PES - Pure Energy Resources

[grace]

Director buying $300 k worth of shares at market is a very healthy sign indeed. The share price is rebounding nicely after Matthews capital sell of recently.

Primeau was already the largest shareholder before he jumped in for another 240,000 units.

Something in the wind sooner or later i suspect. Just hope they get very busy proving up resources in the interim.

A rather large transaction going through on Friday. Wonder who upped their holding - Arrow or Shell I suspect.

Time to convert those options over too I think. Uptrend on the chart too.

Directors increasing their holdings. One director resigns from PES and remains on AOE board.....keep independant??? Way too many things have happened which all point to one thing........

 

[grace]

Not a bad result at all on Camereron 26. This seems to be up there with Qld Gas on flow rates. Flow rate of 750 mcfd is 0.77TJ/d.

Queensland Permit ATP852P
Cameron Field CSG Certification Campaign
Highlights

• Cameron-26 pilot well completed and extended production testing now underway.

• The well is being production tested at a flow rate of 750 mcf/day with no associated water production. The controlled rate represents a surface drawdown of only 12% and corresponds to a wellhead AOF of over 3 MMSCF/day at current conditions.

• Drilling of the Cameron-27 pilot well has commenced.

• Completed coring and logging operations on the Cameron-2 well.
An accelerated Phase 2 of the Cameron Reserves Certification Campaign is now targeting 2P reserves certification by early 2009, and is well underway, with two rigs currently drilling in the Cameron Field, and two wells completed. The Phase 2 drilling campaign includes four production wells to establish commercial flow rates, and six coreholes to further delineate gas content together with coal quality and distribution over this large permit (1140 km²).

Plenty of reserves certification coming through in 2009 (early, mid on different acreages).

Let's hope she avoids a takeover in the short-term to prove up some 2P!

 

[grace]

Here is Cameron 26 flowing. There is my little bit of pumping of the stock, and that should be 100 characters...

 

[grace]

Here is cameron 26 in ATP852P. See how QGC and Sunshine Gas (also QGC) and now all BG are next door.

Wouldn't it be nice for a bidding war over our little PES to take place. I can only dream a little.....

 

[basilio]

What a shameless little huckster you are Grace !!

Don't tell me we are reduced to selling ourselves to the highest bidder and just hoping someone will have a few coins left in the piggy bank..... (But then QGC was the only light in the tunnel that wasn't a train in the last few months)

 

[grace]

What a shameless little huckster you are Grace !!

Don't tell me we are reduced to selling ourselves to the highest bidder and just hoping someone will have a few coins left in the piggy bank..... (But then QGC was the only light in the tunnel that wasn't a train in the last few months)

I think an Arrow/Shell takeover will happen unfortunately. Would love someone else to give them a run for their money tho'

Have sent in my money to convert all of my options.

Shareholders just love cash in this climate. I took mine quickly on QGC after complaining bitterly at first. PES can and will be taken out sooooo cheaply.

 

[grace]

More good news from the last drill. Contingent resources of 975PJ on ATP852. Prove that up, and just on that small area alone, we have a market cap of $1billion expected.

83mill shares
x $1.45 = $120 million

Interesting future ahead.

http://imagesignal.comsec.com.au/asxdata/20080528/pdf/00846082.pdf

Looking back at this old calculation, $1million per PJ.

Reserves certification
ATP852P = 1241PJ of 3P (initial estimate of 975PJ of 2C)

ATP758P = 800PJ of 2C

This is 2041PJ on only 2 titles (about 5% of holdings).

Expect they might have more gas than QLD Gas one day which sold for what, $5.5 billion (7000 odd PJ from memory).

Now, 2000 odd PJ of 2P should be worth upwards of $1.5billion (and only on 5% of their ground). 3P is quite easy to convert to 2P in relation to coal seam gas.

Market cap 125mill shares (fully diluted) x $1.70
$212 million

Cheap as chips for the hawks circling!

Coversion of o/s options should give some more to kitty. We have enough for 2009 drilling.

I need a gun to shoot the hawks!

 

[grace]

Looking back at this old calculation, $1million per PJ.

Reserves certification
ATP852P = 1241PJ of 3P (initial estimate of 975PJ of 2C)

ATP758P = 800PJ of 2C

This is 2041PJ on only 2 titles (about 5% of holdings).

Expect they might have more gas than QLD Gas one day which sold for what, $5.5 billion (7000 odd PJ from memory).

Now, 2000 odd PJ of 2P should be worth upwards of $1.5billion (and only on 5% of their ground). 3P is quite easy to convert to 2P in relation to coal seam gas.

Market cap 125mill shares (fully diluted) x $1.70
$212 million

Cheap as chips for the hawks circling!

Coversion of o/s options should give some more to kitty. We have enough for 2009 drilling.

I need a gun to shoot the hawks!

It seems I forgot a bit of acreage there...... Here is some of the address at AGM..

In August 2007, the Company was named preferred bidder for application permits ATP’s 889P(A) and 965P(A). Permit ATP889P(A) greatly enhances the Company’s position in the Walloon CSG Play Fairway, proven to be productive for CSG. The Stella block of this permit lies within 3km of both the Coxon Creek and Lacerta CSG fields.

