SHG - Sunshine Gas

[dunnit]

Does anyone know about this company?

 

[porkpie324]

sunshine gas is a queensland gas producer, there is an excellent article on shg in the february issue of resource stocks magazine, from reading the article it seems what is holding shg share price is the price of gas in australia only $2.50 per gigajoule, whereas in the us its over $5.00, until that price inceases in australia i think the share price will be under pressure, but who knows at least shg does produce something. porkpie

 

[greggy]

Sunshine Gas will be drilling in the UK next month. Its interest will be 50%. Should the compoany strike oil, the response will be amazing.
As always, do your own research before buying.

 

[greggy]

Does anyone know about this company?

More info on Sunshine Gas is as follows:
I bought some Sunshine Gas (SHG) this afternoon. They have 50% interest in a UK oil play to be drilled in Aug 06. The prospect contains potentially well over 500 million barrels of recoverable oil. The stock has around 22 million cash and is capitalised at 78 million. Tollhurst Noall has a spec buy on it (latest research dated 26/6/06). If they strike oil who knows where it goes. As always, do your own research before buying.

 

[porkpie324]

sunshine gas(SHG), has been on my radar for sometime, hav'nt yet bought them, shg's share price seems to be still in a downward path.During late april early may the share price did rise on very heavy volume,but it was'nt sustained and has made another lower low and looks like another lower high, but the last 2 months trading may be a result of the general decline in resource stocks. shg will remain on my watchlist, i do think though it has possibilities. porkpie

 

[greggy]

I'm likely to buy some more Sunshine Gas today. Great upside should it strike oil in the UK. As mentioned, this drilling will be taking place during the next month They also have another prospect nearby that could well be drilled next year (1.5 billion barrels potentially). Its coal seam intersts once proved up (likely during the next year) have been estimated to be worth up to 50 c per share alone. But as always do your own research before buying/selling.

 

[greggy]

Good turnover in Sunshine Gas (over 1mill. traded) yesterday. Finished up for the day and up this week in a volatile market. The chart is looking good.
Drilling in the UK commencing Aug 06, potential target is 650 mill. barrels of oil. As always, do your own research before buying/selling.

 

[toc_bat]

SHG - Sunshine Gas. Any thoughts?

Hi All

This is my first post. i am wondering what people think of SHG.

I am pretty new to the share market so am just wondering what others think to test my own hypothesis.

Bye

J

 

[Sean K]

Looks on the up at the moment.

Less than a million bucks in the bank worrying for an explorer! Must be going to the market for cash soon, and more dilution.

MD looks like a bit of a character. Don't trust guys with mustaches though....

It's got some big insto shareholders which is a good sign. I think.

Just 3 projects.......

Maybe BPT has more upside potential. (of course I own that, so don't listen to me there)

 

[NettAssets]

Less than a million bucks in the bank worrying for an explorer! Must be going to the market for cash soon, and more dilution.

They Must have a hell of a cash burn rate
this is

The stock has around 22 million cash and is capitalised at 78 million

 

[greggy]

Looks on the up at the moment.

Less than a million bucks in the bank worrying for an explorer! Must be going to the market for cash soon, and more dilution.

MD looks like a bit of a character. Don't trust guys with mustaches though....

It's got some big insto shareholders which is a good sign. I think.

Just 3 projects.......

Maybe BPT has more upside potential. (of course I own that, so don't listen to me there)

Sunshine Gas has over $21 million cash as at 30 June 2006. This information was released to the ASX on 26 July 2006 in the company's June 2006 Quarterly Report. This company has indeed plenty of cash to play with and does not need to seek further capital for quite a while.
Also, I would like to mention that its major shareholder, Saad Investments has during the past month increased its interest to over 23% (see today's ASX announcement). This is hardly negative news.
On 2 August 2006 ,Sunshine Gas Limited announced to the ASX that the Wellington 1 well in the UK Continental Shelf (PL 1368, West of Shetlands) is now expected to spud around the 13 August 2006. Sunshine Gas has a 50% interest in this well.
Based on the Operator’s mapping and probabilistic reserve assessment of the
Rona Sandstone target (Hurricane Exploration plc 28 July 06), the Wellington
structure could potentially contain up to 214 million barrels of recoverable oil
(mean case), and in a high-side success case (P10) could contain as much as
460 million barrels of recoverable oil.
There is potentially huge upside should the well strike it lucky. Turnover has started to increase during the past weeks along with the share price. I have bought a good holding recently and have been unable to find another stock with so much potential upside. But as always, do your own research before buying/selling.

