NWE - Norwest Energy

[toc_bat]

thanks YT

i thought BCPL was only interested in buying NWEs north sea blocks, not Timorese,

 

[YOUNG_TRADER]

Take a look at AED, there has been some huge accumulation lately, its amazing


Lots of $1m buy orders (alomst 200k @ $4.70 = $940k)


And with NWE lots of $100k buys today as well, someone knows something we don't and I bet its related to AED/NWE puffin field

 

[YOUNG_TRADER]

thanks YT

i thought BCPL was only interested in buying NWEs north sea blocks, not Timorese,

Are you kidding, after AED has found 40m -120m barrels of oil, everyone wants a piece of those surrounding Timorese blocks.

 

[toc_bat]

North Sea Blocks 48/1b and 2c and the Timor Sea AC/P32 permit

oh yes .... i ought to read more comprehensively

 

[X888]

NWE doing well hitting .165

 

[YOUNG_TRADER]

Closed nicely and 2 clicks above 15c support level

15c if held for the rest of the week should provide very good support

Anyway an article I found

03.01.2007
Norwest Energy Putting Finishing Touches To Its Puffin Oil Field Development
Nowadays, Perth-based Norwest Energy has a strong international flavour with assets spanning the UK, USA and India. But it is events closer to home that will most likely dominate the headlines in the year ahead.

The company, which is quoted on the Australian and Frankfurt stock markets, is looking at first cash flow from the Puffin oil field development in the Timor Sea – in which it holds a 1.25 per cent interest – during 2007. Current estimates suggest a start-up time of around June, with initial production of 30,000 bopd.

Better still for Norwest is that the development work led by operator AED Oil Ltd comes at no cost to the firm, which holds the same stake across the whole AC/P22 block. This block holds considerable upside with numerous prospects yet to be drilled.

According to Norwest, the potential royalty cash flow from Puffin alone will be around A$33 million based on P50 reserves of 40 million barrels and an oil price of A$50 per barrel. Norwest CEO Joe Salomon says this will be a massive boost for the company, generating income for future project expenditure.

Nearby the company holds a much juicier 30.1 per cent stake in block AC/P32, operated by Coogee, an area surrounded by production and discoveries. The group plans to sink a well in this area sometime after May 2007.

A bunch of wells are also being lined up for the onshore Perth Basin too. Drilling is expected on block EP368, in which Norwest holds 10 per cent, though it has just withdrawn from EP437, because of a higher risk exposure (33 per cent). On block EP413, Norwest (1.278 per cent) also expects to see the Freshwater Point exploratory well kick-off during the first half of 2007. Close by, it expects oil flow at Jingemia in L14, 340 km from Perth, to return to 4,500 bopd following recent development drilling to arrest production decline. Again, Norwest holds a 1.278 per cent participating interest.

Despite this flurry of local activity, things are progressing across the sea. Despite a gradual withdrawal from the US market, including the recent sale of its West Virginia shale project, it remains bullish about its overseas portfolio.

In the UK, Norwest is looking to extend its presence in the Southern Gas Basin and is waiting on a couple of permit applications. Going forward, India is coming into play, with the establishment of a New Delhi office, and a number of deals reportedly on the table. Here, Norwest is keen to take a slice of the increasingly active upstream but it also lining up potential forays abroad with Indian partners.

The first concrete step was a co-operation pact with Bharat Petroleum Corporation Ltd, India’s largest refiner, for joint exploration overseas. Under the deal, Norwest will act as project leader to pinpoint opportunities for further collaboration. Salomon says the tie-up underlines Norwest’s Indian and international ambitions. The company is eyeing other markets too including Africa.

 

[Sean K]

Closed nicely and 2 clicks above 15c support level

15c if held for the rest of the week should provide very good support

Once again YT, you've picked a winner. (For the moment)

Well done!

Technically, I think you are right, but I think it might hold above the support level Monday creating more confidence in the recent uptrend and breakout.

Really should have seen this coming 2 months ago. Hey, actually, you did!

(holding)

 

[chops_a_must]

Anyway an article I found

Can you provide a link along with that? Cheers!

It even avoided the Friday afternoon small cap sell off, good signs.

