NGE - NGE Capital

[haggis]

Drilling update.
The hole is already under way and at approx 37 metres-see Attached.

Watch out for the 50,000,000 oppys to be dumped on the market after this announcement

 

[skivvy]

Have been watching this stock for the last few months and have accumulated stock between 17 and 18c. Today they released a drilling update which shows progress of 366m for the week to a depth of 717m. The release mentioned encountering zones of uncosolidated boulders and that a series of cement plugs were set in to stabilize the hole. Does anyone know if this is an issue which could effect the drilling or is it normal to encounter these problems when drilling new wells.

I have been searching the net for any news on nge and how the prospects look for similar projects in the area. Look forward to hearing any views on the prospects of this wildcat.

 

[Buckfont]

Have been watching this stock for the last few months and have accumulated stock between 17 and 18c. Today they released a drilling update which shows progress of 366m for the week to a depth of 717m. The release mentioned encountering zones of uncosolidated boulders and that a series of cement plugs were set in to stabilize the hole. Does anyone know if this is an issue which could effect the drilling or is it normal to encounter these problems when drilling new wells.

I have been searching the net for any news on nge and how the prospects look for similar projects in the area. Look forward to hearing any views on the prospects of this wildcat.

Similar projects in the area near NGE I`m not sure of but this new listing coming up may may be in the same ball park.

Newport Energy Ltd is due to list on the ASX on 29th july 2010. at an issue price of 0.25c per share

http://view.email.investsmart.com.a...61277&jb=ffcf14&ju=fe24157576610c79751c79&r=0

 

[Putty7]

Have been watching this stock for the last few months and have accumulated stock between 17 and 18c. Today they released a drilling update which shows progress of 366m for the week to a depth of 717m. The release mentioned encountering zones of uncosolidated boulders and that a series of cement plugs were set in to stabilize the hole. Does anyone know if this is an issue which could effect the drilling or is it normal to encounter these problems when drilling new wells.

I have been searching the net for any news on nge and how the prospects look for similar projects in the area. Look forward to hearing any views on the prospects of this wildcat.

When you drill a hole in the ground, you need water pressure sent down through the drill rods to flush the debris clear of the bottom of the hole so the drill bit can keep chewing into the new rock, dirt, sand, clay whatever unimpeded.

When you enter broken or fractured zones the water will tend to invade these areas rather than return to the surface and you will lose water pressure, when you lose water pressure the debris can not be evacuated back to the surface effectively and the hole can not be cleared, this ends up with rods getting stuck or bogged down.

This appears to be the case but without being there I do not know this for certain. What they have done is cemented the zones that are thieving the water to shore them up and make them solid, they then drill through and go again, very time consuming and the reason for slow drill progress through the Darai zone.

It also ensures the casing is solid and the integrity of the hole remains sound.

It is a wildcat so even though they have stated depth zones they are best guestimates, the drill bit will tell all as it goes through, hence it is an appraisal well in a new area and if they have success it will set the benchmark for the following wells in relation to geology and what they will expect to encounter.

I think the last place this rig was drilling it averaged around 100 metres every 24 hrs, so if the geology becomes a bit more forgiving the drill rates should be increased by the next report which should be next Friday.

Hope this answers some of your questions.

 

[J.B.Nimble]

Look forward to hearing any views on the prospects of this wildcat.

On the risk side -
5 bbl per day oil seeps are tantalising
the well is fully funded
this is but one prospect in the portfolio with Talisman funding the exploration of many of the others

On the reward side -
a 100% interest in a 202mmBOE (mean estimate) discovery would have dramatic impact on the share price of a 123 million mc company.

Stacks up for me...

 

[skivvy]

Thanks putty7, that is very useful information. I was interested to read your comments about drilling rates of 100m per day at previous well sites. It has been slow progress on this well and at current rates of approx 50m per day it looks to take longer than the original estimate of 30days to reach total depth of 2323m. I too will be hoping for improved drilling rates and await the next drilling update next friday.

Trading volumes have been light this last week (in line with the broader market) but should increase as the drilling continues and speculation builds.

I will be watching with anticipation of any updates.

 

[maui4marko]

I have been searching the net for any news on nge and how the prospects look for similar projects in the area.

skivvy, in addition to the Newport offering buckfont mentioned, another junior is LNG Energy (lng.v) who shares a reef prospect with Interoil (IOC).

