toc_bat said:thanks YT
i thought BCPL was only interested in buying NWEs north sea blocks, not Timorese,
North Sea Blocks 48/1b and 2c and the Timor Sea AC/P32 permit
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 Drilling is expected on block EP368, in which Norwest holds 10 per cent, though it has just withdrawn from EP437, because of a higher risk exposure (33 per cent).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.
YOUNG_TRADER said:Closed nicely and 2 clicks above 15c support level
15c if held for the rest of the week should provide very good support
Can you provide a link along with that? Cheers!YOUNG_TRADER said:Anyway an article I found
chops_a_must said:Can you provide a link along with that? Cheers!
It even avoided the Friday afternoon small cap sell off, good signs.
toc_bat said: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
The Pro said:AC/P32 received minimal institutional support, and quite rightly. An $800million float with 50mmbbl, just didn't add up
doctorj said: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.
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