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PPP - Pan Pacific Petroleum

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TheAbyss

TheAbyss

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Couldnt find a thread for this so here it is. Best volumes in 12 months today. As they get closer to first oil in June the sp will steadily increase.

Dont know much about them if anyone can shed any light. They are sharing with AWE and Mitsui in NZ and close to completing drilling.
 
TheAbyss said:
Couldnt find a thread for this so here it is. Best volumes in 12 months today. As they get closer to first oil in June the sp will steadily increase.

Dont know much about them if anyone can shed any light. They are sharing with AWE and Mitsui in NZ and close to completing drilling.
Click to expand...

Abyss, John Campbell (Oil and Gas weekly) put out an alert on them last night- he holds and has been spruiking them lately.
A few shares are out there at the moment and there will be a sh*tload of them once the options are converted (15c) in June (6-700 million from memory).
Were trading at 20c a while ago so could be worth a punt.
Have been watching the options for a few months but haven't been tempted yet.
Long running rumours of T/O as they have some cash and possibly some exploration upside.
 
Thanks JTB. Shall watch for a while and see what eventuates. I did pick up a few of these in January based on some advice from a friend hence why i have been watching them.

Not looking forward to dilution but it happens to most stocks sooner or later while in growth phases as they have to pay their costs somehow.
 
PPP

Interesting report in Oil & Gas Weekly.....oppies only 4.2c heads 18.5c....strike price for the oppies is 15c...

PPP Has started to breakout into a higher trading zone over the last week or so....certainlz one for the watchlist....I like what I see and have taken a position in the oppies....

Report Reads:

"I refer subscribers to the recent announcements from the Tui Oil field JV partners saying that Tui 2H drilling had to be lenghtened after the oil reserve was found to extend further than orignally mapped on the seismic study. A NZOG spokesperson said that the discovery of a "bigger oil column" was a" positive indicator."

The development budget was increased by 9% to cover the additional cost of drilling a longer than anticipated horizontal. As we suggested in last week's OGW we expect this will lead to a "reserve estimate upgrade" at the end of the currrent drilling program. Currently the 2P reserves are 27.9 million barrels.

We have accordingly been buying Pan Pacific Petroleum for what we see as the best leveraged exposure to this oil field. The operator , Australian Worldwide Exploration, expects to build production up to a peak of 50,000 barrels of oil a day, some 5,000 bopd net to Pan Pacific. The investment pay back looks like being just a few months. We have conservatively estimated a net value to PPP of 14 cents a share based on a net of A$30 barrel (see OGW of 11 March). PPP has a 10% stake in the field. First oil is scheduled for end June.

But in addition to the prospect of significant cash flow from a producing field in just three months time, PPP has 10-14% exposure to two wildcat wells in the same area, one Hector #1 with the potential for more than 100 mmbls recoverable (yes we know it pays to be wary of such estimates!). The other Taranui #1, is a smaller target but closer to the discovery wells. Both will be drilled before production starts at Tui. So any disappoinment from these two wells will be quickly offset by the start up of Tui.

Success at Hector would more than double the size of the Tui field and could be tied back into the production infrastructure. And success will have a significant impact on PPP as it will on the other partners. AWE and NZO.

In addition Pan Pacific has been talked about for some time as a takeover target. Any raider out there would be wise to make their run sooner rather than later.

In short with PPP we have:


(a) Reserve upgrade likely

(b) Two wildcats close to the current discoveries

(c) A T/O target

(a) and (b) before end June

The Company has 433 million shares on issue valueing it at $70 million. It has $10 million in cash and the prospect of another $10 million at the end of June when 157 million options with a 15 cent exercise price are due. The options are already in the money and should be more so as the expiry date nears.

Now we are not making a buy recommendation. We don't have the requisite licence to enable us to do that. We simply want to draw subscribers attention to a stock which we personally are buying as one of the best prospects for short term upside in an otherwise very ordinary oiler market.

For the really adventurous the options are currently trading at around 2.5 cents. This means an investment of $5,000 gives one control over 200,000 PPP shares for a total exposure of 17.5 cents a share. These are some of the best odds we have seen for a long while given the revenues soon to be flowing Pan Pacific's way. So we have been buyng the oppies as well."

Any comments???

EB
 
EB,

Apples for apples have a look @ CVN.
Half the market cap,60% of the price, similiar # of shares, twice the proven reserves with another significant upgrade due in April (across three different structures) & lots of other stuff going on in the near term.
Lot more near term upside imo as the TO rumours re:pPP are the only attraction and I think 25-30c would be succesful.
Me thinks POE would be having a good hard look at CVN also and I think 40 to 50c would be in the ball park.
However Ted (Jacobson, MD) has thrown out a 0.66c figure recently which I found interesting.....................................

A couple of hundred K @ 11-12c is a far safer bet over 3 months (with mullti-bagger potential) than PPPO imo (as thats all I'd be buying) for a quick a punt.
Call me jaded but since buying in recently JC has been pushing this as hard as smelly old Comet Ridge:p:

Either way good luck mate
 
PPP starting to move northwards again. Volumes have been improving recently as they get closer to producing some oil next month.
 
TheAbyss said:
PPP starting to move northwards again. Volumes have been improving recently as they get closer to producing some oil next month.
Click to expand...

Yes its been refreshing to see their options moving again after dropping under the 4c mark, albeit briefly.
 
nice moves of late... hopefully will continue onwards and upwards..

options at a good 1.5 cent discount !!
 
In addition to oil production imminent, the potential reserve upgrade, two wildcats close to the current discoveries, AWE has just been granted 3 additional explorations of which PPP has 10% of one of the 3.

All looking ok which is reflected in their SP. Great volumes recently and the SP is in blue sky and going higher IMO.
 
Got in today at .24.
Chart is textbook.
A break of 28c will mean a ver significant all time high into blue skies and im talking 18 years since 1989 the ASX listing.

Oil&gas sector is on fire.
 
Nice volume today.
Mr.500k at around lunchtime cleaned up all the .24 sellers and got the party started.
Looks to me like the start of the next upleg :cool:
 
Off to a flyer this morning!
But with that much of a gap up, 6-ticks, it'll be hard to close on a white candle.
But there were some decent sized orders in the pre-open this morning, with one buyer for 700k.
 
So why the big jump today? Just it's turn or still going up before oil on line this month? please explain!
 
BUY&SELL said:
So why the big jump today? Just it's turn or still going up before oil on line this month? please explain!
Click to expand...

Look at this squeeze... maybe the techs got into it???? It was a very narrow band and volume was increasing.

It is overbought now I believe and will be hard to hold this level...only my opinion though as I do hold it in the June tipping comp, I hope I am wrong...
 

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Nice close today.
Will need another white candle 2mrw, a close above .28 will take us into blue skies.
 
nizar said:
Nice close today.
Will need another white candle 2mrw, a close above .28 will take us into blue skies.
Click to expand...

Starting to move now guys.
That 9m cross trade will make it look like big volume on the charts, so it was important we had a white candle today or else it would look like a sell off.

The 250k buyer of most of the .27 sells didnt really get her moving.
But looking good now, at 29/29.5
 
Good call earlier this month Nizar. You asked for >.28 and here it is. :)

Any thoughts on where this one could get to based on current potential production and a factor for the known exploration targets?
 

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