PES - Pure Energy Resources

[Dukey]

OK - here's another one for all those enjoying the CSM sub-sector of late. Seems to have been overlooked on ASF thus far.....
A small cap - but seems to have potential - and in this field you know what that means..........

Market Cap ~ $16M
25M shares and 12.5M options (PESO)

Some bits condensed off the company website:

"PES established 2004 by experienced industry professionals in Coal Seam Gas(CSG).
ASX listing (shares-PES,options-PESO) - 12/9/2006 after a successful raising of $5,000,000 - oversubscribed.

Corporate goal to become a leading coal seam gas producer in Queensland and the primary coal seam gas producer in Tasmania. The Company has an experienced corporate and technical Board and management team. The Directors are Dr Robert Day (Non-Executive Chairman), Steve Beardsall (Managing Director), Terry Primeau (Non-Executive Director), and Mr Shaun Scott (Non-Executive Director).
The Company has also contractually secured Focal Petroleum Engineering’s technical expertise in Coal Seam Gas development and reserves certification.

Overview of the Assets

The Company has the following Coal Seam Gas (CSG) interests in two main areas:

* Queensland’s Bowen Basin
o A 93% interest in the CSG rights in tenements ATP758P, ATP759P, ATP 806P (granted 17 Novemer 2006) and 100% interest in both the CSG and Conventional Rights in tenement ATP831P (granted 6 November 2006), a total area covering approximately 15,990 km².
o A 93% interest in the CSG Rights in tenement applications ATP756P(A), area covering approximately 2,186 km².

* Tasmania: A 93% interest in the CSG Rights in tenement SEL 32/2003, covering 11,295 km²

The Company believes that these two project areas constitute a balanced portfolio of exploration, appraisal, and quickly developable assets.

On the 12 October 2006 Arrow announced its election to farmin into the CSG rightsof tenement ATP 759P. Under the Farmin Agreement, Arrow has an option to earn up to 50% interest in the CSG rights in the tenement.
On the 7 December 2006 Arrow announced its election to farmin to the CSG rights of tenement ATP 831P "

On the 6 November, the Queensland Government advised the Company it is the preferred bidder for permit ATP852 P. The permit block covers an area of approximately 1050 km² of highly prospective acreage, and has been acquired primarily as a coal seam gas (CSG) exploration permit.
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The permit further expands Pure’s already extensive CSG acreage, and moves it into the Walloon CSG Play Fairway which is proven to be productive and prolific in nearby fields and close to existing infrastructure and markets. Pure will hold 100% interest in both the CSG and conventional rights in this permit.

PES share price jumped from 22c to 38 (!!) between 29/3 and 10/4 - PRIOR to announcement of commencement of drilling in Tassie (.pdf) on April 12.
This Tassie project - now drilling looks very interesting - close to infrastructure and in a well established coalfield with previous evidence of gas (via underground explosion!).
Relationship with AOE through Qld farm-ins seems useful to assist fast-tracking of exploration/devel.

PESO - options were granted with the float (1 for every 2 shares) - exercisable for 30c before 31/12/08. Last price today 17.5c.

PES - Trading around 36c

One to keep an eye on methinks.
Anyone in on this one??

 

[ongchuan]

The SP is now going up i guess? Time for entry?? A lot of buyers queuing up but seller side is less. Share tightly held??


Anyone would have any more information to share bout this company? Esp their financial status and prospect.

 

[Dukey]

Just posted these guys on outstanding breakout thread. have a look there.

bought a few seeing sellers are drying up.... a bit of a gamble but feels good!!!

gotta go....

 

[Dukey]

The SP is now going up i guess? Time for entry?? A lot of buyers queuing up but seller side is less. Share tightly held??

Anyone would have any more information to share bout this company? Esp their financial status and prospect.

Financial status - cash flow report out the other day states just under $4M AUD cash at end of qtr. Which would indicate they've spent around $1M (net) since float Sept 06, which raised $5M.

Prospects should be very good - given new leases in Qld near QGC and other current CSM producers. Recent share price action reflect this I think. Also currently drilling in Tasmania. Should get some results from there later in the quarter apparently.
Almost forgot - they have a close relationship with AOE who own 14% of PES and have some farm-ins in Qld blocks.

I bought the basic shares yesterday - but in hindsight the options might have been a good idea ?? PESO. I might have done that if I wasn't in such a hurry to get out the door yesterday.

- so I think they are a goer BUT as always do your own research yadda yadda yadda. They have already more than doubled in the past month... so who knows. I'm not gonna try and put a valuation on them. I'm just gonna hold for the ride and maybe buy more if the chance arises and I can dig up the cash.

Anyone else in on these guys yet?? or am I still alone

 

[ongchuan]

This guy looks good to me. But currently I dun have any money to go into it. Otherwise i would like to. I am thinking of entering when it was 40 cent two days ago and now it is 50 cent. Damn. Share are tightly held which i think is good for the SP to fly off like a rocket!

