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ODE - Odessa Minerals

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Re: MAE - Marion Energy

There is so many profitable undervalued O&G plays on the ASX its impossible to have money for them all. Unfortunately our market just doesnt give them decent recognition.

People would rather chase spec stocks with no income :2twocents
 
Re: MAE - Marion Energy

I tend to think the market is starting to take notice of this one.. perhaps not ASFs... Good volume again today and closed pretty well ..
 
Re: MAE - Marion Energy

Looks like another good day touched $1.25 hanging around $1.15, announcement re appointment of Goldman Sachs to look an maximising share holder value with current income streams.. plus some indication of further reserves being investigated.. I think there may be some further good news coming out soon plus some more big players getting on board..
 
Re: MAE - Marion Energy

Few people have mentioned to me that todays announcement might just be put out to stop mae getting a speeding ticket over the last few days whilst people are taking a position for forthcoming ramp in production / reserves...
pure speculation but I hope this is the case..
 
Re: MAE - Marion Energy

Another positive opening... any opinions on what is driving the buying? i think it could be a potential resource upgrade or that fact the Goldman is interested. i've heard they don't really touch anything under $1bn (i.e. the stock is still cheap!):D:D

cheers
dale
(holding)
 
Re: MAE - Marion Energy

Marion increases 2P Gas reserves to 319 Bcf of gas following
further acquisitions in Helper and Jester-Bloomington
Projects: Purchase of USA assets from Odyssey
Energy Limited (ASX: ODY)

Well ODY has bennefitted very well from this !!!
Hope there is some good upside for MAE..

I think this company is really starting to move ,, good income streams and taking actions ..
 
Re: MAE - Marion Energy

Interested in any comment on the near term prospects of this one.

Based on recent announcements they have stated

* MAE expects to achieve budgeted production levels with minimum near term target of 20m cubic of gas per day.
*a new reserve report will be commissioned after end of June 2008 quarter.
* MAE have identified 700 drilling targets in their prospects
* engaged Goldman Sachs to conduct a review focusing on strategic alternatives. In my words - MAE have engaged GS to shop it around to the highest bidder
* today they announced purchase of ODY share in some gas fields - "this aggregation of interests will simplify in unlocking the value". - in my words - make it easier/cleaner to sell.

based on current m/cap and stated expected minimum of upgrade in reserves any sale price would be multiples of current sp.
-----------------------------
Am I off with the pixies?
 
Re: MAE - Marion Energy

Just huge upside from here. Goldman has been hired. Get Ready !! Excellent Patterson analyst report out.
 
Re: MAE - Marion Energy

Roadster said:
Just huge upside from here. Goldman has been hired. Get Ready !! Excellent Patterson analyst report out.
Click to expand...
Can you define 'huge' for us Roadster? What should the company be valued at? That may take a few facts and figures. 'Get ready!!' for what? Is the Pattersons report available to anyone? If not, perhaps you could post the highlights? Cheers, kennas
 
Re: MAE - Marion Energy

Thats the latest report from Hartleys I can find 19th June with a $1.53 target..

http://marionenergy.com.au/download.php?id=353


I would like some reports / feedback on the purchase from ODY is this a good purchase, is the price good etc ?

I would like to see an upgrade of $1.53 to.. with current shareprice of $1.30ish if there isnt a substantial upgrade I will consider jumping out and taking some profits for time being ..
 
Re: MAE - Marion Energy

They currently have 300 or so BCF of gas, 1P is about 1/3 and 2P 2/3. thats potentially worth about $500 mill now when recent prices have been around $3 1P and $2 2P reserves. The biggest upside is from the reserve upgrade which will follow sustained production rates.

The current reserve estimate was based on decades old production when old technology and well spacing was 1000 acre. They now hav fractue stimulation and other tehniques plus directional drilling. That means that in the rough terrain of clear creek (10000 feet mountains) they can drill multiple wells from the one pad and "drain" a much bigger area.

At helper they discovered a new producing layer, Pre MAE drlled wells at helper produce about 2.5mmcf of gas per month, the latest one they drilled flowed initially at 1.5mmcf per day!

There could potentially be between 500 and 1000 bcf increase in reserves (1, 2 and 3 P).

Gas prices are increasing and a new delivery pipeline is currently in construction and parts online to deliver gas from the rockies to the eastern states.

With a current market cap around $300 mill we could see 3 - 4 times that of inground assets, I think we could already get decent reserves at 3-6 mmcf per day but if they hit 20+mmcf per day we will see huge gains.

Check out this site for production info etc its behind about 3 months buthas everything about current wells etc

http://oilgas.ogm.utah.gov/Statistics/PROD_CBM_opers.cfm

This company has always had the goal of increasing value then selling after many years it would seem we are near the end which ever way it goes.

PS im in 100% with this baby from 69c after following for 3 years in and out, Im dreaming of buying a nice fishing boat in a couple months:D
 
Re: MAE - Marion Energy

ODY is trading at a good discount compared to MAE seen as its baically a derivative of MAE, with 25 mill shares at $1.25 thats $30 mill, ODY's market cap is $25Mill.

The only problem is ODY desn't have any real prospects of its own now, what happens say if mae is sold and ODY SP peaks when it cashes in. Wouldn't it be hardo sell ODY at this time as there is no real upside potential and a good chance the company will use a least part of the money to build the business? I can't see them paying a dividend :eek:
 
Re: MAE - Marion Energy

adobee said:
Thats the latest report from Hartleys I can find 19th June with a $1.53 target..

http://marionenergy.com.au/download.php?id=353


I would like some reports / feedback on the purchase from ODY is this a good purchase, is the price good etc ?

