vintage from 1981 to 2004, which has significantly enhanced the understanding of the geology. It now reports a prospective P10 unrisked gas resource of 16.3 trillion cubic feet for six prospects and leads in the 8,100 sq km permit, with the P50 and P90 numbers estimated at 5.1 tcf and 1.2 tcf respectively. The largest of these is the Fish prospect, which alone carries a P10 prospective recoverable gas resource of over 9 tcf.

Advent has the right to earn an 85 per cent interest in the project, with its joint venture partner, ASX-listed Bounty Oil & Gas, reducing from 75 per cent to 15 per cent. This would give the unlisted company a major stake in a potentially major gas project in one of the last frontiers in Australia as the waters off New South Wales have long been neglected by the industry. This is ex-Santos and Ampolex acreage: both companies invested in seismic but never committed to the drillbit.

“In the past new South Wales has relied on its vast coal resources for energy but the there is now a desire on the part of power companies, the government and the population to put into place gas-fired power generation in order to reduce CO2 emissions,” explained MEC executive director David Breeze, a stockbroker by trade.

According to Breeze, one third of Australia’s carbon dioxide emissions come from just 12-13 power stations all within a coastal strip 20-50 km wide, stretching from Wollangong in the south up to Newcastle, the largest coal export port in the world. Substitute this cheap but dirty coal with cleaner burning gas and national emissions targets become much easier to meet. This pressure to cut CO2 emissions means there is now a demand for gas in this part of the country, with demand in the Sydney area expected to double over the next 12 years. “The dynamics of climate change have brought about a tremendous opportunity for the company,” Breeze told oilbarrel.com.

The company is now in the final stages of negotiating a rig contract and getting all the necessary approvals ready to drill in Q2 2010. Water depths in the area of interest range from 85 to 120 metres, making this jack-up territory, and with the prospects lying just 20 to 25 km offshore, it would be feasible to build a pipeline connecting to the gas distribution network in Sydney. “The costs of development are remarkably low compared to the alternatives for supplying gas into the Sydney area,” said Breeze.

The necessary capital raising is already underway, with the company looking to raise A$12 million. “The market reaction has been very good,” said Breeze. “There’s been a marked improvement in appetite for investment in Australia, especially for resource projects.”

Should the drillbit prove up this potential, this could be a truly transformational project. The potential resource could not only supply the expanding gas demand of the Sydney region but also justify investment in a floating LNG plant to supply energy-hungry markets across the Pacific Rim. At which point, MEC Resources’ early backing of little-known Advent Energy would really begin to pay off for investors…

 

[Donga]

I'll soldier on with this Don't really care about ramping per se because MMR is not heavily traded and will move on announcements. Fund manager associated with the group advised me last week that various activities were progressing "very very well" and we can expect a series of new announcements in the next 6 weeks.

So my latest update for anyone wishing to look more into MMR:

Been six months since MMR captured serious market attention. SP has held up well, see attached given recent conditions and compared to pre Aug 09 levels. Believe we're on the verge of another level in activity and SP response.

The 1st Feb ann looked a little ho hum though suggest slow reading of the two page update. Various seismic work up announcements have grabbed little excitement, however are critical in determining the rig required, consequent environment considerations and hopefully provide enough evidence for a big player to farm in.

So back to the 1st Feb ann - apart from the reprocessing and drill target selection on the 1st page, draw your attention to some other stuff:

o Drill rig - "at advanced stage" and has been for a long while

o Environment approval - "approvals process is rig specific. Advent environment consultants RPS and other consultants are currently completing a further standard work program for this process"

o Well planning - "Du-el contract staff are currently engaging in the completion of planning, sourcing and contracting ancillliary services and equipment for the well"

o JOINT VENTURE - love this "Plans for the process were matured during meetings with Pareto staff in Perth in Januray" and this..

"THIS PROCESS IS DUE TO COMMENCE WHEN THE DRILLING CONTRACT HAS BEEN CONCLUDED AND DURING THE PERIOD IN WHICH APPROVAL PROCESSES ARE BEING COMPLETED" (my caps).

o Site survey - "planning is at advanced stage with the preferred tenderer advised. The precise site selection is being refined through the current seismic reprocessing process"

Last Thursday we got a fairly lame ann regarding operational progress with some ancilliary services including helicopter services.

