OSH - Oil Search

[The Mint Man]

Just an observation on OSH guys.
I think that this one has been flying under the radar lately, just going about its own way and not getting much attention either here or in the media.

Since the lows of the correction, which from memory seen OSH below $3.25, OSH has just been going up, bit by bit, slowly but surely, but not enough to show up on any day traders radar, thats for sure.
However when you look at its small gains over each day up until now it adds up to around 15% profit. For anyone who got in around a month ago this is nothing to sneeze at.
Further more, over the last couple of days, when most stocks have been a bit off OSH has managed to add over 1.5%

Cheers

 

[explod]

Just an observation on OSH guys.
I think that this one has been flying under the radar lately, just going about its own way and not getting much attention either here or in the media.

Since the lows of the correction, which from memory seen OSH below $3.25, OSH has just been going up, bit by bit, slowly but surely, but not enough to show up on any day traders radar, thats for sure.
However when you look at its small gains over each day up until now it adds up to around 15% profit. For anyone who got in around a month ago this is nothing to sneeze at.
Further more, over the last couple of days, when most stocks have been a bit off OSH has managed to add over 1.5%

Cheers

They ought to have news on a deal to supply Japan with LPG from the large resevoir in NG any time soon which will give a fair lift IMHO

 

[numbercruncher]

erm ... whats going on ?

Must be good whatever it is

@10.11 6m traded and 18pc up ..... Tempting to jump in ?

 

[Junior]

Anyone have any information? OSH is currently on a 17% gain for the morning but with no news/announcements.

 

[chops_a_must]

Anyone have any information? OSH is currently on a 17% gain for the morning but with no news/announcements.

Yep.... I'm wondering what the hell is with that 20% gap up on a blue chip. Haven't seen anything like that before. Takeover rumour perhaps???

 

[Sean K]

Yep.... I'm wondering what the hell is with that 20% gap up on a blue chip. Haven't seen anything like that before. Takeover rumour perhaps???

Wouldn't be surprised if the Chinese are sniffing....I sold out when it broke down, so watching on the sidelines....Vely intelesting...

 

[explod]

Yep.... I'm wondering what the hell is with that 20% gap up on a blue chip. Haven't seen anything like that before. Takeover rumour perhaps???

Someone knew something Friday on the action then. Strange that something is not coming through



.................................................................

 

[Da Cat]

Oil Search and Nexus both got some positive coverage on ABC's Inside Business on Sunday morning (talking mainly about their JVs with big players). Nexus up a little this morning as well. May explain the interest?
The page hasn't been updated this week yet, but here it is:
http://abc.net.au/insidebusiness/

 

[blues]

Rumour of possible bid from CNPC this morning probably explains the jump in share price.....

Cheers.

 

[redandgreen]

Rumour of possible bid from CNPC this morning probably explains the jump in share price.....

Cheers.

just head confirmation of said rumour on ABC radio.

nothing confirmed though.....probably worth a punt

 

[The Mint Man]

very good news. have to see what happens. But Ill be sticking to my original plan, that being hold OSH until 2010.
Heres the OSH ann:

TAKEOVER SPECULATION​

17 September 2007

Following speculation in a recent article in the South China Morning Post,
Oil Search would like to confirm that it has not received any formal
approaches by any party in regards to a take-over.
The Company continues to discuss potential participation in a range of
proposed gas developments in PNG with a number of international
companies.

PETER BOTTEN
Managing Director
OIL SEARCH LIMITED

 

[mime]

Damn I sold this one at $4.2 or so a while ago. Let's see what happens in the future. Any idea if this speculation will flow onto other energy stocks?

