NWE - Norwest Energy

[YOUNG_TRADER]

Hung over very baldly but will try attempt toanswer

If 9years of cash flows then roughly use a PER of 7, so if 3.8c x 7 = 26.6c

 

[djones]

1 year (with short and long term spt/resistance) below. now 17 has been broken again, it should be support.

Looks likely to fall below 17c support today. This is very dissapointing.

 

[YOUNG_TRADER]

Held 17c,

Can't believe its weak performance though,

Time for bed goodnight melbournians

 

[juddy]

Gee Chops,

I hope nobody listened to your NWE ramps on other threads (they'd be pretty peeved). Looking very weak atm. Maybe a lesson there for you.

cheers

 

[surfingman]

Gee Chops,

I hope nobody listened to your NWE ramps on other threads (they'd be pretty peeved). Looking very weak atm. Maybe a lesson there for you.

cheers

Hey Juddy,

Do you want to private message chops and sort out your indifferences....

Ive read too much crap getting posted over an argument which developed from who knows where and who really cares?

 

[juddy]

No, I'm pretty happy to comment on the state of the NWE sp.

 

[chops_a_must]

Looking very weak atm.

Not really.

Both AED and NWE are sitting on new found support (NWE very nearly took out .175, and there isn't much between here and .19). It's not a surprise really considering the resistance they came up against Friday. NWE has also been sold off over the last two days along with most mid and small cap oilers. Given that a lot of speccie oil stocks were absolutely hammered today, it's not a surprise to see this one struggle either.

If it takes until first oil for the next push up, then so be it. But I don't suspect it will. News from Jingemia, Bounder and India should all help to put upward momentum on the price. Income of more than double the present market cap is just ridiculous.

 

[juddy]

Not really.

Income of more than double the present market cap is just ridiculous.

Yes, but you are looking at income over 9 years here (assuming flow rates are up to expectation). Income this year will be 7 million and given that income is from royalties only, and given the checkered history of NWE the assignment of an undervalued PE by the market is very possible.

Given this and a long wait until real flow rates are confirmed the sp may drift into the low teens. The market reaction to the announcement on friday was a good indication that this is likely.

 

[chops_a_must]

Yes, but you are looking at income over 9 years here (assuming flow rates are up to expectation). Income this year will be 7 million and given that income is from royalties only.

Given this and a long wait until real flow rates are confirmed the sp may drift into the low teens. The market reaction to the announcement on friday was a good indication that this is likely.

I don't think so and who cares where it comes from?

Just look at the buyers depth. After the Friday announcement, the bulk of sellers moved up from 17 and 17.5 to 19.5 and 20. There is a reason why they haven't followed it back down.

As to the income, who cares from where and how it comes? It gives them a lot of resources to target new projects. Long wait, hardly.

And now with the experience of Bill Bloking on board, I'm confident about the decision making and prospects of the company. Just look at MRE, previous poor performance certainly does not rule out excellent future performace. Especially with new blood.

 

[chops_a_must]

If it takes until first oil for the next push up, then so be it. But I don't suspect it will. News from Jingemia, Bounder and India should all help to put upward momentum on the price. Income of more than double the present market cap is just ridiculous.

Like I was saying. They've found more oil at Jingemia.

Also, while all the noise was going on last week. NWE was busy buying up North Sea acreage that they didn't announce...

Norwest back on market's radar Francine Pennington
Friday, 9 March 2007
AFTER a long dry spell, minnow explorer Norwest Energy surged ahead on the Australian Stock Exchange this week.



Norwest is hoping Wisteria will deliver good results
Shares in the company shot up 21.9% to close at 19.5c hot on the heels of a mid-week announcement that a former BHP Billiton senior management member was joining its board.

Bill Bloking has joined Norwest as a non-executive director, after recently retiring as president of Australia/Asia gas in BHP's petroleum division.

Last month, Norwest announced two pieces of news regarding its Timor Sea operations that would have renewed investor interest.

Its 2005 entry to India finally appeared to be paying dividends, after Norwest brought Indian oil giant Bharat Petroleum Corporation (BPC) into its AC/P32 permit as a farm-in partner.

In return for a 20% interest in the permit, which was where operator Coogee Resources drilled the high-profile Magnolia-1 well, BPC has agreed to pay the partners $US1.42 million ($A1.82 million) to cover the cost of previous work.

Looking ahead, the joint venture is likely to drill the Wisteria prospect, a relatively simple tilted fault block structure largely covered by 3D seismic with mean reserve potential of 45MMbbl.

Importantly, Wisteria is a less complicated structure than Magnolia.

On the weekend, Australian Minister for Trade Warren Truss mentioned Norwest in a speech made while visiting India.

"Co-operation in the oil and gas sector is another good news story in our bilateral relations," said Truss, who at the time of leading a 50-member business delegation in the country was witnessing the signing of two offshore deepwater exploration licences to Santos in India.

"[Santos'] announcement comes on the heels of other smaller Australian oil and gas exploration companies such as Oilex and Norwest working in various states in India in consortium with Indian partners."

Last month, Norwest calculated it could earn $33 million in cash flow as a result of its 1.25% royalty holder in AED Oil's Puffin oil field in the Timor Sea. Not long after announcing this news, it also picked up further exploration acreage in the chillier waters of the North Sea.

