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MMR - MEC Resources

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Bought back in to MMR over the past 4 weeks. Now set in the mid-30c range.

Risks remain - local protests, general market gitters. That said, both of these might ease enough to allow MMR to fly when drilling is close.

Happy to hold and see.
 
MMR has held up well during market jitters BESBS and would expect protests will be short lived once the 'eliminate coal' card is played as well as knowledge that they will be drilling in shallow waters, less than 200 metres. If anything the media exposure should assist. Possible Environment approval in the next 30 days will trigger much interest IMO.

Great to have four good initial drill sites to choose from and that decision anno should also generate interest. Also heartening to see Bob Healy invest a small fortune.

Next few months should reward your play in the exciting PEP11 project.
 
Hi Donga.

Nice to see that the SP is starting to rise on the expectation of up-to-date drilling news. I bought a few extra last week. Lifted my average price a little but feel better about it today. :)

The Sydney Basin was always going to be a BESBS winner provided that the market holds. The recent rises over the last few trading days is a really positive indicator that we could see a decent SP run as drilling approaches. The Sydney Basin, the potential market that a discovery could be eventually sold into, the potential size of the prospect...that is why we are here. Smaller BESBS plays are always a little dicey in bear markets but this one ticks enough boxes for me. MMR finishing today at 48c is certainly a nice start to the pre-spud timeframe.

Good luck to all holders. Hopefully the train ride is just beginning...;)

Holding MMR at 38c ave.
 
Well, well, well BESBS what a couple of days and hopefully more media coverage to come after this today see http://www.abc.net.au/news/stories/2010/07/16/2955296.htm comparing PEP11 potential to Bass Strait.

We can expect the Greens to stir more interest which should ultimately reinforce the benefits of this energy source vs coal generated for Sydney.

Next few weeks and months are going to be very exciting one way or another :)

MMR - East Coast Superstar :) :)
 
Hi Donga.

Great to see MMR rising so quickly. As I stated earlier, I can only see a significant SP increase while MMR have the Sydney Basin drilling on the horizon (most likely in October-November). The location, potential target size...all spell profits ahead to me.

That said, I was a little surprised that MMR has basically moved just on 50% in one week :p:. Given this rise, and the fact that I don't think too many larger players would risk being out of MMR at this point. Once an update on drilling comes out soon, we hopefully (assuming that the announcement is positive) shall see the SP hike again as the next wave of traders buy in quickly.

So far this is going according to the script presented above. :)

All the best to all MMR holders... ;)
 
Monday morning might see the recent SP impetus increase given the following in today's SMH:

Advent says massive gas field off NSW could be a new Bass Strait CLANCY YEATES
July 17, 2010

ADVENT ENERGY'S plan to explore for gas off the NSW coast have been boosted by studies that found the area could contain a gas field rivalling the mammoth resources of the Bass Strait.

Although drilling has yet to start at the site, about 25 kilometres from Newcastle, the company says a discovery of this scale would be large enough to convert the state's coal-fired power stations to gas.

After recent seismic surveys, the unlisted company Advent recently said the resource could hold up to 3.7 trillion cubic metres of gas, on par with Bass Strait's gas resource.

Shares in its 50 per cent shareholder, MEC Resources, have jumped about 40 per cent since the upgrade was announced last week, including a 19 per cent rise yesterday.

Another key shareholder in Advent is Talbot Group Holdings, founded by the recently deceased resources entrepreneur Ken Talbot.

Advent will later this year start drilling at the site - known as Petroleum Exploration Permit 11 - the first time a company has drilled for gas in NSW waters.

The executive director of Advent, David Breeze, said one reason for the project was expected growth in gas demand from power stations.

''One third of Australia's carbon dioxide comes from 12 or 13 power stations between Wollongong, Sydney and Newcastle,'' Mr Breeze said.

''If you converted all of the coal-fired power stations to gas from a discovery that we made, then you'd actually meet Australia's Kyoto principle objectives in that one single step.''

