NGE - NGE Capital

[maui4marko]

10 reasons to buy now

1) Strong PNG position
NGE has interests in 6 onshore exploration blocks and a farmin agreement with Talisman (subsidiary) for an equity stake in PPL 268 & 269. Talisman is on the hook for a significant seismic campaign and the drilling of up to 4 exploration wells. NGE is conducting seismic campaigns across most of its permits in 2011 and is expected to drill between 3 & 6 wells in 2011.

2) Share price below fair value
The NGE share price cratered after Panakawa 1 hit dust, but has since started to recover with news of Soros' investment and the upcoming drilling campaign.

3) Drilling activity/impact
By Jan 31st, NGE & Talisman kick off an aggressive drilling campaign in blocks PPL 268 & 269. Plenty of news coming soon, hopefully with continued share price performance. Any find would quickly result in higher pps, some estimates say another 13 cents / share.

4) Talisman
Our JV partner has been aggressively looking for gas to supplement it's existing 2.5 tcf. Multiple LNG and FLNG opportunities will require plenty of feedstock.

5) More deals to come
NGE has 4 blocks in which it still has a 100% interest. NGE has previously said it'd be interested in farmouts at the appropriate time. Deals would result in:
a) a free carry on future exploration activities, and/or
b) accelerated drilling

6) Low cost operator
NGE is now a successful driller in PNG. It acquired a rig from Australia, drilled a well onshore, and returned the rig to Australia all for under $11m, a noteworth achievement. It has now demonstrated it has the capability to handle future drilling activities where it will be operator.

7) Potential for corporate activity
An increased level of interest in PNG oil with XOM, IOC, Talisman, Horizon, Sasol, floaters. Heck even Oil Search needs to expand.

8) Attractive terms & environment
All the usual good reasons with PNG tax, close to Asia, energy tailwind, etc etc


0) Key risks
Probability is expected to be less than 50%, some say 25%. Likelihood of an individual well failing is high, as Panakawa painfully pointed out. Global turmoil and financial environment could do them in. On the other hand, would Soros watch one of his investments go down the toilet without intervention? High risk ~ high reward.

 

[56gsa]

Nice action this week maybe as a result of the Soros investment - how long will this keep pushing tho? not sure what news will drive further rises - no new drilling until the dry season which means March-April... could see consolidation around 16-18 level and perhaps test support at 15 ...

 

[56gsa]

Re: 10 reasons to buy now

3) Drilling activity/impact
By Jan 31st, NGE & Talisman kick off an aggressive drilling campaign in blocks PPL 268 & 269. Plenty of news coming soon, hopefully with continued share price performance. Any find would quickly result in higher pps, some estimates say another 13 cents / share.

Maui - missed these points before i sent last message - glad to see there's some news potential - can drilling start this early?

4) Talisman
Our JV partner has been aggressively looking for gas to supplement it's existing 2.5 tcf. Multiple LNG and FLNG opportunities will require plenty of feedstock.

do you work for NGE? or just a loyal investor?

 

[maui4marko]

Re: 10 reasons to buy now

Maui - missed these points before i sent last message - glad to see there's some news potential - can drilling start this early?

56 - not sure if they can actually start, as you pointed out the wet season. I'm going on the Sep announcment "The First Well will be spudded no later than 31 January 2011 or such other date as NGE/Talisman may agree..." https://www.otciq.com/otciq/ajax/showFinancialReportById?id=40660

so I guess there is an out if they both agree to a new date

do you work for NGE? or just a loyal investor?

lol not an employee, just a very interested investor

 

[maui4marko]

Re: 10 reasons to buy now

Also, want to point out that should NGE/Talisman agree to drill on PPL 268, the 1st well must be spudded no later than February 28, 2011 and a 2nd well in PPL 269 must be spudded no later than 30 June 2011.

That would be the 3 minimum projected, which could be as many as 6 if everything goes well.

 

[skivvy]

Unable to break that 18c level this week but still holding above the support at 16c with consolidation around the 17c level. The sp looks to be building up leading to the spudding of the next well which is something that BESBS player trades on. Buyers are still present and numbers look ok, bring out some drilling news please Lucy and we will move back up through the next resistance at 18c.

 

[skivvy]

Any thoughts on the corporate presentation and quarterly released over the last few days? I felt they were mixed with delays on drilling in PPL 268 and 269 due to flooding being the big disappointment. The corporate presentation didnt show anything new, other than work is continuing on the seismics and locations for the wells to be drilled with Talisman. Getting a little impatient with the management team at NGE, poorly handled the results from the 1st well and not a lot of fresh news in the latest releases. The share price has improved considerably over the last few months and one should not complain but it is a little frustrating with no results coming out.