 

[blues]

Interesting news from Encore last night about Block 48 & BPCL deal.

PRESS RELEASE
For immediate release: 13 March 2007

EnCore Oil plc ("EnCore" or the "Company")

EnCore Farms Out Interest in Blocks 48/1b & 48/2c to New UKCS Entrants

EnCore Oil plc (LSE: EO.) is pleased to announce that today it entered into a
farm-out agreement with Bharat Petroleum Corporation Limited ("BPCL") and Tata
Petrodyne Limited ("TPL") whereby BPCL and TPL will each acquire a 25% interest
in southern North Sea Blocks 48/1b and 48/2c from EnCore and NWE Southern Cross
(UK) Pty Limited ("Norwest"). EnCore and Norwest will each retain a 25%
interest in the licence with EnCore as operator. The interests retained by
EnCore and Norwest are subject to a production royalty.

Under the terms of the farm-out agreement, BPCL and TPL will each pay 40% of the
costs of drilling an appraisal/development well on the 48/2-1 discovery,
originally drilled by Amoco in 1984, up to a total gross cost of US$23
million. The well is expected to be drilled in 2008.

The farm-in to Blocks 48/1b and 48/2c marks the entry of BPCL and TPL into the
UK North Sea oil and gas sector. BPCL is a leading Indian downstream company
with primary interests in the refining and marketing of petroleum, and has
recently moved into upstream activities, with interests in exploration blocks in
India, Oman and Australia. BPCL is part-owned by the Government of India (66%).
TPL, a subsidiary of Tata Sons Ltd, is primarily involved in the exploration of
crude oil and natural gas with interests in three Indian oil and gas blocks. The
Tata organisation is the largest business group in India, and recently acquired
the Anglo-Dutch group Corus for $11.3 billion.

This agreement is subject to the usual regulatory consents, including DTI
consent.

Alan Booth, EnCore's Chief Executive Officer, said:

"We are especially pleased to be entering into this new partnership with BPCL
and TPL, both well established and highly respected Indian corporations. With
this partnership, we look forward to re-drilling the 48/2-1 discovery. We
believe the use of modern drilling techniques could unlock the commercial
potential of this licence, as has been recently demonstrated by drilling in
nearby blocks."

 

[Sean K]

Interesting news from Encore last night about Block 48 & BPCL deal.

Yeah, more solid news for this minnow, but the general maket's going to drag it down through 17 cent support I think. Momentum is down now, after the Puffin upgrade which was built into the price by the look. Buy the rumour, sell the fact. Could find itself back at 15 support shortly with general market sentiment turning ugly.

 

[nizar]

Yeah, more solid news for this minnow, but the general maket's going to drag it down through 17 cent support I think. Momentum is down now, after the Puffin upgrade which was built into the price by the look. Buy the rumour, sell the fact. Could find itself back at 15 support shortly with general market sentiment turning ugly.

Yeh im not sure with this one, could well go as low as 15, im gonna see where she bounces before even thinking about taking a position.

 

[YOUNG_TRADER]

I took my money out yesterday at 17c-17.5c for a nice profit during a correction

I gave it monday for the mkt to appreciate ann, it didn't was warned about 2nd leg of correction yesterday so took money off, will be back in though,


So far

Ist 12c -17c

2nd 15c/15.5c - 17c/17.5c

Have missed the 20c top twice now

LT this stock has strong fundamentals supporting it,

I was thinking it would probably be easier once AED gets oil flowing to buy out NWE's royalty with say a $40m cash payment or something, I'd say NWE would definately take it, very spec idea I know

 

[jtb]

I took my money out yesterday at 17c-17.5c for a nice profit during a correction

Yeah me too, have retreated to fortress OEL for all my oiler money

 

[djones]

Someone doesnt want the 17c resistance broken, quite a bit of action today and back up 1c to 17.5c. Theres currently 250,000 buy for 17.5c and 550,000 buy for 17c, it seems this resistance will hold at least another day, I would be very happy with a close on 18c or 18.5c, only 300,000 shares to buy to get there.

Edit: One of the 17c bids just changed it to at market it seems so now its up 1.5c at 18c.

 

[mobcat]

Ann out today Only confirmation of Jing 23 m oil column closed a little higher I think it might be ready to realise its true value.

Puffin ann coming anytime any news you guys I like NWE it is so undervalued the market will realise the value soon I feel.

 

[LifeisShort]

Has anyone seen the updated report from Carmichaels revising the valuation to 36.5c due to a couple of new developments....Thats double to what it is right now

 

[chops_a_must]

Given this and a long wait until real flow rates are confirmed the sp may drift into the low teens. The market reaction to the announcement on friday was a good indication that this is likely.

Yep. Sure is looking pretty week.

Has been consolidating rather nicely hasn't it? The overhead resistance on the sell side has been thinning out.

A specualtive buy recommendation in yesterday's Sunday Times. Still looking really good to me. Everything going to plan at AED. Costs only a tad higher than they had forecast. As always, happy to be holding.

 

[Sean K]

Has anyone seen the updated report from Carmichaels revising the valuation to 36.5c due to a couple of new developments....Thats double to what it is right now

LIS, is there any chance of getting a copy? cheers.