I would like to see an upgrade of $1.53 to.. with current shareprice of $1.30ish if there isnt a substantial upgrade I will consider jumping out and taking some profits for time being ..
Click to expand...

The 1.53 price target is only for current reserves. MAE are commissioning a new reserves report end June Qtr 2008. Which will see significant upgrades and also with GS shopping them around. Holding for the next few weeks maybe beneficial.
 
Re: MAE - Marion Energy

Holding for now as market sentiment seems positive (even if a lack of interest on ASF).. I think with cash now flowing they may get a bit more aggressive and really start speeding things up bring online extra wells, increase production etc..

there must be some other rumours around, I cant see this many people buying the fact in this market ..
 
Re: MAE - Marion Energy

Im a bit confused as to why anyone would even think about selling before the reserve upgrade?

Even if it is way smaller than expected the current SP is justified by what they currently have let alone any increase.
 
Re: MAE - Marion Energy

KIWIKARLOS said:
Im a bit confused as to why anyone would even think about selling before the reserve upgrade?

Even if it is way smaller than expected the current SP is justified by what they currently have let alone any increase.
Click to expand...

When is there a reserve upgrade coming out .. ?
If it takes a while and interest dies off this could tumble back down as quickly as its gone up...

That said I think we will be set for a week at least as people will hold of any profit taking before the end of the financial year..
 
Re: MAE - Marion Energy

They said it will be started at end of this quarter, no doubt goldman will do their own estimation as well.
Basically to book reserves they needed to identify drill targets, prove stabilised production rates and other economic factors. I reakon it will prob be 6 - 10 weeks before the report but in the mean time we can expect more ann about
1. Increasing in prodcution - they did say they were on target to deliver 20mmcf + per day by end of quarter up from the 3- 6 mmcf. I think it may take a bit longer but we will most likely at least see +10mmcf.
2. Sale of oklahoma assets - They may still sell seperatly or wait and sell the whole company but Oklahoma looks more advertising now that they have a much bigger area thanks to ODY's land.

I reakon Pato's will up their target once we get more of these milestones achieved, either way I personally don't think MAE will exist by Xmas.

I got a lot of this info from talking to directors and other large holders everyone seems to be very optimistic. My personal price target is $X, I many people believe it culd even go beyond that :eek:
 
Re: MAE - Marion Energy

Article from deal.com on the 19/06/08

After recovering from a slowdown that followed an onslaught of severe weather, gas explorer and producer Marion Energy Ltd. is considering a sale and is already in talks to sell its assets in Oklahoma.

To help it explore its options, Victoria, Australia-based Marion Energy said Thursday, June 19, it hired Goldman, Sachs & Co.

Marion Energy CEO and managing director Jeff Clarke said in a phone interview that the company had always intended to market the company, either as a buyer, seller or joint venture partner.

However, no specific route has been chosen yet. "We just started the process," Clarke said, noting that a timeline hasn't been established. "We'll see what [our advisers] recommend."

One analyst had predicted a possible asset sale. Foster Stockbroking Pty. Ltd. analyst Paul Allard wrote that he believed "that the value in Marion is to be found in its assets and that a sale of these assets is the probable scenario for shareholders."

All of Marion Energy's assets are either in Oklahoma or Utah, and the ones in the latter were battered by seven months of snowstorms. The Utah operations are humming again and are able to produce amid the uptick in gas prices.

The company announced earlier in June that its operations had returned to near-normal levels and that natural gas sales had reached a combined gross rate between 3 million and 6 million Mmfc, or cubic feet of gas, per day.

In a research note, Patersons Securities Ltd. analyst Scott Simpson noted that Marion Energy's operations were back on track after the severe weather significantly delayed the buildup of gas production.

Simpson in March recommended buying Marion Energy's stock, putting a target of $1.32 on it. It traded at around 71 cents. In the aftermath of the Goldman Sachs hiring, it rose 11% in intraday trading on Thursday to $1.13. Simpson had also said the company has an opportunity to capitalize on current gas prices, which have remained strong.

The Energy Information Administration, in its June 12 natural gas weekly update, projected that the Henry Hub spot price will average about $11 per Mcf, or thousand cubic feet, in 2008 and 2009. (In May, it averaged $11.65 per Mcf, up $1.16 per Mcf from April.) The price increase was the result of lower imports of liquefied natural gas, higher oil prices and concerns about the adequacy of inventories, the update noted.

Total natural gas consumption is expected to grow by 2.2% in 2008, and then increase by another 0.9% in 2009.

Besides exploring strategic alternatives, Clarke said the company is already in discussions with several bidders for its assets in Oklahoma.

The possible divestiture of these assets was announced in May.

Marion Energy has a market cap of about $319 million.
 
Re: MAE - Marion Energy

my broker assures me there is more upside to current prices but can not give indication on price that may reach.there is also talk of a takeover on the cards .i think the next 6 months will be interesting as im sure alot of fluctuating in price will take place , good opportunity for astute day traders.been holding this one for a while as signs look good.
 
Re: MAE - Marion Energy

into a trading halt this morning, something about a capital raising. didn't sound to me like they were short of cash now that they just hooked up some pipes.

does it sound like were getting any closer to the 'strategic evaluation' and the independant reserve report from Goldman Sachs??

Grrr:banghead:
 
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