 

[maui4marko]

skivvy - latest announce says TLM has opted in on Siphon-1 based on the seismics they did along with the HZN jv over Sepalosiphon 2nd half last year. Appears they like what they see and have been able to fine tune the location based on the seismic data. One could speculate they envision similar results to the Stanley-2 well, and in fact will be using the same rig. Parker 226 is currently drilling a sidetrack on Stanley-2, and once complete with that well will be moved to the Siphon-1 location.

Someone said the pps could be stuck here for a while, and I agree that's a possibility, at least until 2Q when they spud Siphon-1. What are your thoughts... a good time to accumulate prior to another run at 18 when drill news starts flowing?

http://www.asx.com.au/asxpdf/20110204/pdf/41wlj1jwv3bxf9.pdf

http://member.afraccess.com/media?id=CMN://4A228764&filename=20110203/HZN_01147894.pdf

 

[skivvy]

Maui, I personally am waiting for an update on the rig movements and estimation on drilling dates before buying more of NGE. The delays in drilling due to flooding and lack of updates from the management team have frustrated me with this one and I am trading other positions atm, until things start to heat up again prior to spudding. The sp has held up above support of 16-16.5c but as I thought could not break through the 18c resistance level, yet...............

I agree Talisman appear keen to drill ppl269 due to the potential of the continuation of the formation drilled with Horizon. It appears Stanley 1 & 2 are going to be quite productive and time will tell if NGE can find similar payloads in its large acreage as well. Still holding.

 

[skivvy]

Huge volume today on NGE about 116.5 million shares traded, three trades were for 110million at 17c which were S1 XT trades which is some sort of cross trade. Pushed through resistance, touched 18.5c and closed at 18c with buying pressure looking strong again. Not sure on what caused the big volume spike today, time will tell. Unsure about the S1 XT trades, any ideas??

 

[maui4marko]

Not sure on what caused the big volume spike today

skivvy - one possible cause is Monday's Eaglewood drilling news. Not sure on the S1 XT trades though... those are big numbers, a big boy positioning perhaps?

Monday, February 07, 2011

Eaglewood Energy jumps on condensate rich gas discovery in Papua New Guinea

Junior oil and gas explorer Eaglewood Energy (TSX-V:EWD) jumped more than 40% in afternoon deals following the announcement of a discovery at the Ubuntu-1 well in Papua New Guinea.

Ubuntu-1 well is located on Petroleum Prospecting License 259, some 17 kilometres east of the Ketu and Elevala gas condensate discoveries. Eaglewood is the operator of the License, holding a 40% participating interest in the Ubuntu Area and a 90% interest in the rest of the 259 License.

The Canadian junior confirmed that the well intersected at least 10 meters of net gas bearing Elevala Sandstone from 3,305 meters. Wire line pressure testing of the sandstone confirmed a condensate rich gas gradient, and also suggested that the sandstones are of “good quality and will flow gas and condensate”.

Eaglewood further noted that the gradient was similar to nearby offset wells Elevala and Ketu, “suggesting that the gas could have similar properties.”

The well also failed to hit a water contact, opening up the potential for additional gas discoveries below the newly discovered net pay zone.

“At this time, wireline pressure testing and sampling are continuing in order to establish the full extent of the hydrocarbon column and to recover hydrocarbon samples from the reservoir for further testing and analysis,” the company further noted to investors.

Brad Hurtubise, CEO of Eaglewood Energy said the discovery would help the company better interpret additional seismic acquisitions planned for other prospects in the vicinity.

“...we are acquiring [seismic] over the numerous other prospects we have in the vicinity of Ubuntu and the existing PRL 5 discoveries and to attract farm-in partners to drill some of these prospects. The proximity of Ubuntu-1 to the Ketu and Elevala discoveries on PRL 5 some 20 kms away enhances to opportunity for a coordinated gas condensate development in the area.”

http://www.proactiveinvestors.com/c...-gas-discovery-in-papua-new-guinea-12096.html

 

[skivvy]

No Maui the volume was due to Soros exchanging his 160 odd million shares with HSBC and Credit Suisse over the last couple of days. I sold half my holding at 18.5c and moved it into LNC to increase my holding there until the news on drilling ppl 269 is released. I really like what is happening with LNC atm and have spread myself across them, Samson and Sundance Energy over the last few months. Havent given up on NGE, just getting frustrated with the lack of information and action.

 

[skivvy]

Sorry it was Macquarie Group not HSBC, slip up there, sorry.........

 

[56gsa]

No Maui the volume was due to Soros exchanging his 160 odd million shares with HSBC and Credit Suisse over the last couple of days.

What do you read into this skivvy - i thought soros would be in for the long haul but they've obviously just taken a small profit and run?

