OXX - Octanex Limited

[ormond]

Anybody taken a look at this recently listed ASX stock which had previously been listed on the NSX.
Octanex N.L. is an Australia-based company engaged in petroleum exploration and investment. The Company holds direct and indirect interests in 11 petroleum exploration permits in the offshore basins of Australia, with a concentration of these permits on the Greater North West Shelf offshore from Western Australia. These permits are located in areas of intense exploration activity. Five of these located in the offshore Exmouth Sub-basin (WA-384-P, WA-385-P, WA-394-P, WA-322-P and WA-329-P). Two permits are located in the Dampier Sub-basin (WA-323-P and WA-330-P) and a further two permits are located on the Exmouth Plateau (WA-362-P and WA-363-P). The other two are in the offshore Otway Basin (EPP34 and Vic/P61) in south eastern Australia.
They also have an application for a permit in NZ'S Taranaki basin.
30 million in cash and investments totaling 13 million.
Very tightly held stock so certainlly not one for the traders.

http://www.octanex.com.au/

 

[Donga]

Re: OXX-Octanex

Anybody taken a look at this recently listed ASX stock which had previously been listed on the NSX.
Octanex N.L. is an Australia-based company engaged in petroleum exploration and investment. The Company holds direct and indirect interests in 11 petroleum exploration permits in the offshore basins of Australia, with a concentration of these permits on the Greater North West Shelf offshore from Western Australia. These permits are located in areas of intense exploration activity. Five of these located in the offshore Exmouth Sub-basin (WA-384-P, WA-385-P, WA-394-P, WA-322-P and WA-329-P). Two permits are located in the Dampier Sub-basin (WA-323-P and WA-330-P) and a further two permits are located on the Exmouth Plateau (WA-362-P and WA-363-P). The other two are in the offshore Otway Basin (EPP34 and Vic/P61) in south eastern Australia.
They also have an application for a permit in NZ'S Taranaki basin.
30 million in cash and investments totaling 13 million.
Very tightly held stock so certainlly not one for the traders.

http://www.octanex.com.au/

They captured my attention when I read about them a few weeks before they listed and added to my portfolio last week. I haven't researched the permits in depth but recall a couple sounded very interesting and the board seemed savy. Glad it won't be a trader stock but that can cut both ways

 

[ormond]

Re: OXX-Octanex

They captured my attention when I read about them a few weeks before they listed and added to my portfolio last week. I haven't researched the permits in depth but recall a couple sounded very interesting and the board seemed savy. Glad it won't be a trader stock but that can cut both ways

Geoffrey Albers looks to have a good track record as a company director which was one of my reasons for investing in OXX.
Interesting to note that 80% are held by the top 20 shareholders so this could move quite quickly on news.

Mr. Albers is a company director with over 30 years experience as a lawyer and administrator in Australian corporate law, petroleum exploration and resource sector investment. During this period Mr Albers has sponsored the formation of companies that have made the original Maari (Moki) oilfield discovery and development in New Zealand, the Yolla Gas/Condensate discovery in Bass Strait, the Evans Shoal gasfield discovery/ appraisal in the Timor Sea, the Oyong and Wortel gas/oil discoveries in Indonesia and the SE Gobe oilfield development in Papua New Guinea. He is a director of Australian publicly listed companies; Octanex N.L., Cue Energy Resources Ltd, Moby Oil & Gas Limited and Bass Strait Oil Company Ltd. He is a member of the Petroleum Exploration Society of Australia and a Fellow of the Institute of Directors in Australia.

 

[ormond]

Octanex NL (ASX Code : OXX) is pleased to announce that its wholly owned New Zealand incorporated subsidiary, Octanex NZ Limited, has been granted Petroleum Exploration Permit 51906 by the New Zealand Ministry of Energy.

PEP 51906 is strategically located in New Zealand’s only producing hydrocarbon basin, the Taranaki Basin. It covers an area of 1,613 kms ² and is adjacent to three existing producing fields; the Maui gas/condensate field to the east, which has been in production since 1979, the Tui oil field to the north east, which has been producing since 2008, and the Maari/Manaia fields to the south, which have been producing since the beginning of this year.

The Work Programme
The permit 5-year work programme requires Octanex NZ to:
• Reprocess 1500 km of existing seismic data.
• Within 18 months, either commit to the acquisition of up to 1,000 km of new 2D seismic data or relinquish the permit.
• Within 42 months, either commit to the drilling of well or relinquish of the permit.
Octanex NZ has undertaken an extensive review of the permit area, in anticipation of the permit being granted.