 

[jtb]

Can you provide a link along with that? Cheers!

It even avoided the Friday afternoon small cap sell off, good signs.

http://www.oilbarrel.com/news/article.html...ed=oilbarrel_en

 

[toc_bat]

i too think that the new ann will see a price drop, although it isnt entirely negative, it confirms negotiations are in the pipeline,

by the way what is the difference between an upstream oiler, a downstream oiler, and just an oiler?

thanks

wrong again, was i,

Obviously longer term this has more potential, as soon as the BCPL deal becomes officially ann'd via the ASX, and if something about puffin and AED is ann'd too as YT has often pointed out. It is likely though that the highs of 17.5 were encouraged by HC ramping, talk of T/O etc.

 

[YOUNG_TRADER]

Hmm holding up nicely,

A few more 5m volume days with trading and closing a few clicks above 15c will lay the foundations for a strong support base

 

[Sean K]

Still looks like it's broken up on the 3 year chart. Hopefully 15s the support line now.

 

[The Pro]

Hello to alll, this is my first post on this forum. I have been a long term holder of AED and know their situation extremely well. It wasn't until a day or two ago that i started to do some research on NWE.

The deal with Bharat Petoleum seems a little strange, Indian media reports that the deal is complete, using percentages and $ amounts. Yet NWE says its still in negotiations.

Does anyone know any more about the potential deal with BPCL, and if so what do they believe it is and what impact would it have on the share price.

AED will be releasing their next reserve statement when the new COO has a chance to go over all the reports. Officially starts in late January, should be out within the next two weeks.


Cheers

 

[doctorj]

You could try looking at what NDO sold there blocks for to assess the deal based on the numbers the indian press have made available.

Also, add what NWE are likely to receive to their current cash holding then compare that to their market cap. Then consider there income stream and add to that its likely to be upgraded.

It's a shame it took a ramp on HC to get some life into this stock. It's an oiler with a good income stream and interest in some highly speculative blocks. Not many small cap oilers have good blocks AND the income to fund drilling.

 

[The Pro]

Cheers Doctorj, i have known for a while about NWE and their relationship with AED however never did any research until a couple of days ago. I wouldn't pay any attention to the wild t/o rumour. People are trying to make theories up, why would a $3billion company want to deal with a $30million company???

Anyway it will be very interesting to see what the BPCL deal is, AC/P32 received minimal institutional support, and quite rightly. An $800million float with 50mmbbl, just didn't add up. Compare this with AED, they are worlds apart.

I really think this company could be something big, would love to keep this forum going, any input would be very beneficial for all of us. I know AED's situation very well and am happy to answer any questions regarding them.

Cheers

 

[toc_bat]

AC/P32 received minimal institutional support, and quite rightly. An $800million float with 50mmbbl, just didn't add up

hi Pro, im an amateur and not quite sure what you are talking about here, could you expand on the above statement?

thanks

 

[spottygoose]

Announcement - approval for continuation of UK Block 48. No padding on that announcement..

 

[YOUNG_TRADER]

Having another crack at 17.5c resistance levels,

Will need around 5-10m volume to clear it and will need to get up to 19c so that 17.5c can then form support


Until then in 15c Strong Support and 17.5c resistance channel

I think that right now the SP is being driven by this Indian JV which is really good,

However for longer term value we need those reseve upgrades from AED, watch for a rund in AED over $5 to signal reserve upgrade coming out

 

[doctorj]

That announcement was very interesting in its brevity.

My understanding of it is to have successfully negotiated for the block, they must have agreed to a forward drilling program for it. In all likelihood this means they'll announce to market, this week or next, that program. As they're unlikely to go it alone, expect farm-ins and maybe some cash up-front for NWE as consideration.

 

[YOUNG_TRADER]

That announcement was very interesting in its brevity.

My understanding of it is to have successfully negotiated for the block, they must have agreed to a forward drilling program for it. In all likelihood this means they'll announce to market, this week or next, that program. As they're unlikely to go it alone, expect farm-ins and maybe some cash up-front for NWE as consideration.

Very interesting Doc,

I didn't know that,

Well looks like NWE have finally inked the deal with BPCL

Can't wait