April 19, 2010
Lng Announces Joint 2d Seismic Acquisition Program with Interoil in Papua New Guinea

----------------------------------------------------- ---------------------------

LNG Energy Ltd. ("LNG") (TSX Venture -- LNG) is pleased to announce that it has entered into an agreement with InterOil Corporation ("InterOil") to acquire 2D seismic on LNG's 100% working interest PPL 319 in Papua New Guinea. PPL 319 lies between InterOil's PPL 237 and the PDLs/PRLs that collectively comprise the licenses of ExxonMobil's US$15Billion LNG export development infrastructure announced on December 7, 2009. The seismic program includes the acquisition and interpretation of a 27km north-south line that is located 50m west of the boundary between PPL 319 and InterOil's PPL 237. The program will be managed by InterOil and logistics have recently commenced, with final data acquisition expected in June 2010.

Based upon a High Resolution Airborne Magnetic ("HRAM") and Gravity survey that was acquired and interpreted by InterOil in 2006-2007 in PPL 237, an anomaly similar to that defining the recent 8 TCF Elk/Antelope reef discovery (approximately 60km due east) has been identified as straddling the boundaries of these two adjoining PPLs. Processing and interpretation of this 27km 2D seismic line is to be performed by Kelman Technologies Inc. ("KTI") based in Calgary, Alberta. Once the interpretation and analysis has been completed, LNG and InterOil will review the data to plan an appropriate path forward for additional seismic acquisition, or a potentially drillable prospect.

 

[maui4marko]

Looking forward to the next Panakawa-1 drilling report (today?). Also found this picture of the location, clearly indicating the easy access to the drill site. NGE has also located another drilling prospect just a few kilometers away.

Panakawa-1 proposed well location (red arrow) in log yard of the Rimbunan Hijau Plywood Mill
pngindustrynews.net/images/ImageEnlarge.asp?strImageFileName=NGE%2Ejpg

Another view of the plywood mill rhpng.com.pg/images/gallery/veneer/OperationsVeneer001.jpg

 

[maui4marko]

Panakawa-1 Drilling Report 16 July 2010

16 July 2010
The Company Announcements Office
ASX Limited

Drilling Report
Panakawa-1 Exploration Well, PPL 267, PNG

New Guinea Energy Limited reports that at 0600 PNG time the well was at a depth of 1246 metres and preparing to cement the 9.625 inch casing over the Darai Limestone section. Progress for the week was 529 metres.

Biostratigraphic age dates from claystone samples immediately underlying the basal Darai Limestone confirm penetration of the uppermost Alene Member of the Ieru Formation. Compared to the preferred pre-drill model, formation tops are approximately 325 metres high to prognosis.

The well is targeting sandstone reservoirs in the Toro Formation (primary target) and secondary reservoirs in the Alene and Iagifu member sandstones as well as the Koi Iange Formation. Proposed total depth of the well is approximately 2250 metres in basement.

New Guinea Energy Limited is the sole participant in the Panakawa 1 well as the holder of a 100% interest in PPL 267.

Should you have any queries, please contact the Company Secretary on +61 (0)2 9250 1800.

Lucy Rowe
Company Secretary

 

[maui4marko]

Re: Panakawa-1 Drilling Report 16 July 2010

Drilling Report Panakawa-1 Exploration Well, PPL 267, PNG 16-July-2010

----- WEEK UPDATE #4 - 55% COMPLETE -----
16-July 0600 PNG time: the well was at a depth of 1,246 metres and preparing to cement the 9.625 inch casing over the Darai Limestone section. Progress for the week was 529 metres, with 1,004 metres (45%) remaining to revised proposed TD of 2,250 metres in basement.

Confirmed penetration of the uppermost Alene Member of the Ieru Formation, 325 metres higher than planned. Reduced TD by 73 metres.


----- UPDATE WEEK #3 - 31% COMPLETE -----
09-July-2010 0600 PNG time: the well was at a depth of 717 metres and drilling ahead in 12.25" hole. Progress for the week was 366 metres, with 1,606 metres (69%) remaining to proposed TD of 2,323 metres in the basement.

The well has encountered intermittent zones of unconsolidated boulders within the cavernous upper Darai Limestone. A series of cement plugs have been set to stabilize the hole.


----- UPDATE WEEK #2 - 15% COMPLETE -----
02-July-2010 0600 PNG time: the well was at a depth of 351 metres and preparing to drill out the shoe at the base of the 13 3/8” casing. Progress for the week was 351 metres, with 1,972 metres (85%) remaining to proposed TD.


----- UPDATE WEEK #1 - 2% COMPLETE -----
25-June-2010 0700 PNG time: drilling has begun and the well was at a depth of 37 metres. Proposed total depth of the well is 2,323 metres in basement. The well is expected to require approximately 30 days to drill.

 

[skivvy]

drilling rates have improved this week, if these rates continue, target zones will be reached next week and total depth within two weeks.

Maui, it is likely that they will drill the next well back to back once this well is complete, makes sense to make the most of the rig whilst at site.

