NGE - NGE Capital

[maui4marko]

Thanks putty, makes sense. Let's hope they don't need the dusty hedge, but sounds like a reasonable move. Does the 3m with cash remaining after this hole get them another well? Guess we'll know soon enough...should be an interesting drill report Friday

 

[haggis]

They were using a figure of $5million a hole when Talisman signed up for a farm in.
However, as the next drill hole target site is easily accessible, (approx 10kms up the road on an existing track).
I am just wondering how much of the original cost estimate per hole allowed for chopper transportation of labour and materials???, and road construction/drill rig movement???
Perhaps the 3 mil would be enough to cover the next target?? Any thoughts??

 

[skivvy]

Maui, looking forward to the drilling report tomorrow. The Dow has opened 1.4% higher and things are looking quite nice in the US so far. Ben is speaking again in the afternoon so things may taper off a bit during the day. I will be watching for the drilling report around 11 am tomorrow and hoping for some favourable drilling rates and any news on indications from the drilling. Should be around 1800 deep by tomorrow.............

 

[Datsun Disguise]

Well punters didn't like this announcement at all - the sp has been punished. Still some objectives to go though and gas was encountered - wire lines still to evaluate those. Plus the juicy stuff is due for drilling later in the year - perhaps a good buying opportunity? Thoughts?

 

[maui4marko]

Well punters didn't like this announcement at all - the sp has been punished. Still some objectives to go though and gas was encountered - wire lines still to evaluate those. Plus the juicy stuff is due for drilling later in the year - perhaps a good buying opportunity? Thoughts?

Well gas isn't exactly bad, but the market wants and loves oil. Management said we're confident, we want 100% of this well, oil shows, etc. set mr. market's expectation for oil. Dust disappoints every time. The 3m was telling after all.

Before coming back for more, I need to know more about the seismics.

 

[skivvy]

yes it was a bad day for NGE holders today, me included. The prospects of this well are not looking good, and without the oil indications, the sell off was quick and pretty messy to be a part of. The outlook left a little glimmer of hope with only about 300m left to drill and gas levels to test, but it looks like this well was not the kick start the company needed.

I expect the SP will languish until the next drill report and the plans for the next well and laid out.

Not sure where things went wrong with the target zones, time will tell.......

 

[GumbyLearner]

Do NGE include wireline logs in their reports ? What kind of data do they reveal to investors? Just media releases or actual empirical data ?

 

[CapnBirdseye]

This is the announcement.

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 1991 metres
in 8.5 inch hole and drilling ahead in the Middle Jurassic Magobu Formation. Progress for the
week was 745 metres.
No oil shows were recorded in the primary Toro Formation target or in the secondary reservoirs.
Elevated gas readings in the Toro Formation and several other potential reservoirs will be
evaluated during the upcoming wireline logging and sampling program.
In addition to the Toro Formation, the well is targeting 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.

Interesting to see what happens next week. If they do have gas and a decent seal, or even find oil in the last 300m, we will see some very red faces. Not holding my breath though.

 

[maui4marko]

Not sure where things went wrong with the target zones, time will tell.......

skivvy - that's why I want to know more about the seismics, and as gumby points out the logs too.

Do NGE include wireline logs in their reports ? What kind of data do they reveal to investors? Just media releases or actual empirical data ?

to-date, I haven't seen any seismic or logs in any of their announcements. I appreciated the timely updates but other PNG drillers provide much more detail, including seismic data and logs. what you say NGE?

If they do have gas and a decent seal, or even find oil in the last 300m, we will see some very red faces. Not holding my breath though.

Capn - I'm with you... would love to see data on the gas shows as well, but based on what I've seen, I have no expectations remaining for this well.

 

[Putty7]

While I am not all doom and gloom it wasn't a great result, the expectancy was oil, it was not there, the sp reacted accordingly. It is now in hope that the gas is not residual.

Earlier in the year they alluded to a second drillable prospect in Panakawa North, 15kms away, to date they have neither confirmed or denied that a second well will be drilled. If Panakawa-1 has gas you would think after the high cost of mobilising a rig to PNG that a second well would be drilled on the same prospect while it is there.

Seismics were due this month, still have not been seen.

Gumby this was their maiden well, I would have thought when they did not encounter oil in the primary zone it would have warranted a market sensitive announcement, apparently not. Just the normal ho hum weekly drill report. This is fine if you are drilling 2 or 3 wells a month like some of the majors but for an explorer on its first well its not much chop, not even a drill diagram to show prospective targets and depths, pretty poor really.

Talisman have their wells coming up, surprising that they are still quiet, I would have thought a spud date for the first one would be announced soon at any rate.

 

[skivvy]

NGE should release the final drill update for the maiden well in PPL 267 tomorrow. Seismics and wireline logs should be released according to the company secretary, so it will be interesting to see if anything was found or whether the well was a dust discovery.

