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NXS - Nexus Energy

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tech/a said:
Thanks to all those who bought strongly today.
Had a nice day trade. 49c to 58c
"Buy the rumor sell the fact"
Click to expand...

Not a bad win Tech

What prompted you to get into the game with this one? You trading the funnymentals or the technicals here?

Cheers
jman
 
Getting lots of broker coverage now

http://nexusenergy.com.au/assets/97/Files/NXS%20External%2020081008.pdf
http://nexusenergy.com.au/assets/97/Files/NXS141008.pdf
http://nexusenergy.com.au/assets/97/Files/NXS%202008-10-09.pdf

Hartleys, Patersons and Bell Potter all pretty much esposuing the same message; that NXS looks to be substansially oversold, but do note that NXS remains a relatively risky O&G play. I do agree with their opinion that a new farm-in partner for Crux may have to be enticed with a larger % at a slightly discounted price to reflect current global trends.

Enjoy
jman
 
Funny how things work out sometimes isn't it? The MD had to sell 1.5m shares 10 days ago or so due to a margin call. He got 55c for them. I guess he could buy at least some of them back again around 40c today!
 
This company is looking a little shaky with bulk debt and no revenue. Its running out of ROC shares to sell...
 
Based on broker report

Hartley - target price in 12 mth is $1.59 - buy
Bell Potters target price $0.92 - speculative buy

Thats like 2-3 times current price

anyone has any thought on the share price when the suspension lifted on
18 March 2009 ?
 
Suspension of shares extended till 31 march 2009
since they failed to sell the Crux stake

They say its hard to sell because of the global condition and the oil price, but the oil price today almost hit $50... (increase of around $15 since its lows couple weeks ago)

Any thoughts ?? started to worry now.... !!!!
 
Amazing, I remember reading brokerage reports that cited NXS as the next WPL, how the mighty have fallen

I am really surpirsed that they are struggling to sell an energy project though, maybe they just want too much? I would have thought the Chinese would have happily stumped up cash for a large energy project, just take a look at the CSG sector lots of big $$$ deals being done there

Ddin't Shell buy one of NXS's projects? or am I thinking of someone else
 

yea, I think Shell did bought the Crux (see below)

judging from below, they are desperate for cash but not "that desperate"

that's why they suspend the shares till the next announcement on 31 March 09 when the debts are due

best thing they can get is they sell the Crux at an "acceptable price" and they finalise the finance/debt problems, and they get lower prices for their suppliers (which is a miracle if all 3 can happen )

as per 31 Dec 2008 Financial Report

they have $57,511,000 of current liabilites they need to fund while they only have cash of around $51,678,000(short by $5,833,000 before paying any other related operating expenses, interest, etc)

Quoted from: http://www.businessspectator.com.au/bs.nsf/Article/Nexus-project-on-ice-$pd20090318-Q98X4?OpenDocument&src=srch

"Nexus project on ice

Nexus Energy has put its billion-dollar condensates project on hold after failing to receive an "acceptable" offer for all or part of its 85 per cent stake in the Crux offshore oil and gas field in Western Australia.

Having fielded interest from local and international companies, Nexus says the weak oil price – currently around $US48 a barrel – and ongoing deteriorating financial conditions have hurt its divestment process.

The Melbourne-based oil and gas explorer says it now expects to make an announcement on asset sales, debt raising alternatives and significant contractual obligations by the end of the month.

In an announcement today, Nexus said the "indicative offers and expressions of interests received by the company to date at the asset and corporate level have not as yet converted into acceptable firm offers”.

It added that while it would continue to consider offers, it "will not actively market an interest in the Crux liquids project at this stage".

Nexus has an 85 per cent stake in the project, with Osaka Gas owning the remaining 15 per cent. The project, believed to hold 55 million barrels of condensate (light oil reserves), was due to start production in the first half of 2011. Nexus signed a $US40 million deal several years ago to sell the Crux gas reserves to Shell Australia, with Shell assuming ownership of the permit and rights to extract the gas and remaining condensate in 2021.