 

[chops_a_must]

As you know Dukey I'm watching them closely. Just wish I could afford to buy a parcel of them as all my money is tied up.

You forgot to mention that AOE owns 25% of PES on a fully diluted basis. And seem prepared to fund most of the Queensland developments, so the cash position is not that much of an issue IMO.

Their fields in Queensland look great, and in a sector destined for consolidation, this is an obvious T/O target. The small market cap makes it look like a fun trading share as well.

I hope and I'm sure you'll do well with this one Dukey.

As always DYOR on this one as I'm not full bottle on it yet.

Cheers,
Chops.

 

[Dukey]

As you know Dukey I'm watching them closely. Just wish I could afford to buy a parcel of them as all my money is tied up.
....
You forgot to mention that AOE owns 25% of PES on a fully diluted basis. And seem prepared to fund most of the Queensland developments, so the cash position is not that much of an issue IMO.

As always DYOR on this one as I'm not full bottle on it yet.

Cheers,Chops.

Yeah thanks Chops. Thanks for your research on other CSMers as well. I just love this sector - clean green energy and SP's going like the clappers on a regular basis.
- I added the AOE 14% as an edit as you were posting I think. Didn't realize it was actually 25% fully diluted?? How do you work that figure out? Is it as a result of farm-ins etc.

I'm actually kicking myself I didn't buy the options yesterday!!! They don't exercise until Dec 2008 though!! What happens to options if a T/O offer comes in??

I'm gonna post on the CSM thread about 'what possible hiccups' CSM sector as a whole could face... Something we should consider - especially me seeing I'm almost 70% invested in CSM at the moment!!

 

[Dukey]

For those watching the Coal Seam Methane sector of late...
PES yesterday released their latest 'company presentation' - Check it out for a good outline of their plans and projects in Qld and Tassie.

As one of the small caps in this sector - but with plenty of good 'ground' to drill and working relationship with AOE, there seems to be plenty of room for SP growth as seen with the likes of QGC and AOE in the last year or so.

As always - DYOR and good luck to those who join me..:bier:

 

[Dukey]

Well - mostly posting to myself again but hey why not...

VERY interesting day for PES.
First the announcement after midday that gas desorption testing is underway on their first Tassie CSM hole (Fingal 55B).

Then Trading Halt (!) after close of market...
... can you smell it??? .... I think I smell ...... G g g g g aaasssssssssssss

Of course they could wind up announcing a whole lot of nothing and I'll be eating my own head come monday - but...I'm not betting on that outcome.
This baby is looking better every day and I just wish had someone on ASF to share it with!!! I know chops has been watching but it seems no-one else is 'in'.

to quote the infamous Pink Floyd

'... is there anybody .... out there...'

 

[chops_a_must]

The sell off seemed totally unwarranted today.

You wouldn't have any idea as to why the trading halt was called do you? What's their cash position like?

I didn't think they had a problem with cash... and AOE was farming in and covering all their costs anyway... Maybe AOE is farming into their Tassie assets? That'd be interesting... Perhaps more land? As with all small companies the odds are on a cap raising... but I didn't think that was as much of a problem with this company...

 

[Col Lector]

Dont despair Dukey...you arent alone. Placed my original buy order at 54c....then 61...then 71....then 77...Finally got into PES at 81c...just had to bite the bullet & pay the price. Any SP pullback in shortterm welcomed so can topup.
East Coast CSG producers will have a big future.... In the AFR today ("High Time for Howard to step on the gas" pg75) ABARE is quoted as expecting gas demand on the eastern seaboard to outstrip local supply from 2012-13.
These guys are very well positioned to take advantage.....confirming decent Tassie reserves will put the SP into hyperdrive given the gas demand growth anticipated.
I'm not in AOE, but have BPT (Tipton West partner) and also AJL (well established in providing CSG drilling services & possible Gloucester Basin project)

 

[Dukey]

The announcement today stated that the Tassie wells were being drilled by PES and farm-in partner AOE. Thats something I missed along the way - i thought AOE were only in on Qld tenements??

Anyway AOE also carried the announcement I think - so they are definitely farmed-in to the Tassie deal. How much I dunno??

Cash - march qtly indicated they had about $4M at end of March quarter. Drilling will eat that quickly I guess? Need to check out this Tassie farm-in deal.

But my gut says one thing ... starts with G and ends with ASS.

Col - lovely to see I'm not alone!!!!!!! good luck.

 

[chops_a_must]

"But my gut says one thing ... starts with G and ends with ASS."

If your guts are saying this... maybe you should lay off the baked beans!!! :

 

[Dukey]

Mate - doesn't seem to matter what I eat...it's always there!!!!!!!
Maybe PES & AOE should farm-in to my A.....!!!!!!!!!!! :grinsking
There's probably enough to go round.