 

[maui4marko]

or 56 could it be just juggling between funds? Would think if they bailed we'd be taking a beating

 

[maui4marko]

56 & skivvy, looks like Soros dd an equity swap with Macquarie. Shrewd move as it means he retains voting control. Perhaps TLM is sniffing around?

They also upped the equity facility from last July by $15M to $40M. Four+ years access to money, exploration or war chest either way get it while you can.

I'd say both are positive events.

 

[skivvy]

yeah not sure about the move by Soros or his motives, but all in all not really a reason to change my position in the stock long term, just a little curious like you are Maui. I dont care much about the extension of the funding to $40 million, but I would rather have seen the option go to shareholders by way of a raising, than funding through YA Global. Give the shareholders a go at putting some money into the future drilling and exploration activities first, is my preference. I for one would purchase more shares at a discount to current prices if the option presented itself, but it hasnt and probably wont now. They have $40 million available if they want it and unfortunately our shares get diluted if they do issue more stock to YA Global. Another reason why I am frustrated with management at NGE.

Glad I took some money off the table for now as it looks like support at 16c is going to be tested. Still holding and looking forward to those spud dates on ppl269.

 

[maui4marko]

>> there's a new presentation out with these highlights:

Potential to fast track production by participating in the Stanley Gas Development with new seismic and drilling at Sepalosiphon in PPL269

2011-12 program includes up to 6 wells & significant seismic


Seismics & Drilling Activities

2010:
1) Seismic completed on PPL266 1Q
2) June/July drill Panakawa-1 in PPL267 - duster

2011:
1) Seismic completed on PPL269 Feb 2011
2) Seismic targeted to complete on PPL268 1Q
3) Spud Siphon-1 (PPL 269) 2Q 2011
4) Identify drilling target on PPL266
5) Seismic program on PPL265
6) Identify 2nd PPL267 drilling target using Panakawa data

2012:
1) Drill PPL265
2) Drill PPL268 (2011?)


"NGE will be a major contributor and partipant in the Western Province gas aggregation program"

http://asx.com.au/asxpdf/20110301/pdf/41x4hqtx323f15.pdf

 

[Agentm]

8 March 2011

The Company Announcements Office

ASX Limited

PURCHASE OF HELICOPTER RIG

New Guinea Energy Limited (NGE / Company) is pleased to advise that it has entered into a purchase agreement to acquire an OIME SL 7 1000 HP Helicopter Rig (Rig) for use in its
operations in Papua New Guinea (PNG).

The Rig is an established heli-portable design, optimised to move with a medium-lift
helicopter in loads of less than four (4) tons. It is a basic, mechanically powered (rather than electric) rig and therefore well-suited to PNG conditions. When fitted with a top-drive, it will represent the best balance between portability and capability for drilling in much of the PNG Foreland. By right-sizing and standardising camp and support components, it will be possible to move the rig in an efficient, and extremely cost-effective manner throughout the Western Province of PNG.

Over the next 3 years, there will be an unprecedented level of drilling activity in PNG for
intermediate depth wells of between 1800 and 3000m. During this period, planned wells in
the Western Province amongst companies expected to drill multiple wells, currently total not less than 12 wells.

The total cost of the Rig will be US$7.1 million.

The Rig will be owned by a Company to be established in PNG to be called “Western Drilling Limited” (Western Drilling), in which it is proposed the Company will initially hold a 50% interest. Once the operating and ownership details of Western Drilling are finalised, further details will be announced.

Executive Chairman, Mr Michael Arnett, stated today “I believe that the purchase of the SL7 rig and the establishment of Western Drilling Limited will be of great benefit to NGE both now and into the future from a financial, operational and technical perspective.
NGE takes its obligations to the people of the Western Province of PNG very seriously and looks to support the growth of employment generating industries in the Western Province. It is hoped that Western Drilling will become an important contributor to that objective.”


i saw NGE present at the excellence in oil and gas conference, i spoke long with them on the NG ops, and particularly on rigs. availability, access etc

happily holding this share as i saw some brilliant presentations on png oil exploration, if i can get the slides up i want (still hunting them down) i will post them.

my view on the nge share is very upbeat for 2011

good luck to all holders

 

[maui4marko]

The Rig will be owned by a Company to be established in PNG to be called “Western Drilling Limited” (Western Drilling), in which it is proposed the Company will initially hold a 50% interest. Once the operating and ownership details of Western Drilling are finalised, further details will be announced.

Agentm - any ideas who the other 1/2 owner of Western Drilling will be? Some rumors of Sasol and/or Talisman floating around.

Also, looking forward to the presentation if you can find it. Agree could be big things waiting in the wings on this one.