Deutsche Bank AG was hired in October to manage the sale after Japanese trading house Mitsui & Co withdrew from a deal to buy a 25 per cent stake for $US255 million. In November, chairman Michael Fowler said the company would consider bids for the whole company. The company has said it was open to selling more than the 25 per cent eyed by Mitsui, and willing to undertake deals with multiple parties.

Alas, it was not to be.

Nexus recently reported a 67.8 million loss for the six months to December 2008, and in its financial report on 17 March, the company said it was undertaking a divestment process to raise additional funding and negotiate with certain suppliers for reductions in commitments.

The company said it hoped to boost cash flow to the tune of $100 million through asset sales and more favourable debt packages.

The company has also announced the resignation of chief financial officer Peter Thomas, who had been in the role for six months. A replacement has not been named. "
 

Yes, management are under pressure for sure,

This has been causing me a few grey hairs during the last 6 months I have to say. As we've been told, the global search for a potential "buyer", or farm-in partner for Crux has not resulted in an acceptable outcome for NXS.

I suppose we should be greatful that NXS didn't cave-in to some carpet-ball offer and sell off their stake in Crux for less than it is worth, and for that I am also thankful. I haven't been following the development with Longtom for a while, but I understand it's due to come on-line in a few months?... they definitely need some cashflow generation.

jman
 
Another extension to the suspension till mid May 08

What is happening to this company?
 
It is a really unnerving time to be a NXS holder for sure. These extensions are getting a little ridiculous tbh, the longer this goes on the more it looks like they're fast running out of cards to play.

It was a good result to offload the Libra Exploration permit for $19M, and although Crux has substansially more latent value than NXS have debt, the problem is that they need cash in the short-term, perhaps even the long promised cash earnings from Longtom are not going to be enough.

Nothing to do but wait and see what happens unfortunately!

jman
 
kkyyoo said:
Another extension to the suspension till mid May 08

What is happening to this company?
Click to expand...

Went past a nice country house the other day
Word its the chiefs ?

Looks like he's got a fair old extension being built
Fantastic views too
Really nice spot
He must still have a few cookies still left in the old jar yet

Maybe i should keep an eye out for you guys just in case work stops ?
 
So the latest way for a company to avoid the market and investors is to simply go into trading halt until the sun starts to shine again

Makes me wonder how much cash they are churning through in the meantime, shades of OZL again (I got bitten on that one).
 
Nexus Energy Limited (“Nexus” or “Company”) is pleased to announce that it has reached agreement on the conditional sale of a 50% interest in the Longtom gas project (VIC/L29) (“Longtom”) and associated exploration permit (VIC/P54) to AED Oil Limited (“AED”). This transaction delivers Nexus near term funding and upon completion of the sale will provide new capital to fund activities under the revised strategy well into 2010.

The conditional sale of a 50% interest in Longtom to AED for A$155 million represents an opportunity for significant new funding from a part asset sale at a sensible price.

Nexus look to have saved themselves by giving up half of their Longtom project to AED. A clever move that will ensure an immediate payoff while allowing them to keep Crux for the future without having to sell it off at a reduced price now. I can't wait for trading to begin tomorow!
 
Well MTrader. Tradings begun alright with a big sell off. Oversold? Maybe an opportunity to buy more?
 
jancha said:
Well MTrader. Tradings begun alright with a big sell off. Oversold? Maybe an opportunity to buy more?
Click to expand...

this kind of stock is always oversold at open, people have waited months for the suspension to be lifted. once opened, a lot of ppl just dumped it on market. IMO, NXS isnt in that bad of a shape, although it does have about $200m debt, but its current cash should cover it all, with the current MC, its assets r worth next to nothing... the problem now is find a decent farm in partner...
 
Not very happy with todays result, cant say I saw it comming.
Anyone know why sp suffered so bad?
Cheers
 
Yea didnt see this coming too

With Oil prices hitting months High @ $65 (compared to $40 at the start of trading halt), and agreement for sale of Longtom asset, the share should be driving up =='
 
Yea, I'm the same.

Bought at opening thinking there is a lot of upside, can't understand it but you can't argue with the market.
 
Yes there was a big sell off but you have to think that after a trading halt of that length there are bound to be a lot of people wanting out. I have been watching this stock for a while and was delighted to triple the amount of shares I already had at a bargain price of 31c.
 
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