 

[Col Lector]

Origin Energy has just announced a 630MW gas-fired Darling Downs power station (near Braemar, west of Dalby) with pipeline adjacent the WalloonCoal Measures. Could be positive for future PES's 100% southern tenement ATP852P (near Spring gully). See Origin's ann 12/6/07

Doubt this the reason for current trading halt however

 

[Dukey]

[FONT=Times New Roman, serif]PES out of the gates again (up 20% so far) after lifting of trading halt and news:[/FONT]​

[FONT=Times New Roman, serif]1. Has taken option to buy the 'Tipton west CSG royalty stream' from COI (Comet Ridge Limited) for $3mill. Tipton west is aoperated by PES close partner Arrow. The royalty stream is estimated to be worth up to $8mill.[/FONT]

[FONT=Times New Roman, serif]2. In additon PES have raised $5.25 Mill at 68c from institutional investors. and plan to raise an extra $2mill via SPP for existing shareholders at 69cents. [/FONT]

[FONT=Times New Roman, serif]Looks like Chops picked it - when he said Cap Raising. [/FONT]
[FONT=Times New Roman, serif]I was too early shouting gas!!!! in Tassie - with any luck - that announcement is still up the sleeve!!![/FONT]
[FONT=Times New Roman, serif]Happy days Col.!!![/FONT]

[FONT=Times New Roman, serif]ASX announcement here[/FONT]
[FONT=Times New Roman, serif]http://www.asx.com.au/asx/statistic...rchByCode&releasedDuringCode=W&issuerCode=PES[/FONT]

 

[Col Lector]

Gidday Dukey, Could be misinterpreting...but I sense you seem relatively pleased with the announcement...!
PES nicely cashed up now.... Tipton West partners (BPT & AOE) seem assured to fastrack & maximise this project...and hence the royalty stream to PES.
The affect of share-purchase scheme@ 0.69 record date June 28 on SP should be interesting. Might be some short-term profit-takers (like those "sophisticated" investors who received placement at 0.68)....however I expect it to work to support the SP over the next fortnight. My thinking is that the majority of holders will be holding to ensure they snare the 0.69 cents shares & in anticipation of the further announcements flagged. Once those selling dry-up & this gets wider publicity I expect others wanting to get aboard will be fighting for a dwinding supply of shares on offer...
A positive scenario which could become a superb one if good Tassie results are announced soon.

 

[chops_a_must]

[FONT=Times New Roman, serif]PES out of the gates again (up 20% so far) after lifting of trading halt and news:[/FONT]​

[FONT=Times New Roman, serif]1. Has taken option to buy the 'Tipton west CSG royalty stream' from COI (Comet Ridge Limited) for $3mill. Tipton west is aoperated by PES close partner Arrow. The royalty stream is estimated to be worth up to $8mill.[/FONT]

[FONT=Times New Roman, serif]2. In additon PES have raised $5.25 Mill at 68c from institutional investors. and plan to raise an extra $2mill via SPP for existing shareholders at 69cents. [/FONT]

[FONT=Times New Roman, serif]Looks like Chops picked it - when he said Cap Raising. [/FONT]
[FONT=Times New Roman, serif]I was too early shouting gas!!!! in Tassie - with any luck - that announcement is still up the sleeve!!![/FONT]
[FONT=Times New Roman, serif]Happy days Col.!!![/FONT]

[FONT=Times New Roman, serif]ASX announcement here[/FONT]
[FONT=Times New Roman, serif]http://www.asx.com.au/asx/statistic...rchByCode&releasedDuringCode=W&issuerCode=PES[/FONT]

If anyone wanted more proof of AOE being in bed with PES, here it is.

What would be really interesting to see, is if AOE increase their stake in PES. If they take up more shares as a "sophisticated investor", and also the full allowance due to the physical shares they have. Any upward change would be very nice.

Still not holding, but would like to be. I wouldn't be able to afford a placement anyway I don't think. Can't see the raising being seen as a negative... PES are positioning themselves in all the right places by the looks.

Cheers,
Chops.

 

[Col Lector]

Gidday Chops....not just in bed-together...but fully at it...and now in public it seems.. Seems likely to be an affectionate...and productive union...I am not so prudish to complain..

 

[Dukey]

[FONT=Times New Roman, serif]2. In additon PES have raised $5.25 Mill at 68c from institutional investors. and plan to raise an extra $2mill via SPP for existing shareholders at 69cents. [/FONT]

How about the timing of the SPP - its wham bam thankyou mam!!!:whip

SPP announced Jun14.
Prospectus released Jun 22.
Offers Opens SAME DAY !! June 22 and closes Jun 26!!
(thats tomorrow!!) - very small 'window of opportunity' for shareholders in my opinion. What a joke!! - barely gives anyone time to mail the forms!!
Anyone would think these guys dont actually want shareholders to take up the offer - is that possible?

Can anyone tell me why they would do it on such a tight schedule - I'm sure many investors will miss out. I know i will cause the timing for me - temporarily in japan is impossible.

--------------------
HOLD the BUS!!! - maybe I have my dates confused between the corporate and shareholder capital raisings.??
can anyone enlighten me?