 

[Sean K]

Guys,

Sorry for the potential misinformation of the cash held by SHG. I got my information off my broker HSBC who use Aegis as their research house. The info off their website today stated:

Price (as at 04-Aug-06) $0.50
Market Cap $95.8M
Cash (as at 31-Mar-06) $0.7M
Cash / Share $0.00
Shares Traded (pa) $21.1M

So, yes, it's old info. Many appologies.

I have since had a look at their last ann it does indeed say they have $21m in the bank.

I'll try to get two sources of info before jawing off in the future.

Cheers,
Kennas

PS, I still reckon BPT is a better option!

 

[doctorj]

I'm keeping my eye on this one.

Bare in mind that offshore oil is notoriously expensive to find and get to market. They've ear marked $9.4M of their $21M cash for exploration this quarter.

I don't know the history of it, but provided they have some success with this drill, I'd expect them to look to farm down on favourable terms.

It will take them a year or more of drilling to get a field with p10 reserves at 650MMBO and have it developed. Lets say they farm down to 30%, $5 in ground value for deep offshore oil and get 350MMBO recoverable, its worth about 230cps (650MMBO=420cps, no farm out 650MMBO=700cps).

It's a risky business. If someone could tell me how they've identified the drilling targets, what work they've done on the blocks and what structures they're hoping to find down there, please reply. I've not been able to find all the much information on the target - which I think is a product of the amount of work they've done, but I could be wrong.

I get the impression the drill is somewhat akin to a blind folded drunk guy being spun around 30 times and asked to hit a 5c piece from 60m with a sawn of shotty. Even if he knows where to aim, he'll be lucky to hit it. I could be wrong, is there more information that I'm missing?

 

[greggy]

Guys,

Sorry for the potential misinformation of the cash held by SHG. I got my information off my broker HSBC who use Aegis as their research house. The info off their website today stated:

Price (as at 04-Aug-06) $0.50
Market Cap $95.8M
Cash (as at 31-Mar-06) $0.7M
Cash / Share $0.00
Shares Traded (pa) $21.1M

So, yes, it's old info. Many appologies.

I have since had a look at their last ann it does indeed say they have $21m in the bank.



I'll try to get two sources of info before jawing off in the future.

Cheers,
Kennas

PS, I still reckon BPT is a better option!

Hi Kennas,

Thats ok mate. We all make errors from time to time. Whilst I like BPT, I still feel there is much more upside in the short term at least with Sunshine Gas (SHG). With over $21 million in cash and the upcoming drilling (mid August) of the Wellington Prospect in the UK, SHG shareholders, that includes myself, have a very exciting time coming up. As mentioned previously, always do your own research before buying/selling.

 

[greggy]

I'm keeping my eye on this one.

Bare in mind that offshore oil is notoriously expensive to find and get to market. They've ear marked $9.4M of their $21M cash for exploration this quarter.

I don't know the history of it, but provided they have some success with this drill, I'd expect them to look to farm down on favourable terms.

It will take them a year or more of drilling to get a field with p10 reserves at 650MMBO and have it developed. Lets say they farm down to 30%, $5 in ground value for deep offshore oil and get 350MMBO recoverable, its worth about 230cps (650MMBO=420cps, no farm out 650MMBO=700cps).

It's a risky business. If someone could tell me how they've identified the drilling targets, what work they've done on the blocks and what structures they're hoping to find down there, please reply. I've not been able to find all the much information on the target - which I think is a product of the amount of work they've done, but I could be wrong.

I get the impression the drill is somewhat akin to a blind folded drunk guy being spun around 30 times and asked to hit a 5c piece from 60m with a sawn of shotty. Even if he knows where to aim, he'll be lucky to hit it. I could be wrong, is there more information that I'm missing?