 

[The Mint Man]

If you sold at $4.20 then you did so before the last correction which saw it at around $3.25 by the end of it..... I would have bought back in once it started going back up

EDIT: I would say OSH will make Lateline Business tonight. Will also be interesting to see what the AFR has to say tomorrow... Maybe someone could post it up

 

[The Mint Man]

Hey guys,
If you missed Lateline Business last night then you will want to watch it here http://www.abc.net.au/reslib/200709/r184144_683326.asx
OSH was the lead story, first up and got quite a wrap... very good exposure I think I will be holding on for the ride somehow
Just so you know, the link above is for broadband, windows media player.

If your not the video type though I have supplied the transcript below

Shares in Oil Search surge​

Australian Broadcasting Corporation
Broadcast: 17/09/2007
Reporter: Neal Woolrich

Rumours of Chinese interest in another Australian resources company have seen its shares soar today.

Transcript
ANDREW ROBERTSON: Rumours of another Chinese interest in Australian resources companies have seen shares in Oil Search soar today. The company rose nearly 12 per cent on reports it could be the target of a $6 billion takeover from a Beijing-backed energy giant. Oil Search denied the claims, but analysts say the company's proven reserves could make it very attractive. Neal Woolrich reports.

NEAL WOOLRICH: The ink is barely dry on Woodside's $35 billion gas sale to China and now the economic powerhouse is rumoured to have another Australian energy source in its sights. Newspaper reports say the China National Petroleum Corporation and Petro China are considering a $5.9-billion bid for Oil Search. The company says it's had no formal takeover approach from any party, but analysts argue that Oil Search would make an attractive target.

HOWARD ELTON, INERSUISEE: A number of oil and gas companies would be looking at Oil Search as a company that has got some substantial reserves and that is worth doing some real in depth research.

CARLO CAIANI, CAIANI & CO: It's a very good mid-sized oil and gas asset. BHP Billiton, among others, had been looking at it for a while. We're surprised actually it hasn't gone before. It's got production at about 10.5 million barrels of oil equivalent.

NEAL WOOLRICH: The takeover rumours sent Oil Search's share price climbing by 11.5 per cent, and helped Tap Oil gain 5 per cent, and AED more than 3 per cent.

HOWARD ELTON: Oil Search is much more significant in scale than Tap, which has a more modest-sized oil fields in Western Australia, and AED, which is a very niche operator that's just about to start producing in the Timor Sea. They may find more oil, but they're not of the scale at this time, that Oil Search is certainly.

NEAL WOOLRICH: Carlo Caiani says Oil Search is now trading on a price earnings multiple of more than 60, and the rumour of a bid for the company is another sign that the Chinese are willing to overpay for assets.

CARLO CAIANI: I wouldn't say desperate. They're willing to overpay. They import about 50 per cent of their crude oil requirements. That is set to increase over time, and essentially they're going to have to just overpay for assets to secure the energy requirements. It's as simple as that.

NEAL WOOLRICH: A bid could come at the top of the market with some analysts forecasting a fall in commodity prices because of a slowdown in the US economy.

CARLO CAIANI: That will have a far greater effect on the world economy than most people think. We do believe that a number of mineral commodities; copper, zinc; the base metals, nickel will go down quite hard. Iron ore we think will go down whether it's next year or the year after depending on negotiations.

NEAL WOOLRICH: Investors are now pinning their hopes on the US Federal Reserve giving the American economy a much-needed boost. The Federal Open Market Committee meets again tomorrow and is expected to deliver an interest rate cut of at least a 0.25 per cent.

So what are your thoughts on this one people???

Cheers

 

[mime]

OSH as a PE ratio of around 60 right now. That's very high. I'm guessing they have large reserves to get this kind of interest. I'm hoping they turn their attention to BPT.

 

[The Mint Man]

OSH as a PE ratio of around 60 right now. That's very high. I'm guessing they have large reserves to get this kind of interest. I'm hoping they turn their attention to BPT.

China wants it, OSH got it... simple as that.

On another note, OSH is currently $4.46. Hasnt been this high for quite a while (may 06?), its nearing its all time high.