Very nice permit to pick up but the NWS is the main game.

Liquidity or lack of, is certainly one problem with this stock.

 

[Wysiwyg]

Drilling planned for mid January next year and it appears the early birds are set. Associated with Shell, ENI and Santos and according to their print are well positioned financially, participation and royalty wise for any success in the future.

In the northern Exmouth Plateau permits OMV and ENI completed the Schiele 3D seismic survey covering 3,955 km ² within WA-362-P and WA-363-P. Following interpretation, a drilling decision and related commitment was by OMV and ENI. Shareholders can look forward to the drilling of two very important wells in these permits, commencing as soon as mid January 2011.

 

[Synergy]

This was a system trade that I was sad to exit for a small profit.

From the small amount I read I was hoping to stay in the trade for a little longer but wasn't to be. Certainly looks like it has a bright future, with holders on another site feeling they are really onto a winner. Liquidity is very low, so could really go bananas on good news.

 

[BESBS Player]

Given the way many BESBS plays are not rising significantly in this current market, I've decided to buy in over the last 4 weeks and try some luck here. I suspect that this one might be flying under the radar a little.

While hoping for some drilling action soon, I have a longer term focus...

Acoording to the Quarterly,

* Shell have stated that they intend to drill Palta-1 in WA 384-P in Q4 2012. They have booked the Noble Clyde Boudreaux rig for the drill.

* Santos have the Ensco 109 rig booked to drill in WA323-P permit in Q1 13. Knowing the energy game, hopefully H1 13. OXX have a 25% free-carry here.

From a BESBS (Buy Early Sell Before Spud) perspective, OXX has some factors that limit risk (as a BESBS) and offer significant potential leverege:

- Historically, the SP is near record lows (so should provide a relatively stable platform).
- Historically, drills have seen SP 100 -200% more than current levels so plenty of SP leverege
- JV partners are reputable
- rigs are booked
- decent sized targets in (by global standards) a politically stable country
- Unlikely OXX would have CR ar this low level. If it occurs, probably when SP rises further.
- Shares seem to be tightly held. Has taken a while to buy a decent sized parcel. When drilling occurs, this can sometimes help the SP to run if no recent CR.

Time will tell if I have egg on the face...

Holding OXX at 14.5c ave

 

[BESBS Player]

Still trying to buy cheapies...

Noticed that John Campbell had a positive review of OXX (with a 12 month outlook) in his last Oli & Gas Weekly.

 

[BESBS Player]

Great buying at present...

Holding at 13.5c ave

 

[BESBS Player]

Starting to move.
I think some are just starting to realise the potential value here.

Holding at 13.5c ave

 

[urgalzmine]

Starting to move.
I think some are just starting to realise the potential value here.

Holding at 13.5c ave

What's the plan? They just announced shell drilling will you wait for santos or get out now since you are ahead by 50% plus now

 

[BESBS Player]

Hi Urga,

I intend to wait for a while into the drill and see if we can move 20c+. Given we have Winchester in 2013 (which should be much higher profile), there is some chance that we might see some late entries into OXX. I do intend to sell before results and will most likely re-enter as a Buy on Bad News if the opportunity presents itself. If Palta hits blackgold, I might still re-invest some funds for a pre-spud run into Winchester. Thats the plan at this stage.

Cheers,
BESBS

Holding at 13.5c ave

 

[JJBM11011]

Hi Urga,

I intend to wait for a while into the drill and see if we can move 20c+. Given we have Winchester in 2013 (which should be much higher profile), there is some chance that we might see some late entries into OXX. I do intend to sell before results and will most likely re-enter as a Buy on Bad News if the opportunity presents itself. If Palta hits blackgold, I might still re-invest some funds for a pre-spud run into Winchester. Thats the plan at this stage.

Cheers,
BESBS

Holding at 13.5c ave

More than happy to buy even at these levels upside huge per well . have 3 in the near term....(OMV final decision date of Matuku any day now ?)

done basic values on targets if commercial discoveries I believe value per share =>50c -$1.50 now this is working on $10bbl oil 50c mmcf ....even if only the smallest target of the three is commercial 50c min IMHO if all three successive $2+ etc ..if all 3 dusters ...OXX will still have decent cash balance + permits 8-10c ....great risk reward IMHO

 

[urgalzmine]

Yo BESBS,

where you been? I couldnt help myself and took profits today.

I know you want to wait for the Santos drill, but thats is late first quarter now... I am impatient !