In regard to the future wells, earlier announcements indicated three wells to be drilled in 2010 and three in 2011. With the current Ausdrill rig on location in PNG, my guess is they will mobilize the rig ready to drill another well further up the forelands probably still in PPL 267. The first well took approx 1month to drill to depth so with only four months left in the year they will need to get cracking to drill those other two wells this year as planned.

Looking for some positive news to end the week.
Good luck to fellow holders.

 

[maui4marko]

New Guinea Energy Signs A$25million Equity Facility

27 July 2010
New Guinea Energy Signs A$25million Equity Facility

New Guinea Energy Ltd today secured a $25,000,000 equity subscription facility with US-Based Investment Fund YA Global Master SPV Ltd (YA Global).

Under the terms of the facility, New Guinea Energy Ltd may, at its discretion, issue shares to YA Global at any time over the next 60 months, up to a total value of $25,000,000. New Guinea Energy Ltd may draw down up to $1,000,000 in any 10 trading day period other than the first advance which will be up to a maximum of $500,000. New Guinea Energy Ltd has not yet activated the facility, and has no obligation to issue any shares until it activates the facility and issues a funding request to YA Global.

Shares issued to YA Global in satisfaction of each advance of funds by YA Global will be priced at the lowest daily volume weighted average price (VWAP) of New Guinea Energy Ltd shares traded on each of the 10 trading days which follow an advance notice by New Guinea Energy Ltd. A commission of 5% of the value of each advance will be payable by New
Guinea Energy Ltd at the time of issue of the relevant shares.

With respect to this facility, Executive Chairman and CEO Mr Michael Arnett said, “NGE is pleased to have established this equity line facility with YA Global however, the Company does not intend to make use of this facility in the near future. With this option available to the Company, we believe NGE is now in one of the strongest funding positions it has ever been in, giving it greater independence and allowing it to maintain its present focus on its
exploration and work program commitments in Papua New Guinea”.

About New Guinea Energy
New Guinea Energy Ltd is an oil and gas explorer, listed on the Australian Securities Exchange Limited and Port Moresby Stock Exchange, holding one of the few available highly prospective, on shore, non-aligned very large acreage positions in South East Asia. With a significant interest in six petroleum prospecting licenses spanning 52,000 km² in Papua New Guinea, NGE is committed to the development of potentially world class petroleum assets.

About YA Global
Managed by US-Based Yorkville Advisors LLC, the YA Global Group of Funds has a solid reputation in Australia for structuring convertible loans and equity participation agreements. To date, the YA Global Group has made available in excess of over $500,000,000.00 for over 30 ASX-listed companies.

>> "the Company does not intend to make use of this facility in the near future" Any bets on the definition of "near future"? Want to remain positive on NGE, but my radar is on high alert after the P-1 debacle.

 

[Putty7]

P-1 RIP

The news last week of no oil in the Toro formation pretty much killed the SP, a few false hopes of gas held it up slightly but now that hope is gone. P-1 is a duster.

YA Global or any other of these vultures getting involved is a warning sign in my opinion. Google "YA Global" for a look at their past form.

Until Talisman have a go not a lot of upside left in the near future.

 

[maui4marko]

NGE should release the final drill update for the maiden well in PPL 267 tomorrow. Seismics and wireline logs should be released according to the company secretary, so it will be interesting to see if anything was found or whether the well was a dust discovery.

30 July 2010
The Company Announcements Office

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

As of 0700 PNG time July 30, the Panakawa-1 well was at a total depth of 2,424m MD in the Magobu Formation and completing a logging and sampling program. Despite the presence of elevated gas readings in a number of intervals, pressure tests have indicated that the target reservoirs contain water.

Preliminary Results
The well encountered well-developed reservoir sands in the Alene Formation in excess of 57m net reservoir averaging 22% porosity (Figure 1).
Reservoir quality sandstones were also present in the Toro Formation within a gross interval totaling 67m.

Petrophysical analysis indicates residual gas saturations of 5-10% in the Alene Sandstone indicating a residual gas accumulation or a transition zone below a nearby gas-water contact. The well was drilled in a slightly off crestal position with limited updip potential for a significant gas cap. Residual gas was also noted in the Toro Sandstone suggesting a combined Alene-Toro historical gas column of up to 150m.

In general, most well developed reservoir sands appear flushed, but residual hydrocarbons persist in the poorer quality sands. Log analysis suggests intermittent zones of immovable hydrocarbons persist across the Upper Imburu Formation. These intervals will be sampled for further geochemical analysis to ascertain the hydrocarbon charge history to assist in future exploration within this licence.

The overall cause of failure of the Panakawa Prospect is the lack of trap integrity due to apparent fault leakage. Hydrocarbons originally trapped at the Panakawa Prospect have not been preserved in commercial quantities. However due to the residual nature only of the hydrocarbons, the Panakawa-1 well will be plugged and abandoned after the completion of the current logging and sampling activities.

