NWE - Norwest Energy

[chops_a_must]

Crazy aggressive buying this morning.
Someone really wants them.
There was 800k in sells at the .25 mark now long ago. Now all gone

They either got pulled... or taken out in one hit.

But fantastic buying. Looking absolutely awesome right now. Could really have a huge day if this volume keeps up. The sell side has been looking very thin over the last few days...

 

[Sean K]

Any clues to what's driven this the past few days. Just general acceptance that it's undervalued? Or, is this Bill Bloking (surely not his real name ) a good find?

Pretty good looking chart over the past 6 months. Up 150%. New support established down around 21 cents now. 20 ish probably better. Breaking to the circle currently.

 

[nizar]

Kennas, their free-carried 1.25% royalty from AED is of Puffin is worth more than their current market cap.
Take into account exploration and increased of production upside and we are talking maybe $100million over 5 years.
Their current market cap is about $45million.
The market is only just waking up to this stock.

Looking back my BIGGEST mistake is selling too early, im not making that mistake again with this one and with my others.

Im aiming for multiples, not percentages.

 

[spottygoose]

Thanks for the chart. It has been a great open today - momentum has been slowly building on this one. It can be attributed IMO to the message getting out there via some recent broker reports, Bill Bloking's appointment is a real coup and also Joe Solomon is presenting this week at a conference so perhaps word has been filtering out though pre-conference matierial. It is all good and just the beginning according to those brokers.

 

[Peakey]

WiseOwl also had an ADD reconmmendation on them over the weekend which may have stimulated the pre-open depth this morning.

 

[nizar]

Still a long way to go to the open but looking like a strong open for this with bids>asks at every price level.
Id rather she open even as opposed to a gap up (i guess 1-tick gap up is okay) to give her room to run all day and another white candle.....

 

[spottygoose]

And she is flying. Looks like yesterday's conference put NWE on a few more radars. Still a long way to go until it reaches it's full potential (as per broker reports and research). Announcement is out this morninging "Excellence in Upstream Presentation".

 

[spottygoose]

Thanks to Ead83 for his summary:

Good presentation, i can understand why its rocketing today!

In a nutshell:

Current Market Cap: ~$50 million (yesterday's close)
Cash: $7.8 million

Income
- Forecast Short Term Revenue from Puffin(AC/P22, Timor Sea): $70+ million based on identified reserves with potential upside from undrilled prospects. Zero expenditure for NWE based on 1.25% ORR

- Income from Jingemia: $1 million p.a. Operated by ARQ with further exploration upside

Assets
- 24.1% in AC/P32 (Timor Sea); 3d seismic data already acquired, drilling early 2008, operator Coogee Resources, BPCL as partner, possible farmdown to free-carry
- 25% 48/1b&2c (offshore UK); reserves to 95 BCF upside to 450 BCF, existing 3d seismic data, possible drilling in 2007, farmed out to BPCL/Tata for covering up to USD $23 million in drilling costs, Norwest costs minimal.
-25% of 3 blocks in Inner Moray Firth region, 50% of 2 blocks in Southern Gas Basin (UK offshore)

Business Development
- India office a great success securing MOU's with giant companies; BPCL, TATA etc.
- Joint bids with strategic partners for projects on a global scale.
- High emphasis on adding value through farmout of existing assets to partners, and maintaining a superior ROI.
- Very strong board, with vast experience in most major regions in the world.
- Many projects where Norwest can 'punch above its weight' in terms of leverage, due to miniscule drilling costs post farm-out.

 

[mick2006]

Just watching the trading over the last hour the buy side support has sat almost unmoved at 25c and above, with all the buying action happening from off screen with people jumping in and buying up what is on offer.

Will be an interesting last hour if the buyers lined up at 27c and above want to get in before close, we have just hit 29c and hopefuly on our way towards 30c.

Good to see the price of oil is up slightly in asian trade another plus!!

 

[noirua]

"Excellence in Upstream" Presentation: http://www.asx.com.au/asxpdf/20070522/pdf/312kmt64ydmyq5.pdf

 

[mick2006]

Strange to see NWE move down today when AED was so strong. NWE down 5% AED up 8%. They have been moving in tandem over the last couple of weeks.
Perhaps some catching up for NWE over the rest of the week.

With the royalty on the puffin fields, every extra barrel found by AED is cash in the bank for NWE.

And with such a strong move for AED perhaps people are betting on further exploation success, which of course is in turn good for NWE which could provide some good leverage to any upside to the puffin oil fields.

Anyone have any thoughts on the share price divergence today between AED and NWE?

 

[Serpie]

Profit taking from NWE today after a long wait and a strong week.
There's a gap to be filled at 26.5 as well, so I think 30 was looming as the next ST resistance and the sell off started at 29.
A couple of days of consolidation should see us away again. At least this is on a few more radars now.

 

[mick2006]

Seems like the profit takers may have run their course, very strong support above 25c and buyers willing to snap up anything at 27c.
Should remain firm in the short term, awaiting news from AED in relation to the first oil from the Puffin Oil Fields. Which NWE has a royalty of $70 million plus over around 5 years, not including any upside from further exploration in which estimated oil in place could double the field size and thus NWE royalties.

Also the oil price should remain firm heading into the peak US driving season and also the Hurricane season

 

[mick2006]

wow just blew straight threw 29c with one huge 500k now nearly blown through 29.5c. I guess people are finally realising how much puffin is really worth to NWE not to mention all the other projects still to come.

 

[bernardp]

Sure is flying mick, was a nice suprise on a Monday morning...

Looking very solid again, well done to all holders for this one!

 

[Sean K]

Clear break through the top of the small pennant. Target around 34 cents short term. I find it hard to see it racing to this level as it's run pretty hard the past week or so. I think it'd be jumping out of a BB if there was one over this chart. Still, that's what that little pennant tells me.

 

[mick2006]

NWE is certainly on fire today with continued on and off screen buying, just smashed through the 30c level. Good to see some filling in on the buy side as it is going up. Now only a few left at 31c stopping what could possible be a really nice break to the upside.

 

[bernardp]

NWE has certainly cured my Mondayitis at work this morning, what a wonderful start to the day!

Go you good thing... great support!

 

[nizar]

I doubled my position today at .295 once the .29 previous high was broken.
I think this ones gonna run hard.
**Royalty worth more than current market cap** - well, not for long

 

[mick2006]

certainly very strong yesterday morning breaking through last weeks high of 29c very easily and hitting 31c before abit of a retrace. Would be good to see some follow through today back up to the 30.5-31c level. Sell side is looking skinny up to 30.5c.