 

[BESBS Player]

Hi Urga,

Been away for a couple of weeks and only just back.

I'm still holding OXX. I'm watching it closely as the drill bit spins but I'm hoping that we might see some new focus on the Winchester drill now that the NZO deal with Matuku has been done (and an extra $12.5m cash in the OXX coffers). This is for late 2013 but should get attention here and across in Kiwiland.

I'd love to see 20c+ in the next ten days. Happy to see at this point.



Holding OXX at 13.5c ave

 

[urgalzmine]

Hi Urga,

Been away for a couple of weeks and only just back.

I'm still holding OXX. I'm watching it closely as the drill bit spins but I'm hoping that we might see some new focus on the Winchester drill now that the NZO deal with Matuku has been done (and an extra $12.5m cash in the OXX coffers). This is for late 2013 but should get attention here and across in Kiwiland.

I'd love to see 20c+ in the next ten days. Happy to see at this point.



Holding OXX at 13.5c ave

Hey Besbs, I know u like oilers,that are about to start drilling have a look at QPN. I'll post stuff there

 

[BESBS Player]

Thanks, Urga.

Still holding OXX.

Management told us that the drill at Palta would take between 2-3 months and started mid-October. It is only small fry (as it is a royalty in the longer term) but now we have Winchester in Q1 (Santos) and then Matuku is confirmed with rig for mid-2013, the drills for 2013 are lining up.
I'll hold for the moment. If Santos can confirm a rig soon, that would give the SP a boost. Watching...


Holding at 13.5c ave

 

[BESBS Player]

Have sold out - finished today - over the past 3 days. The SP appeared to be drifting again so that was my signal to go and get set elsewhere.

There is nothing wrong with OXX. It has cash and good management. Palta-1 offers a decent royalty in the long run and then has Winchester (probably late Q1 next year) and then Matuku mid-year. That said, I am a Buy Early Sell Before Spud (BESBS) or sell at least sell before results, player. Discipline is important and one never goes broke taking a profit. In this market, I am happy with 37% in 4 months.

With a little luck, I might be back before Winchester (depending upon timing and impact of Palta on the SP.

All the best to holders.

Bought (ave) 13.5c
Sold (ave) 18.5c (19.5c, 19c, 18.5c, 18c)
Profit: 35%+ in 4 months

 

[springhill]

OXX still sitting around the 19c level, with 226m shares listed giving it a MC of $43m.

The current cash position of OXX is around $14m, not bad but a fair way from their MC.

There is another $12.5m due to come in from NZO due to a farm in deal reached, see extract from announcement below. This will bring the MC ($43m) and cash position ($26.5m) much closer together. Valuing all OXX projects at no more than $16.5m

Consents received
Ministerial consent has been received for three sale and farmin agreements between New Zealand Oil & Gas and ASX-listed Octanex NL over petroleum exploration permits 51906, 53473 and 52593.
In November last year New Zealand Oil & Gas announced it would pay US$12.5 million for a 12.5 per cent interest in Petroleum Exploration Permit 51906 (Matuku), where the semisubmersible rig Kan Tan IV
is to drill in the coming 2013-24 season.
The other permits in the agreement receiving ministerial consent are PEP 53473 and PEP 52593 where New Zealand Oil & Gas will acquire 50 per cent interests.
In PEP 53473, a survey will obtain seismic 3D data across 600 square kilometres within the permit this year. The permit requires data to be acquired and processed across 250 square kilometres by March next year.

I am not fully across OXX's projects or the percentages of projects they hold, but NZO are willing to pay $12.5m for a 12.5% share of PEP 51906, and 50% interests in PEP's 53473 & 52593.
Add to that OXX's 25% share in permits WA-323-P and WA-363-P in partnership with Santos, with the Winchester-1 well having free carried drilling
On top of this add the potential acquisition of 25% of PEP 5/07-8 EP, subject to conditions.
OXX also holds 100% of the WA-386-P and WA-387-P exploration permits for a 5 year term.

These are just the permits that have been mentioned in the last 3 months, so there may be more to consider.

There are the obvious and severe risks of failures in all of these projects, but once the cash position is boosted by $12.5m, it seems to be OXX will be due for a re-rating.

 

[greggles]

Octanex reporting "encouraging results" from its initial regional reconnaissance exploration activities at its Sefton Project in the Eastern Goldfields of WA.

Additional reconnaissance and infill lag sampling is planned in the next few months. OXX one of the top performers today, currently up 76.9% to 9.2c with an intraday high of 11.5c. Market cap still pretty small at around $12.5 million.