Forward Plan
NGE has obtained a number of positive outcomes from Panakawa-1 including;
a) the confirmation of thick, high quality reservoir sandstones at relatively shallow depths;
b) evidence of significant hydrocarbon charge over a number of intervals;
c) the Alene and Toro sands have high porosity yielding residual hydrocarbons; and
d) the residual gas is spread over a 150m interval which suggests a valid trap with a significant hydrocarbon column existed in the past.

NGE still considers PPL 267 to contain significant prospectivity that can be assessed with relatively low-cost follow up seismic acquisition and drilling.

NGE will now reprocess existing seismic data in the block to incorporate the results of the seismic velocity data obtained from the well. Plans for additional seismic acquisition will be accelerated to extend the data to the southeast towards the hydrocarbon source kitchen as well as to advance evaluation of the Panakawa North Lead before undertaking additional drilling activities.

The information in this announcement that relates to NGE’s resources is based on information compiled by Mr Francis Waina and Mr Dan Kendrick, employees of NGE with over 15 years experience each as practising geologists.

Mr Francis Waina and Mr Dan Kendrick consent to the inclusion in this announcement of their information in the form and context in which it appears.

Michael Arnett
Executive Chairman

Figure 1. Preliminary petrophysical analysis of the Panakawa-1 Alene Member and Toro Formation reservoir intervals.

[partial well log]

Note thick sandstones developed in the Alene Member (reservoir quality increases to left on ‘Lithology’ column) and red circled area highlighting residual hydrocarbons, most likely gas.

http://www.inhalesuite2.com/uploads/16/documents/300710 Drilling Report.pdf

 

[maui4marko]

27 July 2010

PPL 277 - Approval of Years 3 & 4 Work and Expenditure Programs and Licence Variation

New Guinea Energy Limited (NGE) is pleased to announce that it has obtained approval from the PNG Minister for Petroleum and Energy for NGE’s Years 3 & 4 work and expenditure programs and variations to its well commitments in respect of its wholly owned PPL 277. As a result of this approval, NGE will commit to spending at least USD16.25 million on this licence.

In this case the approved work and expenditure program for PPL 277 means NGE will commit to this expenditure on the following activities:
● Geological / structural field mapping
● Seismic acquisition
● Drilling of one exploration well.

The licence’s well commitment was also varied to be drilled in Year 5 and 6 of the licence.

 

[maui4marko]

30 July 2010

PPL 265 - Approval of Years 3 & 4 Work and Expenditure Program and Licence

Variation New Guinea Energy Limited (NGE) is pleased to announce that it has obtained approval from the PNG Minister for Petroleum and Energy for NGE’s Years 3 & 4 work and expenditure program and variation to its well commitment in respect of its wholly owned PPL 265.

Under NGE’s approved work and expenditure program for PPL 265, NGE will commit to a minimum expenditure of USD$14.645 million on the following activities:
● Airborne gravity and magnetics
● Seismic acquisition and reprocessing
● Geological and geophysical studies
● Drilling of one exploration well.

The licence commitments of PPL 265 were also varied as follows:
● Inclusion of geological (GG&E) studies toward the minimum expenditure commitments
● Delay acquisition of seismic in this term
● Drilling of one exploration well moved into Year 5 and 6.

 

[maui4marko]

PPL 277 - Approval of Years 3 & 4 Work and Expenditure Programs and Licence Variation

PPL 265 - Approval of Years 3 & 4 Work and Expenditure Program and Licence

Off to happy hour so will analyze these announcements later, on a full belly of Canadian whiskey LOL

 

[maui4marko]

YA Global or any other of these vultures getting involved is a warning sign in my opinion. Google "YA Global" for a look at their past form.

Putty, are you going to stick it out or cut 'n run? Haven't heard of YA Global, but a quick google as you suggest shows signs of loan shark city.

I'm not getting a good feeling with this management team, but this was a speculative investment for me so think I'll stick it out a while longer in hopes the Talisman wells pay off (I do trust them as a more experienced outfit). Also, with neighbors Interoil and LNG Energy starting to spike over the pending IOC deals, I'm hoping for some excitement to come NGE's way.

 

[Putty7]

I was out at .14c. No news after they hit TD was never a good sign and they should have done that by Monday afternoon at the latest.

Might look back later when the sp settles down or before Talisman drill, hard to see the sp holding at the moment.

 

[maui4marko]

NEW Guinea Energy director buys on-market

>> Insider buys are usually a good sign... let's hope so in this case. Good news coming by way of Talisman?!?

NEW Guinea Energy director buys on-market

Published 7:04 PM, 4 Aug 2010

NEW Guinea Energy Ltd director Michael Norman Arnett directly bought 500,000 shares for $65,358 on-market on August 3, 2010.

He directly holds 500,000 shares, 25 million incentive options and 5 million incentive rights, and indirectly holds 1,763,333 shares.

http://www.businessspectator.com.au...tor-buys-on-market-7ZCPY?opendocument&src=rss