Aside from the recent seismic surveys, Mr Breeze cited numerous government reported that said the Sydney basin was also prospective for gas.

However, the project is still several years from a final investment decision and whether it goes ahead will depend on the drilling results.

An energy analyst at Deutsche Bank, John Hirjee, said the 3.7 trillion cubic metres was a ''theoretical number''.

Further drilling will reveal whether the geological structure is as promising as studies suggest, and how much gas it contains.

''This could be very significant, but there's a long way to go before we would give it any credibility,'' Mr Hirjee said.
 
Wysiwyg said:
Here is a video link on the project. Less than 1 in 10 chance of finding gas in the August drill according to Trevor Powell in the vid. This offshore project might prod the onshore companies to pull their finger out. Like Metgasco.

http://video.au.msn.com/watch/video/gas-mining-plan-off-sydneys-coast/xen6fg7
Click to expand...

Good video Wysiwyg, which I missed at the time and followed by recent press coverage :) Not overly concerned about conservative time estimates or chances expressed on the first drill - the stuff is there and MMR has the permit. Expect they'll get a sniff with all the data they now have, then attract further funding for the push to find and commercialise.

Lots of interest and SP movement should occur leading up to first drill and the subsequent ones IMHO :) :)
 
G'day guys.

Interesting to see a trading halt today.
The announcement seemed very positive but revealed nothing that we did not know at present.
Still, nice to have the data confirmed.

Video clip is interesting. Not too worried about the 1 in 10 chance of success decreed by Powell. For any wildcat, that is usually about the odds (maybe the GoM and the Cooper Basin are better). Given the research, added to the potential size of the target and location, this one will fly once we have drilling action confirmed (which I expect around Oct/Nov.).

Good luck to all holders. :)


Holding MMR @ 38c ave.
 
BESBS Player said:
G'day guys.

Interesting to see a trading halt today.
The announcement seemed very positive but revealed nothing that we did not know at present.
Still, nice to have the data confirmed.

Video clip is interesting. Not too worried about the 1 in 10 chance of success decreed by Powell. For any wildcat, that is usually about the odds (maybe the GoM and the Cooper Basin are better). Given the research, added to the potential size of the target and location, this one will fly once we have drilling action confirmed (which I expect around Oct/Nov.).

Good luck to all holders. :)

Holding MMR @ 38c ave.
Click to expand...

Believe the anno today was attempting to put 'likely' into context given Powell's 10% chance. Either way Advent have the permit and a lot of evidence to suggest there are enough hydrocarbons out there to supply Sydney with clean energy for decades. Great project. And yes, good luck to all holders :)
 
Just checked this morning...MMR now up to 68c. Sure they might taper off a little but the trend is very positive :).

Enjoying the ride...

Holding MMR at 38c ave
 
Sure enough, they tapereed off a little.

Still, we have drilling confirmed for early Q4 and 60c...
The horizon looks fine from here :)
 
Announcement out. Management confirm that drilling should remain on schedule. :)

Always comforting to read...



Holding MMR at 38c
 
BESBS Player said:
Announcement out. Management confirm that drilling should remain on schedule. :)

Always comforting to read...
Click to expand...

Yeah BESBS the ducks continue to line up nicely. I liked these bits from the anno:

o Ocean Patriot activity in Bass Straight then PEP 11 in Q4
o Drill will be approx 55km from Newcastle
o Site survey indicates target is "likely" to contain zones of gas
o Advent will comply to necessary environment approvals

I liked the last two paras about generating jobs, new source of clean energy for NSW and relevance to meeting Kyoto objectives.

Then received this info from BP broker this week regarding Advent and PEP 11:

o Likelihood of commercial or technical success from drilling is increasing from the convergence of different sources of analysis

o Well will be drilled October. Likelihood of delay is neglible as Exxon has no further rights to extend

o All major contracts have been let in relation to drilling

o Completion of Advent capital raising is expected within 3 weeks and before the closure of the BPH rights issue.