Share price movement this week finished well, with buying pressure building on friday. Short term down trend has been broken, time will tell if the new uptrend will continue. The US drop on Friday will test the aussie markets next week and the share price may take pressure.

 

[J.B.Nimble]

Big, big "if". but if they do find oil at Panakawa, well, how much do we think a 100% interest in a 200 mmbbl discovery would be worth?

 

[maui4marko]

drilling rates have improved this week, if these rates continue, target zones will be reached next week and total depth within two weeks.

Maui, it is likely that they will drill the next well back to back once this well is complete, makes sense to make the most of the rig whilst at site.

Share price movement this week finished well, with buying pressure building on friday. Short term down trend has been broken, time will tell if the new uptrend will continue. The US drop on Friday will test the aussie markets next week and the share price may take pressure.

Agreed skivvy. Presuming all goes well, we will know a lot more two weeks from today.

Since I'm offshore (island of Maui, Hawaii) in the US, my only option to purchase shares is over the US "pink sheets". The volume is usually low to non-existent, but this week activity spiked Friday as well (some of that was mine )

My other PNG stocks held up well with Friday's US drop, including IOC. They may be getting close to announcing a deal with JV partner(s) which could come in the next few weeks as well.

Hoping to have a rockin' good time in August!

Big, big "if". but if they do find oil at Panakawa, well, how much do we think a 100% interest in a 200 mmbbl discovery would be worth?

According to Bell Potter, Panakawa gas and liquids are worth $0.31.

Martin Place Securities is higher, saying "Success in PPL 267 Panakawa worth min A$1,058m (A$1.59/share)." http://www.inhalesuite2.com/uploads/16/documents/MPSNGEFeb2010updated.pdf

State One is the most optimistic with oil @ US$80, they estimate Panakawa hitting P50 is worth A$7.64 per share! http://www.inhalesuite2.com/uploads/16/documents/StateOneStockbrokingResearchReport.pdf

So it's safe to say, success at Panakawa will result in a minimum 2-3x share price bump up to a wildly optimistic 4,000%!

 

[J.B.Nimble]

So it's safe to say, success at Panakawa will result in a minimum 2-3x share price bump up to a wildly optimistic 4,000%!

It is interesting to read these reports again to understand the very different numbers they arrive at. Something in the middle of these numbers would be very nice indeed. One way or another the "chance of success" factors should be equalised in a couple of weeks. The wait is almost over...

 

[skivvy]

Maui, I read the MPS report a few weeks ago on the prospects of NGE and find it a little confusing, they use two different valuation methods: the first is Exploration risk adj valuation - for the top 20 leads ($0.75 per share or $0.83 with cash)
The 2nd method is Major Project Production‐based Valuation with this current well PPL267 worth $1.59 per share.
Not wanting to sound sceptical here but MPS have a vested interest in writing positive material about NGE and I hope they are right.
I am not sure what the upside will be if they find oil here, it all depends on the reservoir size and a the quality of the find. The current analyst outlook from four different brokers is between $0.45 to $0.50cents per share. Based on the technicals my initial price target is $0.29 but a significant find at 267 will be worth much more than that........I am holding this share for the medium to long term with the prospects from other drilling at 268 and 269 still to come, Talisman will be a great partner in these ventures.

 

[maui4marko]

I am not sure what the upside will be if they find oil here, it all depends on the reservoir size and a the quality of the find. The current analyst outlook from four different brokers is between $0.45 to $0.50cents per share. Based on the technicals my initial price target is $0.29 but a significant find at 267 will be worth much more than that........I am holding this share for the medium to long term with the prospects from other drilling at 268 and 269 still to come, Talisman will be a great partner in these ventures.

skivvy, we're thinking alike. Agree some of the analyst targets are "a bit" aggressive for me. I've been invested in PNG companies less than a year, but quickly learned the timetables (no matter what PNG stock) are nearly always too optimistic, not to mention the valuation numbers.

Your target sounds reasonable, based on Panakawa results. The 35 API oil seeps are compelling, because they indicate a different source than the already proven 55 API finds in the surrounding area.

Hard to say what to expect in terms of oil quantity, since I haven't seen any of the seismics or other data to indicate reservoir size and characteristics other than the summary estimates. One technique PNG neighbor Interoil is utilising is to increase their reservoir numbers is horizontal drilling.

Improvements in seismic and drilling technology are a potential big time game changer. Could turn what in the past was a non-commercial or marginal producer into a big time money maker. Haven't heard whether NGE's contracted rig can drill horizontal wells, but the technology and techniques are being used today in PNG.

 

[maui4marko]

July 13, 2010
New Guinea Energy Moves Ahead With Maiden Well In PNG

These are exciting times for investors in New Guinea Energy Limited, which is currently drilling ahead with its first well in Papua New Guinea. This is a go-it-alone venture for the ASX-listed company, which holds 100 per cent of PPL 267 in the South Foreland area of the island, compared to two of its licences in the Western Province Foldbelt where it has bagged Canadian independent Talisman Energy as partner.