Cheers

 

[kerosam]

ex div today. where to next? i thought OSH held up quite well... subjective i guess

got in today at $4.29... with POO still going strong, i'm hoping for another run to above $4.40.

:

 

[It's Snake Pliskin]

That gap that hasn't been filled seems like a giant gravity machine Will it draw the price in?

I don't doubt the longer term story, but I would love to see the gap close up. I hate gappy charts. My bias.

 

[Trader Paul]

Hi folks,

OSH ..... figure this one should break out, about
midweek and finish strongly .....

..... and the OSH chart:

OSH to gap-up again soon ...

This will be the intermediate gap, so even after that, there should be
yet another exhaustion gap, before it pulls bake to test support .....

happy days

paul

 

[The Mint Man]

Well OSH is looking good ATM, with the quarterly report just out.
talks with the new government in PNG seem to be going well. Exploration is on track although Yemen was a little disapointing. Costs are expected to increase next quarter, however this is a given with the AUD and the forward plan for activity over the next few months.
OSH has performed very well over the last year or so, besides the market correction that is, which it has more than made up
Anyway I'll stop rambling, below is the Highlights from the Ann today, you will need to find it on ASX or your brokers site to view the whole thing.

O I L S E A R C H L I M I T E D​

(Incorporated in Papua New Guinea)​

REPORT TO THE AUSTRALIAN STOCK EXCHANGE
Activities for the Quarter Ended 30 September 2007​

23 October 2007

HIGHLIGHTS
• Total oil and gas production for the third quarter of 2007 was 2.563 mmboe, 4% higher than in the second quarter of 2007 and 10% higher than the corresponding period in 2006. The average production rate for the period, net to Oil Search, was 27,870 boepd.

• Sales revenue for the quarter was US$178.4 million, compared to US$177.8 million in the second quarter of 2007. Sales revenue for the first three quarters of 2007 totalled US$471.3 million, up from US$457.2 million in the corresponding period of 2006.

• Revenue was based on total oil sales during the period of 2.263 million barrels, 2% lower than in the second quarter. The lower sales volumes were offset by continued excellent oil prices, with the average realised oil price of US$77.28 per barrel setting a new record for Oil Search. The Company remained unhedged during the period.

• During the quarter, work continued on pre-FEED activities for a major world-scale LNG development operated by ExxonMobil. This included the commencement of discussions with the newly-formed PNG Government on fiscal issues and negotiations between the various field groups on unitisation. These activities remain on track to be completed by the end of 2007/early 2008, at which time a FEED decision will be made.

•In September, an application to renew two Petroleum Retention Licences covering the south part of the Hides field and the Angore field, was submitted to the Department of Petroleum and Energy.

• The Company’s expanded exploration drilling programme continued in PNG and the Middle East during the quarter. In PNG, the Juha 4 well discovered a new and separate gas/condensate pool close to the original
Juha discovery. In the East Ras Qattara block in Egypt, the Rana-1 well lowed oil on test, representing the third successful exploration well in the licence. Production from this block remains on target to commence in the fourth quarter of 2007.

• Oil Search’s balance sheet remains sound. At the end of September, the Company had a net cash position of US$405 million, compared to US$476 million at 30 June, with the decline primarily due to a major tax payment in July and working capital movements. US$65.1 million was spent on exploration activities during the period.

Heres a snip from the Managing Director, Peter Botten.

Oil Search’s 2007 third quarter production was 4% higher than in the second
quarter. During the period, a solid production performance was seen at all our
mature PNG fields, a good achievement given that this was realised without any development drilling, demonstrating the success of our day to day production optimisation activities.
Oil Search’s realised oil prices rose once again during the quarter, and averaged a new record for the Company of US$77.28 per barrel, despite a fall in the Tapis:WTI premium. As a result of continued buoyant oil prices, total operating revenue for the first nine months of the year was US$489 million, 5% higher than in the corresponding period of 2006, even though total liftings were 1% lower.

Cheers