Pity more folk not interested on ASF.

MMR - emerging offshore superstar
 
Hope that this might be of interest:

Angela Macdonald-Smith
The Australian Financial Review | Page 17 | 09 Aug 2010

Advent Energy's plans to test a possible big natural gas province off the coast of Sydney is attracting interest from larger oil and gas groups that want to join in the promising exploration.

The potential partners would join unlisted Advent and its partner Bounty Oil & Gas in drilling what will be the first gas exploration well offshore NSW. Drilling in the PEP11 permit, the state's only offshore petroleum exploration licence, is due to start in October at a cost of tens of millions of dollars.

Market interest in the well has surged since early July when Advent released an updated estimate of the targeted resource in the permit, doubling the volume of potential recoverable gas to 13.2 trillion cubic feet. A discovery on the doorstep of Australia's biggest energy market would drive a shift away from coal to gas for power generation, cutting carbon emissions.

Shares in MEC Resources, which owns 51 per cent of Advent, have jumped 48 per cent since the start of July, while Bounty Oil & Gas has gained 13 per cent.

"We have received approaches and we are evaluating them," said David Breeze, an executive director of both Advent and MEC Resources.

He declined to say what stake Advent, which now holds 85 per cent of the permit, may end up with in the exploration venture. Bounty owns the other 15 per cent. "We are evaluating what we might do relative to the sort of people who have approached us," Mr Breeze said. The PEP11 permit stretches about 200 kilometres from Wollongong south of Sydney up to Newcastle.

Market interest in Advent has been heightened by Talbot Group Holdings' 10 per cent stake. Talbot was the private investment vehicle of mining magnate Ken Talbot, who was killed in a plane crash in Congo in June. Talbot's other investments include explorer Karoon Gas, whose shares surged last year following discoveries off north-west Australia that may underpin a liquefied natural gas project.

Advent can also lay claim to some important Chinese connections, through chairman Goh Hock, a former Asia president of oilfield services major Schlumberger, and senior advisory panel member Ding Guiming, a former head of exploration at China National Petroleum Corp.

The expected start of drilling around the Great White and Marlin prospects about 55 kilometres east of Newcastle was recently delayed until early in the fourth quarter after a deferral in the date the drill rig would become available. The Ocean Patriot rig is now working for ExxonMobil at the $1 billion Kipper gas development in Bass Strait. The final drilling location in PEP11 has yet to be determined.

Independent experts used by Advent rate the chance of a discovery at the well at about 20 per cent, although other technical indicators point to a much higher probability, towards 80 per cent.

If successful, a gas discovery would have "immense significance" in terms of meeting the government's goals for carbon dioxide emissions reductions, Mr Breeze said.

Easy access to cheap coal resources in the Hunter Valley and technical difficulties in processing seismic data from the offshore Sydney Basin have deterred any drilling previously in waters off the NSW coast.


Disc: Holding MMR at 38c
 
Donga said:
Yeah BESBS the ducks continue to line up nicely. I liked these bits from the anno:

o Ocean Patriot activity in Bass Straight then PEP 11 in Q4
o Drill will be approx 55km from Newcastle
o Site survey indicates target is "likely" to contain zones of gas
o Advent will comply to necessary environment approvals

I liked the last two paras about generating jobs, new source of clean energy for NSW and relevance to meeting Kyoto objectives.

Then received this info from BP broker this week regarding Advent and PEP 11:

o Likelihood of commercial or technical success from drilling is increasing from the convergence of different sources of analysis

o Well will be drilled October. Likelihood of delay is neglible as Exxon has no further rights to extend

o All major contracts have been let in relation to drilling

o Completion of Advent capital raising is expected within 3 weeks and before the closure of the BPH rights issue.

Pity more folk not interested on ASF.

