NGY - NuEnergy Gas

[springhill]

This "company" if we can call it that is merely a re-incarnation of NHM - New Holland Mining, a less than stellar performer on the ASX whose last act of bastardry was to consolidate their shares at several HUNDRED :1. I'm starting this thread to warn people to research past performance of NHM before investing. I know nothing of NGY and do not want to, i'm merely starting this as there is no thread and ASF investors should be alerted of past failures

 

[springhill]

Time to review NGY after my original post some time ago.

I am not that competent, technically, when it comes to analysing gas volume and rates, and how they compare to other companies in the sector. If someone could add some expertise from the information I provide that would be fantastic.

NGY have 2 project areas, in Indonesia and Tanzania.

Indonesia

NGY operate 3 licenses in Sumatra, Muara Enim (40%), Muara Enim 2 (30%) and Rengat (100%), covering 4819 square kms.
Coal seams >43m and gas content in the order of 7.25Bcf/km² proven in Muara Enim. This result extrapolated over Muara Enim 1 & 2 indicate a GIP resource net to NGY of 4.43Tcf.
At a 50% recovery factor and the minimum Govt guaranteed gas prices for CBM, this resource has a gross sales value of US$16.6 billion. The key to unlocking this value is now proof of production and permeability.

The results of laboratory testing on coal cores from Muara Enim Well #1 are as follows:
Gas Content - 115 scf/t (daf).
Gas Composition - 92.7 % to 98.3 % for CH4. - Minor CO2 .
Gas Saturation - 88 %.

Muara Enim PSC Well # 2 – Initial Laboratory Results On the Suban Coal Seam Confirm High Methane Content and Gas In Place Estimates and Suitability of Location for Pilot Well Development
Calorific Value - 35.1 – 37.95 MJ/m3

Gas Composition - CH4+ 99.080%
- CO2 0.025%
- Hydrogen 0.230%
- Nitrogen 0.5920%

Coal Quality - Ash content 2.95 - 11.67%.
Moisture content 12.58 - 15.66%
Relative density 1.32 -1.36 g/cc.

Tanzania

NGY have also entered into an unconventional gas agreement with IEC (with whom they have a common director)
http://www.asx.com.au/asxpdf/20120604/pdf/426n9pmx152x06.pdf

At the moment they have 200m shares on issue, with $9m in the bank.
Director holding is strong with Graeme Robertson, alone, indirectly (through Aspac Mining Ltd) holding 30.5m shares.

How much value is there in this company? Seems positive for future SP increase to my (very) untrained eye.

 

[Knobby22]

You damned the management of this company in your first post.
Has the management changed?

 

[springhill]

And deservedly so, i was lucky to bail out with no loss just before they crashed. That was 5 years ago and different projects were involved.
Previous directors Dom and Luke Martino and Gavin Harper all left inbetween March-May in 2011.

 

[burglar]

You damned the management of this company in your first post.
Has the management changed?

"Just one look, that's all it took!"

 

[springhill]

Any thoughts on their current project as outlined Knobby, Burglar?
Does that chart justify their current projects?
Pre 2007 you can see why i slammed them, probably 2010 onwards is the relevant part of the chart

 

[Knobby22]

I actually think the charts not bad. It has flattened while gas prices have fallen.

Worth putting on a watchlist and buying if sp start to rise.

 

[burglar]

I actually think the charts not bad. It has flattened while gas prices have fallen.

Worth putting on a watchlist and buying if sp start to rise.

I would agree, especially about turning north before buying.
But I need to scrape up some cash first.

 

[burglar]

Any thoughts on their current project as outlined Knobby, Burglar?
Does that chart justify their current projects?
Pre 2007 you can see why i slammed them, probably 2010 onwards is the relevant part of the chart

QPN are claiming "nearology". I find the QPN chart quite alluring!!

 

[springhill]

Director Edward Warrand (indirectly) buying on market today.
450,000 shares for a cash value of $36,450.

http://www.asx.com.au/asxpdf/20120618/pdf/426wg86dmmv09g.pdf

 

[springhill]

NuEnergy Granted Exclusive Prospecting Licence for CBM and Shale Gas Exploration in Malawi
http://www.asx.com.au/asxpdf/20120709/pdf/4279mlq2blsjxf.pdf

The Prospecting Licence, signed by Malawi’s Minister of Energy and Mining, grants NuEnergy the exclusive rights to over 346 square kilometres of prospective CBM ground in the south of Malawi for a period of 3 years and involves carrying out the following under the terms and conditions:
- Geological and geophysical studies;
- Evaluation of potential CBM and shale gas resource;
- Market, development and commercialisation studies; and
- Drilling if resource evaluations are positive.
Other conditions include:
- Commencing operations within 3 months;
- Annual programme reporting to the Minister;
- Minimum MK 62,500,000 (circa. A$225,000) expenditure per annum; and
- Employment of local citizens and use of local goods and services.

Of particular economic interest in the prospecting license area in terms of both coal bed methane and shale gas potential are the coal shales of the Permian Ecca Series which appear to be in the order of 600m thick. Based on past geological studies of the area:
- the bituminous coal shales are expected to underlie most of the licensed area at an attractive exploration depth; and
- several of the coal seams are of good quality with up to 74% fixed carbon content.