Hi Doctorj,

Oil exploration by its very nature is very risky, but the potential rewards can be massive. Should they strike it lucky at the Wellington Prospect, Sunshine Gas could potentially go up at least five fold in price. What attracted myself to SHG was the company's enormous potential. I should also mention that the company, besides its UK interests, has significant gas interests in Queensland. I also notice that its major shareholder, Saad Investments, has recently increased its shareholding in SHG once again to over 23% which, to me, is another bullish sign. The share price has also been trending upwards of late.
In relation to your request for extra information, I hope the following information is of assistance to you.
The following information was released by Sunshine Gas to the ASX on 2 August 2006. I've edited it a little due to its sheer size.
ASX/Media Release
1
2 August 2006
WELLINGTON 1 SPUD UPDATE
Sunshine Gas Limited advises that the Wellington 1 well in the UK Continental
Shelf (PL 1368, West of Shetlands) is now expected to spud around the 13th
August.
The spud date for the well has been moved back from that previously
announced due to operational considerations on the preceding well (operated
by another party).
Wellington 1 Information
Wellington 1 is a three-way dip, fault-bounded closure targeting the Jurassic
aged Rona Sandstone at a location 65 km south-west of the giant Clair Field
(currently producing at approximately 23,000 bopd) and 45 km south east of
the Foinaven Field (currently producing at approximately 58,000 bopd).
The nearest onshore oil facilities are located in the Shetland Islands at Sullom
Voe some 140 km to the east.
Wellington 1 is to be drilled using the Bredford Dolphin semi-submersible
drilling rig, in approximately 148 metres of water.
As the location is situated on a prominent geological feature (the Rona Ridge),
the primary target depth is expected to be relatively shallow (approximately
1,005m RT).
The operation from rig mobilisation to the planned plugging and abandonment
of the well is estimated to take about 18 days (including some contingency).
The Wellington 1 location is mapped to be at the Jurassic structural crest on
the regionally significant Rona Ridge and in a location where it is predicted that
good quality near-shore, marine-reservoir rocks will be encountered.
The principal source rocks considered to have provided hydrocarbon charge to
Wellington is the world class Kimmeridge Clay Formation.
ASX/Media Release
2
The quality of this unit as a source is evidenced by the substantial discoveries
and production that has occurred in the North Sea to date.
Sunshine believes that the Wellington location is well placed to receive
hydrocarbon charge from mature Kimmeridge Clay Formation from either the
Faroe or Papa Basins to the north east and south respectively.
The primary reservoir target is the Jurassic aged Rona reservoir section, which
has been intersected in several wells in the area.
It is expected to have the potential for excellent reservoir quality at the
Wellington location, given its interpreted near shore marine depositional facies
across the Wellington area.
The Triassic Otterbank Sandstone, which has been demonstrated to contain an
oil accumulation within Sunshine’s permit at the Strathmore Field (as yet
undeveloped), is a secondary objective of the well.
Based on the Operator’s mapping and probabilistic reserve assessment of the
Rona Sandstone target (Hurricane Exploration plc 28 July 06), the Wellington
structure could potentially contain up to 214 million barrels of recoverable oil
(mean case), and in a high-side success case (P10) could contain as much as
460 million barrels of recoverable oil.
For more information contact:
Tony Gilby
Managing Director
07 3221 4400
Or
Richard Owen
Three Plus
07 3503 5700
0412 869937
ASX/Media Release
3
Wellington 1 Details:
Well name : Wellington 1
Permit/Block : PL 1368; 205/24
Location : Latitude: 600 17’ 44.627” North
: Longitude: 030 21’ 36.819” West
Rig : Bredford Dolphin
Water Depth : 128m
Prognosed Total Depth : 1,234m RT
Primary Target : Rona Sandstone (Jurassic)
Secondary Target : Otterbank Sandstone (Triassic)
Current Depth : -
Current Operation : yet to mobilise to location
Participants in PL 1368
Sunshine Oil plc 50%
(a wholly owned subsidiary of Sunshine Gas Limited)
Hurricane Exploration plc 50% (Operator)

As always, do your own research before buying/selling.