The Group estimates the 2C* Contingent Resource in the above three CSG permits (including application permit ATP889P(A)), all of which constitute approximately 5% of Pure Energy’s total Queensland acreage, to be in excess of 2000PJ.

So my previous total 2041 PJ, plus 2000 PJ on these above.

The Company is currently working on converting this large 3P reserve base into 2P reserves, and an announcement to the market detailing what proportion of this volume has been converted is expected early in the New Year.

Concurrently, we are embarking on a 3P reserve certification campaign on ATP806P and are compiling the relevant information required for certification purposes. This process is expected to occur before years’ end, and possible certification of initial reserves is also expected in early 2009.

There is a really big probability of proving up some 5000 PJ by the end of next year in my opinion.

Think what that would be worth.

PES is of interest to many.....if only Arrow/Shell didn't own close to 30%.

 

[grace]

Take this as gossip from hc if you wish (from someone who went to the agm)..

Mr Terry Primeau and 2 of his 'associates' hold roughly 20% of the issued share capital (I find this interesting because when asked whether PES was going to be taken over Mr Primeau answered by stating the percentage held by him and his associates and then went on to say that he would make sure that PES shareholders got a good deal (or something to that effect). I would of thought he would of answered the question with the old "At this stage the company is not aware of any parties that would be interested in launching a takeover for the company"

One final observation, one shareholder did the maths and made the comment that the company was worth at least $6 a share with 1200 odd PJ of 3P, to which Mr Primeau agreed

Take it as gossip.....but if that is what was said.....then it kind of confirms what we have all been posting on this site.

 

[grace]

Own up now, who has been buying up on this little one of late?

Is it you Abyss after cashing in your QGC shares? You're just trying to win the stock competition now aren't you....

Who is it? I'm really intrigued. Own up now!

I'm tempted to take a few more on myself. Saving my coins up for more pure bliss.

 

[TheAbyss]

Not me Grace. I have been buying between $1.10 and $1.50 so nothing from me lately. Really do like this one though. Cant add anying to what you have already posted other than i agree whole heartedly.

 

[basilio]

Don't know (obviously..) who is punting on PES..

BUT it should only be good for the shareholders. One would think that as the price goes up shareholders won't be tempted to take ridiculous offers for the shares and that some sort of respectable price was put on the table.

Lets hope so. Today doesn't look so good

 

[TheAbyss]

oil going down 9% will cause PES to retreat on low volumes. usually holds up ok and bounces back pretty quick. Buy the dips as they say and today will present another opportunity

 

[grace]

oil going down 9% will cause PES to retreat on low volumes. usually holds up ok and bounces back pretty quick. Buy the dips as they say and today will present another opportunity

Not down today on a bad day.....here is the chart which looks rather encouraging. Hope $2 holds. This one is so illiquid. Haven't topped up yet though.

 

[grace]

Turnover of shares seems to be fairly high these days.

Anyway, with options expiring very soon, Arrow will convert 9 million to shares no doubt.

Here's how it will look

AOE shares 15.85
AOE options 9.0

AOE will hold 24.85 mill PES shares by 31/12/08. That is 19.9% of fully paid on 31/12/08.

Shell holds 15%

35% between them

 

[Dukey]

Hi grace - havn't been around much on ASF lately but PES sure is looking the goods.
Actually its one of the few stocks I can think of looking the goods just now so imagine what sp would have been like by now in a better market!
The recent steep rises in this dodgy climate are very intrigueing
my punts - either ex-QGC punters getting on the next best CSG stock.
OR
- folks getting in on expectations of a quick gain via t/o by AOE or Shell JV.
OR Both!

Either way - more reserves proving up = good!
- V.few sellers/many buyers in this market = good!
+ - Oil won't be dirt cheap forever!

- Number of PES shares I own = not enough!

good luck all holders .... and everyone else... what the heck - it's nearly christmas!
-D

 

[basilio]

Just can't believe this.....Amongst the desert of fried up weeds one of my shares is actually showing green leaves and shoots !!

Go PES

 

[Dukey]

Yes - awesome and getting better basilio...

ATP852p confirmed 2P resources of 394 PJ.

This is a bigger tenement just north of QGC's ATP651P - which they say has 264? 2P reserves.

Plus plenty of other PES tenements to come.

It's all good...(except for just about every other stock I ever looked at!)

Keep your eye on WCL too... could be the next PES and very tightly held. I'll be loking closer at this one in coming weeks/months.
g'juck all - D

 

[grace]

Time to have another look at the chart as she smashes through a previous high to make a new one, and finishes close to it.

I call PES a female because the stock behaves so well.

Looks good for Abyss and the December stock comp!

 

[grace]

When I can, I listen to ABC radio Southern QLD 8.30am Saturday morning, while I read the paper.

Each Saturday they have a financial planner from Toowoomba on to take the questions from the callers.

Often "Ash" from Injune calls and asks about a coal seam gas favourite....many discussions often on linc, carbon energy and so on.

Today, a new caller asked about Pure Energy and the recent rise in share price, to which the financial planner said "I have never heard of them".

This surprised me somewhat, seeing as I know these locals are up with their coal seam gas stocks.

Anyway, as that was the last "Saturday morning for the year", the planner said he would put an answer on Wednesday morning at 6.55am when he does his morning finance section before the 7am news.

Geez I hope he doesn't give it too much of a push......I took some profits this week.