MMR - emerging offshore superstar
Click to expand...


donga.. i am certainly interested.. and will be posting a lot more.. as the days draw nearer, but in the short term there are a few months of waiting.

great days to accumulate

BESBS Player said:
Hope that this might be of interest:

Angela Macdonald-Smith
The Australian Financial Review | Page 17 | 09 Aug 2010

Advent Energy's plans to test a possible big natural gas province off the coast of Sydney is attracting interest from larger oil and gas groups that want to join in the promising exploration.

The potential partners would join unlisted Advent and its partner Bounty Oil & Gas in drilling what will be the first gas exploration well offshore NSW. Drilling in the PEP11 permit, the state's only offshore petroleum exploration licence, is due to start in October at a cost of tens of millions of dollars.

Market interest in the well has surged since early July when Advent released an updated estimate of the targeted resource in the permit, doubling the volume of potential recoverable gas to 13.2 trillion cubic feet. A discovery on the doorstep of Australia's biggest energy market would drive a shift away from coal to gas for power generation, cutting carbon emissions.

Shares in MEC Resources, which owns 51 per cent of Advent, have jumped 48 per cent since the start of July, while Bounty Oil & Gas has gained 13 per cent.

"We have received approaches and we are evaluating them," said David Breeze, an executive director of both Advent and MEC Resources.

He declined to say what stake Advent, which now holds 85 per cent of the permit, may end up with in the exploration venture. Bounty owns the other 15 per cent. "We are evaluating what we might do relative to the sort of people who have approached us," Mr Breeze said. The PEP11 permit stretches about 200 kilometres from Wollongong south of Sydney up to Newcastle.

Market interest in Advent has been heightened by Talbot Group Holdings' 10 per cent stake. Talbot was the private investment vehicle of mining magnate Ken Talbot, who was killed in a plane crash in Congo in June. Talbot's other investments include explorer Karoon Gas, whose shares surged last year following discoveries off north-west Australia that may underpin a liquefied natural gas project.

Advent can also lay claim to some important Chinese connections, through chairman Goh Hock, a former Asia president of oilfield services major Schlumberger, and senior advisory panel member Ding Guiming, a former head of exploration at China National Petroleum Corp.

The expected start of drilling around the Great White and Marlin prospects about 55 kilometres east of Newcastle was recently delayed until early in the fourth quarter after a deferral in the date the drill rig would become available. The Ocean Patriot rig is now working for ExxonMobil at the $1 billion Kipper gas development in Bass Strait. The final drilling location in PEP11 has yet to be determined.

Independent experts used by Advent rate the chance of a discovery at the well at about 20 per cent, although other technical indicators point to a much higher probability, towards 80 per cent.

If successful, a gas discovery would have "immense significance" in terms of meeting the government's goals for carbon dioxide emissions reductions, Mr Breeze said.

Easy access to cheap coal resources in the Hunter Valley and technical difficulties in processing seismic data from the offshore Sydney Basin have deterred any drilling previously in waters off the NSW coast.


Disc: Holding MMR at 38c
Click to expand...

nice report in the fin review.

the pep11 prospect has its merits, been likened to "the next bass strait"

super high risk high reward prospect..
 
Good to see management continuing to keep MMR in the media spotlight.
In the current market turbulence, such efforts are worthwhile. If they can manage to keep the SP close to 60c+ before final drilling news, MMR shall have a great platform to have a final pre-spud run.
 
does anyone have an opinion on why MMR instead of BPH , it seems that other than the obvious difference in shareholding MMR has seen a bit of a rise in the build up but BPH not so noteable . Is it the dilution?
 
Lycon said:
does anyone have an opinion on why MMR instead of BPH , it seems that other than the obvious difference in shareholding MMR has seen a bit of a rise in the build up but BPH not so noteable . Is it the dilution?
Click to expand...

nice observation

i think the recent cap raising has a great deal to do with it..

lol.. you can call it a conspiracy theory that false media reports of the well spudding in 3 weeks spiked the sp and they took full advantage, but that aside, the value of bph is certainly worth considering, i know i am..
 
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