 

[Out Too Soon]

Sunshine has gone behind a cloud recently with Wellington coming up dry but this could be a good buying opportunity, there is plenty more exploration to go, plenty of funds in the bank plus the QLD gas operations. Will I or wont I give Sunshine a punt.
I'm still smarting from the last gas investment I made (Sydney Gas ) & I chose that over QGC, (what a blunder)

oh! & Kennas, maybe I should get rid of my moustache. :

 

[greggy]

Sunshine has gone behind a cloud recently with Wellington coming up dry but this could be a good buying opportunity, there is plenty more exploration to go, plenty of funds in the bank plus the QLD gas operations. Will I or wont I give Sunshine a punt.
I'm still smarting from the last gas investment I made (Sydney Gas ) & I chose that over QGC, (what a blunder)

oh! & Kennas, maybe I should get rid of my moustache. :

Hi Out Too Soon,

I've been following SHG and have lost faith in them since the disappointing UK results. SHG has considerable coal seam interests and a significant amount of cash still in the bank. SHG still looks intersting and reasonably valued, but I feel that there are better opportunites out there. I feel that the real show at present is nickel and that it may be better looking for an undervalued nickel stock. I've recently bought STB. As always, do your own research before buying/selling.

 

[Ken]

SHG looking interesting.

brokers reports are positive.

but which isn't

a company isnt going to put a report on their website saying. sell sell sell

 

[Hansel]

Has anyone been following this stock recently? I bought late 2006 and it's been heading north ever since. I've noticed it has similar technical characteristics to Arrow Energy (AOE). Any thoughts?

 

[sharemadder]

10 December 2007​

Sunshine and Sojitz team up on LNG project​

Following completion of a pre-feasibility study, Sunshine Gas Limited (ASX Code: SHG) has signed a Heads of Agreement (HOA) with Sojitz Corporation to jointly develop a mid-scale liquefied natural gas (LNG) plant at Gladstone on Queensland’s central coast.

The proposed 500,000 tonne-a-year plant will be scalable and supplied from Sunshine’s Lacerta Coal Seam Gas (CSG) Project (ATP 795P & 767P SHG 100%) which currently has 3P reserves (Proven, Probable and Possible) of 1,097 petajoules, including 469 PJ in the 2P category and 44PJ in the 1P category.

Lacerta’s 1P and 2P reserve volumes are expected to significantly increase over time as a result of further production programs to be undertaken by Sunshine Gas.

Sunshine Gas and Sojitz are also discussing the possibility of using gas from other CSG fields owned by Sunshine to supply additional feed stock to the project.

Under the HOA, Sojitz will have a 70 percent operating stake in the LNG plant, with Sunshine Gas holding the balance. Sunshine Gas and Sojitz are also contemplating the direct upstream involvement of Sojitz in the Lacerta Project at up to a 20 percent interest level.

Sunshine Gas Managing Director Tony Gilby said work on permitting by consultant RLMS would start immediately while Front End Engineering and Design (FEED) was being scheduled to begin during the first quarter of 2008.

Mr Gilby said the parties aimed to have the project’s bankable feasibility study completed by the end of calendar 2008 and production underway during the first quarter of 2012.

“Sojitz is a major player in the global energy market and has brought together a firstclass international engineering firm, as well as a leading energy marketer (LNG Japan), to deliver the key project elements,” he said.

Mr Gilby said the project had the potential to be of great economic significance to Sunshine Gas by transforming the Company into a major Australian energy supplier and exporter.​

“Apart from the creation of hundreds of construction and permanent jobs, the development of this project would generate significant export income for Australia and open up Queensland’s CSG gas supply market to the benefits of international pricing,” he said.

Mr Gilby said the parties were in the advanced stage of negotiations with the Queensland Government to secure an appropriate site in Gladstone for the LNG plant.

“The plant, designed initially to produce 500,000 tonnes of LNG a year, will be smaller than others that have been publicly proposed to date,” he said.
“However, we think this factor, combined with the calibre of our partner Sojitz Corporation and that of the other participants, will deliver a significant strategic advantage by allowing us to expedite development.”

The decision to proceed with the various aspects of the project is subject to respective board and shareholder approvals of Sunshine Gas and Sojitz Corporation.​