 

[springhill]

http://www.asx.com.au/asxpdf/20120910/pdf/428lr02w0b186h.pdf

● INDEPENDENT RESOURCE CERTIFICATION
● PILOT TEST UPDATE
● ON TARGET TO PRODUCE FIRST COMMERCIAL CBM GAS IN INDONESIA

 

[springhill]

NGY touches 10c today for the first time since April this year.

● INDEPENDENT RESOURCE CERTIFICATION
● PILOT TEST UPDATE
● ON TARGET TO PRODUCE FIRST COMMERCIAL CBM GAS IN INDONESIA

NuEnergy Gas announces results of the independent resource certification by Netherland Sewell & Associates Inc. (NSAI) for its South Sumatra Production Sharing Contracts (PSCs), Muara Enim (ME) and Muara Enim II (ME2).
Independent Resource Certification – 7.8 Trillion Cubic Feet (TCF) Gas-in-Place

The Chairman, Mr Graeme Robertson, commented:
“These pleasing certification results provide the foundation for future growth in certified gas resources and reserves and support the plans of the company to produce and sell CBM from its South Sumatra PSCs. The feasibility plan and the current pilot well evaluation justify a plan of development in 2013 for the first sale of coal bed methane (CBM) in Indonesia to major domestic and international gas buyers.”

This resource certification, based on recent drilling results, supports the commercial potential of the ME and ME2 PSCs.
The Chief Executive Officer, Mr Chris Newport remarked,
“These results show NuEnergy is focussing on evaluating the economics of a 10 to 100 million cubic feet per day gas development at the Muara Enim PSC.”

Strategic Location of PSCs
ME and MEII are located adjacent to major gas pipeline infrastructure which connects to the following critical markets:
● Singapore gas pipeline (+1.1 billion cubic feet (BCF) per day),
● Chevron Duri Steam Flood, and
● Jakarta gas markets.
The Singapore and Duri Steam Flood gas markets offer the opportunity of oil equivalent gas
prices in the order of 80-90% of the Indonesian Crude Price Index.

Pilot Test:
NuEnergy is focused on commercialising gas by:
 laterally stimulating the Suban and Mangus coal seams using coiled tubing radial jetting technology;
 conducting cased hole testing and determining the permeability of the coal seams;
 testing coal seam produced water quality; and,
 dewatering of the Suban and Mangus coal seams at the Pilot Well#2 site from September 2012.
The company is planning to install small scale power generation units at the ME Well#2 site for self-generation and the sale of power into the local power grid.
The minimum gas price of $7.50/mmbtu is guaranteed by the Indonesian Oil and Gas Regulator, BPMIGAS.
Pilot Plant
Gas sales from the CBM pilot plant are intended to increase in 2013 by expanding pilot production well drilling and up-scaling of the on-site power plant to approx. 4 MW.

 

[springhill]

Latest NGY chart

 

[springhill]

Apologies as I am lacking the time to look into the latest on NGY at the moment, but hit a high of 12c recently and would be up around 100% if you bought in at the lows a few months ago.

 

[greggles]

Some funny business going on with NGY recently. The share price has shot up from a low of 2c on Friday to a high of 10.5c today.

As one might expect, the ASX become very interested in this dramatic share price increase and sent the company a Price Query Letter. In its response, the company stated that it had no information that it should have announced to the market that might account for the substantial share price increase and it had no explanation for it:

The Directors are unaware of any other explanation for the recent trading in its securities.The Directors confirm that with respect to the Tanjung Enim PSC, the approval of Tanjung Enim POD 1 is still in progress. The Muralim PSC is still being prepared for submission.

A very curious situation.

With nothing else to go on, it would appear that someone is taking a significant position in NGY. Why is anyone's guess.

 

[barney]

Some funny business going on with NGY recently. The share price has shot up from a low of 2c on Friday to a high of 10.5c today.

As one might expect, the ASX become very interested in this dramatic share price increase and sent the company a Price Query Letter. In its response, the company stated that it had no information that it should have announced to the market that might account for the substantial share price increase and it had no explanation for it:



A very curious situation.

With nothing else to go on, it would appear that someone is taking a significant position in NGY. Why is anyone's guess.

Funny Business indeed G!

The VWAP today was about 7.7 which is close to where it closed today. Lots of gaps on both sides of the market depth so a higher Open tomorrow won't surprise. What happens after that is anyone's guess.

Way too steep of a ride for my old ticker lol. I'll stick to the Dodgem Cars for my thrills

 

[greggles]

Funny Business indeed G!

The VWAP today was about 7.7 which is close to where it closed today. Lots of gaps on both sides of the market depth so a higher Open tomorrow won't surprise. What happens after that is anyone's guess.

Way too steep of a ride for my old ticker lol. I'll stick to the Dodgem Cars for my thrills

Gravity has taken control today and the NGY share price has sunk 23.1% to finish at an even 6c, which was its low for the day. Still no announcements, so unless there's some compelling reason for the share price to stay up, it will probably continue to come down.

 

[barney]

Funny Business indeed G!

The VWAP today was about 7.7 which is close to where it closed today. Lots of gaps on both sides of the market depth so a higher Open tomorrow won't surprise. What happens after that is anyone's guess.

Way too steep of a ride for my old ticker lol. I'll stick to the Dodgem Cars for my thrills

Pretty much went script ...

Opened a bit higher Pushed even higher for a short term

Then reality set in ... ie. Traders start leaving the building

Where it goes, nobody knows.

Positive at the Open again tomorrow would be my guess, but it could be short lived.