So why did I buy more on Friday?

Look at the chart, the elapsed time and recent announcements. Also remember they have set themselves an ambitious target with BPHO which expire end May. Du-el are beavering away with planning for the well. So we're just waiting for the rig finalisation which will trigger environment approval process and they are doing everything to ensure this goes smoothly. Then there is the joint venture scenario.

Whether its March or April, we can expect the result of all this seismic reprocessing, well and environment planning and rig negotiations will eventuate. Lastly, here is a clip from Perth news last Friday, so again the timing:
clipattic.com.au/details.php?image_id=1896&Clip_Name=MEC%20Resources&mode=search

MMR - emerging offshore superstar!!

 

[soren_lorensen]

MMR was up 11.7% today, wonder if we'll see more movement and announcements in the next few days/weeks?

 

[rabbit59]

MMR was up 11.7% today, wonder if we'll see more movement and announcements in the next few days/weeks?

It was indeed, but do keep in mind, it has sumped that 11.7% in the past week also....dont you worry MMR will have its day in the sun soon enough.....DYOR

 

[Donga]

MMR was up 11.7% today, wonder if we'll see more movement and announcements in the next few days/weeks?

Fund manager advised me early March: things are going well and assuming they continue to progress, we can expect a series announcements within six weeks. These would address the drill rig details, likely environment approval and update on farm in major. MMR have been advising on these matters for a while and let's hope the timing is accurate.

Great to have some company in here and best wishes for PEP 11

 

[moneymajix]

Ann. re drill rig is due before 19 March.

Share price has been going up this week in anticipation.

44c and up near 20% this morning.


Other companies that have a relationship to MMR - GBA, BPH, BUY - are also up.



The luck of the Irish is with us today.

 

[Donga]

Ann. re drill rig is due before 19 March.

Share price has been going up this week in anticipation.

44c and up near 20% this morning.

Other companies that have a relationship to MMR - GBA, BPH, BUY - are also up.

The luck of the Irish is with us today.

Yes indeed - promising day for MMR and related PEP 11 companies, looks like we're reaching that next series of annoucements. Believe this one was prompted by recent BUY statement re March 19 and they threw us a bone, with some tasty meat on it:

o "funding for the well has been secured"
o "discussions have commenced with a number of upstream companies concerning a farm in"
o "made substantial progress towards applications and environment permits"

So lots more anns to look forward to IMO.

Don't forget to DYOR on BPHO - SP doubled today and could continue to fly leading up to May expiry.

 

[Riddick]

Hi Upmarket oops I mean Donga.
I responded earlier on this thread but it was moderated largely because some unnamed sissy complained i was picking on him...

so i'll just post on "the other" forum when it comes to mmr, buy and so forth.

nice work by the way on this stock and bounty.
cheers

RB

 

[sharebuddha]

They have a rig contract for Pep11. :chainsaw: This is a big step forward and something us long term investors have been awaiting for quite some time.

(deleted links)

everthing now rests on that rig coming to fruition, and some brown stuff with yellow gas popping out.. if that happens. Well, well well...

(stupid forum rules won't let me post links as this is my first post, so just go to the asx website at asx.com.au and search MMR.AX announcements )

 

[craigj]

is this one of those stocks that you dont pay any capital gains tax on ?

pooled development fund i think ?

 

[happytown]

Channel 9 news (Sydney) look like they will be running a story this evening on PEP11 - how Sydney may be able to supply its gas needs from directly off-shore and is it safe to drill off-shore

 

[Buckfont]

Channel 9 news (Sydney) look like they will be running a story this evening on PEP11 - how Sydney may be able to supply its gas needs from directly off-shore and is it safe to drill off-shore

Hate to tell you this happytown but that was on Ch 9 here on C Coast last night. There is great potential here with MMR, although all the probs in The Gulf will put a lot of people off. Cant even get HMAS Adelaide scuttled off Avoca beach without the do gooders jumping up and down, so I`d hate to think what they would say to rigs off the coast. Noticed SP up 015c. in a shocker today.