Talisman is chasing major gas resources in PPL 268 and 269 but PPL 267 is home to a different play type, with NGE hoping to strike oil. The well is being drilled into the Panakawa structure, a possible 200 million barrel prospect, which seeps around five barrels of oil to the surface per day. The exciting thing here is not the confirmation of an active oil system but the fact that the oil is 35-degree API, different from the 55-degree API found in the Highlands region and therefore pointing to a possible new oil play. An oil seep, however, doesnt guarantee an oil strike; there are still many unknowns about the viability of the prospect.

More will be known in the coming weeks as the Panakawa-1 well descends to its planned depth of 1,600 metres [Note: should be 2,250 metres]. Last week the well was at 717 metres, having encountered intermittent zones of unconsolidated boulders within the cavernous upper Darai Limestone. A series of cement plugs were set to stabilize the hole, while it targeting sandstone reservoirs in the primary Toro Formation and secondary reservoirs in the Alene and Iagifu member sandstones as well as the Koi Iange Formation.

There is further upside, with a new lead delineated just 10 km from the Panakawa drill site. Whats more, the lead is in an easily accessible location via existing logging tracks, making it a candidate for a reasonably quick and cost-effective follow-up by PNG standards (some wells in these jungle frontiers are only accessible by helicopter, making for hefty drilling costs).

This is why the Talisman deal was so important for New Guinea Energy. First, the farm-in will accelerate seismic and drilling activities on licences PPL 268 and 269 as the Canadian company has committed to spent over US$100 million over the next two years. Second, it provides third-party endorsement of NGEs acreage from a player that has been at the forefront of 2009s land grab in the country: Calgary-headquartered Talisman has stitched together a serious acreage position in the western province of Papua New Guinea over the course of the last year through a series of acquisitions, corporate deals and farm-ins.

Under the farm-in agreement, Talisman will spend up to US$11 million on seismic and a possible US$90 million on a six well programme to earn up to 70 per cent of PPL 268 and PPL 269. There is certainly enough scope on these licences to keep the Canadian company interested with PPL 269 home to five mapped prospects and 34 identified leads, with both oil and wet gas potential, and the under-explored PPL 268 block on trend with Rift Oils (and, after a US$188 million takeover in 2009, now Talismans) Puk Puk and Douglas gas discoveries. The first Talisman wells under the farm-in agreement are expected to spud in Q4 2010.

The Canadian company has also agreed to co-operate with New Guinea Energy on some of its other licences, most recently by extending the seismic programme over its PPL261 licence into the north-east section of NGEs PPL 266. The seismic programme was completed in early April and results are due in Q3.

It all adds up to a busy timetable for the remainder of the year, with some near-term newsflow due in the coming months from Panakawa to keep investors interested until the big wells with Talisman start spudding in Q4.

http://www.oilbarrel.com/nc/news/di...-moves-ahead-with-maiden-well-in-png/771.html

 

[maui4marko]

>> Being offshore, I don't know about Macquarie Bank... anyone familiar? http://www.macquarie.com.au $3M doesn't sound like much...won't even drill one well?!? Thoughts?

New Guinea Energy to raise $3m in placement to Macquarie Bank

Published 11:20 AM, 20 Jul 2010

New Guinea Energy Ltd will raise $3 million in a private placement of 15 million shares at 20 cents a share to Macquarie Bank Limited. The issue was approved by shareholders at the company's annual meeting in May.

The company says the funds will provide additional working capital for its exploration activities.
STOCK DASHBOARD: July 20, 2010
NEW Guinea Energy
Last traded July 19, 2010: 21.0c
Price change from previous trading day: 5.0%
Relative Strength (6 months percentile rank): 93.1
Market capitalisation: $139.9 million
Turnover volume: 4,246,097.0
Volume Index (1 is average): 1.9
Turnover value: $869,833
Turnover period: 1 year 2 months
Value of $1,000 invested 1 year ago: $2,283

http://www.businessspectator.com.au...-placement-to-Macq-7J3ME?opendocument&src=rss

 

[skivvy]

yeah bit of a mystery for me as well maui?? $3M is not a large amount and as you say it does not offer much in the way of their ongoing acitivities.

 

[Putty7]

They still have 35 million shares available to raise additional capital, doing a small cap raising now for 15 million shares hedges against the well being a duster, so they get 3m dollars at a good price of .20c a share for the 15m, considering the vwap was below .20c before the raising was actually done.

If the well is a success they still can raise with the additional shares, if it fails they have some capital gleaned from the market already so there is no need to hurry for the next one if the sp drops.