NWE - Norwest Energy

[blues]

For NWE followers interesting release by Encore last night.

In addition to the 18/5-2 well, EnCore expects to participate in a further six offshore and two onshore wells in the next 18 months in a programme comprising:

48/22-C – Cirrus exploration/development well operated by Perenco UK Limited
42/13-B – Breagh appraisal well operated by Sterling Resources (UK) Ltd
47/9c-B – Barbarossa appraisal well operated by Venture Production plc
48/2-B – Bounder appraisal well operated by EnCore
28/9-C – Exploration well operated by Oilexco North Sea Ltd
21/30-S – Exploration well (operator to be confirmed)
Markells Wood – Onshore exploration well operated by Northern Petroleum plc
Leigh Park – Onshore exploration well operated by Northern Petroleum plc

Good to see Bounder getting a mention.

Cheers.

 

[chops_a_must]

Good to see Bounder getting a mention.

The price action is absolutely silly. Considering the action on AED... maybe I should pick up more here...

 

[chops_a_must]

Well and truly on the breakout. Glad I bought more the other day... lol!

 

[jtb]

Well and truly on the breakout. Glad I bought more the other day... lol!

Sell side has fattened right up as well, but yes its been a long time coming.

Go Norwest

 

[Sean K]

I took some money off the table on this last month, but it seems to have held up quite well, and it now looks like 17 c could be good support.

Has anyone got a final analysis of the value of Puffin to this, and was it upgraded. Sorry if it's been covered, I was on the beach....

 

[spottygoose]

Total value to NWE = AU $41 million.

 

[blues]

On the 20/2 NWE brought out an announcement saying that for the NE1 and the NE2 areas the royalty stream is estimated at $41 million based on oil price of US$50 and exchange rate of 0.75c.

AED should announce Puffin SW reserves next week.

Cheers.

 

[Sean K]

Thanks guys. This does look like a good minnow to me. I originally bought in just on the chart, but looks like a decent longer term prospect doesn't it. Cheers.

 

[Sean K]

I notice that the VPE ann in regard to the Jingemia-11 Oil Development Well drilling has NWE with a 1.2% interest. I don't quite understand how NWE develop these % royalties. How did they get into this one, and what are they doing to potentially earn 1.2%? VPE claim this field could contain up to 4.6 m bl of recoverable oil. At $60 bl, that's $27.6b x 1.2% = $33m. How much per barrel would actually flow to NWE?

 

[catihouse]

I notice that the VPE ann in regard to the Jingemia-11 Oil Development Well drilling has NWE with a 1.2% interest. I don't quite understand how NWE develop these % royalties. How did they get into this one, and what are they doing to potentially earn 1.2%? VPE claim this field could contain up to 4.6 m bl of recoverable oil. At $60 bl, that's $27.6b x 1.2% = $33m. How much per barrel would actually flow to NWE?

I think you have a decimal point in the wrong place.
4.6 mbbl of oil at $60 at 1.278% for NWE is $3,527,280. Not $33m

 

[Sean K]

I think you have a decimal point in the wrong place.
4.6 mbbl of oil at $60 at 1.278% for NWE is $3,527,280. Not $33m

ooops, Thanks!

 

[chops_a_must]

I notice that the VPE ann in regard to the Jingemia-11 Oil Development Well drilling has NWE with a 1.2% interest. I don't quite understand how NWE develop these % royalties. How did they get into this one, and what are they doing to potentially earn 1.2%?

I don't know, and I don't care. All I know is that I made a fortuitous and profitable buy on it yesterday. Seems to keep laying these golden eggs everywhere.

 

[YOUNG_TRADER]

On the 20/2 NWE brought out an announcement saying that for the NE1 and the NE2 areas the royalty stream is estimated at $41 million based on oil price of US$50 and exchange rate of 0.75c.

AED should announce Puffin SW reserves next week.

Cheers.

Having originally bought in at 12c and sold out at 17c for a tidy profit a month ago, I was lucky enough to be able to buy back in yesterday at 15c-15.5c

With 200m shares the current $41m NPV of Puffin is worth 20c NWE+

As Blues pointed out more reserve upgrades are due out, the question is how big will Puffin end up being,

Anyway its trading at a 25% discount to its Puffin Royalty alon, then you add in Jingemia its other UK + Indian Interests etc etc

 

[spottygoose]

And a new Director appointed - Bill Bloking, ex-bhp with a wealth of experience.

 

[YOUNG_TRADER]

Certainly does seem to have a wealth of experience, especially in the North West Shelf

 

[YOUNG_TRADER]

I also like the fact that his 3m Option package is well out of the money,

1M @ 22.5c

1M @ 27.5c

1M @ 32.5c

ie he wants them to have value, well he (management) need to add value!

 

[blues]

Spoke to the company and AED have said SW Reserves will be out by the end of this week which should be a boost to NWE.

Cheers.

 

[spottygoose]

Yes that is right blues. A good day all round for nwe - bill bloking, the options package that YT has pointed out and now news that AED will release SW results by the end of this week. Seems odd to get the announcement about the announcement but it seems to me that things are falling into place rather nicely.

 

[Sean K]

NWE holding at 15 cents long term support. I'm generally concerned about the market at the moment, and not sure how good news right now will effect NWE, but other stocks have been climbing amidst the gloom. WMT for eg. Perhaps this can have a run with some solid news. This 15 cent level looks solid. For now...

 

[YOUNG_TRADER]

Additional Note – Puffin South West Resources
AED has previously advised that it is will be releasing Oil Initially In Place information relating to the Puffin South West area. It was expected that this information would be available by the end of February 2007. The Company wishes to advise that the information will be released by the end of this week.


As stated currently Puffin is worth $41m to NWE = 20c or so

Noticed NEO shot up 50% Intra Day on some possible good oil interssections whilst drilling of a minority interest well,

You'd think NWE's Attributable NPV value would at least get the same effect if not more