SXP - SAPEX Limited

[Santoro]

This stock has jumped out of the blocks today on CSG announcement...this was an IPO a couple of months ago anyone have any comments about it??

 

[gordon2007]

Some news out about coal.

http://www.aspectfinancial.com.au/d...nZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw

 

[macca]

More action today !!

Seems to have bobbed up on someones radar, a trillion BCF with M/cap less than $20m has got us all excited

I hold

 

[moses]

SXP is up 18% to 36c today, and oppies up 50% to 24c. Its got a lovely little chart, and there are only 6 sellers left on the oppies; fingers crossed for a multi-bagger!

 

[AussiePaul72]

SXP seems to be stationary at present around the 35-40c range. I got out at 37c last week and made a nice profit. The SP had started to slide back a bit prior to the MOU announcement. However, i like the look of SXP down the track. Its early days at present. I'd be interested to know what others think of this one at present and what the SP might do in the short to medium term?

 

[Col Lector]

SXP.... 65000km² of Exploration Licences in South Aus prospective for coal/CSG/UCG/CTL and oil/gas.
1.7 billion t initial Jorc inferred sub-bituminous coal resource ann for 2 of the EL's; Target4to 5 billion t for these 2 EL's.
Recently signed an MOU with LNC to target insitu production of power & synthetic diesel from SXP's coal resources using UCG (Undergroundcoal gasification) & CTL (Coal to Liquid).
Potential to supply energy to Olympic Dam & Prominent Hill developments.
These guys are generating a good flow of very positive ann's.
Current market cap about $40mill. 90 mill SXP @ $0.33 & 70 mill SXPO currently $0.24. Options ex at 25c at or before Jan 2012. .
Board promising, with considerable knowledge of SA geology.
SXP holds the entire Arckaringa Basin, whose geology it suggests as a potential geological "repetition" of the CooperBasin.
I do hold....

 

[Col Lector]

ASX RELEASE 9 August 2007
Additional Information - SAPEX boosts Arckaringa coal and
coal-seam-gas estimates
The Directors of SAPEX are pleased to report a significant expansion in the initial
inferred resource estimate for coal deposits and potential coal seam gas content
within the Company’s vast Arckaringa Basin exploration licence areas in South
Australia.
The new inferred coal resource estimate - prepared in accordance with the JORC
code – follows an independent review by consultant group, Geos Mining, of the
pre-JORC drilling data, within a second SAPEX Exploration Licence (EL) 3326
(Weedina).
The first coal resource, in accordance with the JORC code, was announced in
June this year from SAPEX’s EL 3325 (Wintinna East).
The results announced today from the Geos Mining study – based on previous
drilling undertaken - are that EL 3326 (Weedina) contains:-
• One billion tonnes of inferred resources of sub-bituminous coal in 6
seams located in the south-central area of the licence.
• Outside of this inferred resource there is an exploration target of 2
billion tonnes of sub-bituminous coal within the EL area. (The
exploration target has been provided by the consultant, Geos Mining,
and forms part of its report to SAPEX).
A copy of the Geos Mining Statement is attached.
Major Coal Seam Gas potential
“The outcome of the initial study on EL 3326 indicates a potential for some 300
billion cubic feet to 900 billion cubic feet of Coal Seam Gas (CSG), based on a
notional gas content of 300 scf/tonne,” SAPEX’s Managing Director, Mr Andrew
Andrejewskis, said today.
“When combined with the results of the study on EL 3325 (Wintinna East) - which
was reported on 25 June this year - the two EL’s combined have an in-place
potential for CSG of between 507 billion cubic feet to more than 2 trillion cubic
feet,” he said.“This combined CSG estimate only covers the areas of EL 3325 and EL 3326 and
does not include the remainder of the Arckaringa Basin which is held by SAPEX in
seven Petroleum Exploration Licences (PEL) covering 65,000 sq km.“As reported earlier, our interpretation of coal occurrence on seismic data in this
general area indicates a large distribution of coal covering an area of at least
3,500 km which provides ample opportunity for further major CSG resources.”Mr Andrejewskis said SAPEX would conduct exploration activities aimed at
investigating the potential for CSG over the coming several months.
“These activities are separate from the work that will be undertaken by Linc
Energy with respect to Underground Coal Gasification and potential production of
clean diesel under the Memorandum of Understanding (MOU) as announced on
29 July 2007,” he said.
Under the MOU signed by the two companies, Linc will identify suitable locations
within SAPEX’s South Australian licence areas to investigate and then establish
Underground Coal Gasification fields for the production of Low Greenhouse Gas
emissions for Power, and Environmentally friendly Coal to Liquids (CTL) Diesel.
It is the intention of both SAPEX and Linc to then enter into a formal Joint Venture
Agreement to commercialise such suitable resources.​

​

​

 

[Col Lector]

This interview is well worth a listen....expands on the releases of today,and yesterday. Potential for humungous coal resource to tap for CSG;as well as for UCG & CTL

http://www.brr.com.au/event/SXP/2326/26831

 

[Col Lector]

Is the giant awakening.?? Much increased volumes, sp up about 10% with strong close. The initial enthusiasm of investors after the May07 IPO has ebbed post-correction; and also while drilling rigs remain idle as detailed plans are hatched. The LNC JV has the potential to unlock early revenue fom the vast JORC coal resource, and enable funding of extensive drilling of oil/gas & CSG targets.
The apparent geological similarity between the Arckaringa Basin...of which SXP holds almost in entirity in its 80000km² 100%-owned tenements....and the productive Cooper Basin has often been hypothesised. The ultimate question is hanging to be answered.
Which could bring plenty of drill test result adrenalin for shareholders, and ensure some well-negotiated farmins get things rolling over the next couple of years.
Current Mkt Cap about 19mill at 30c

 

[Col Lector]

The five-day perspective ....
Will be interesting to see if current pickup in activity will be sustained. A SXP progress report would be useful here.
However at current prices mkt cap <20 mill, and that includes almost 10 mill cash in bank....& 100% of 80000km² PEL's......bargain-hunters??

 

[Col Lector]

SXP consolidated its gains of yesterday. Had a bit of a mid-afternoon malaise, but a strong finish up 15% with good vol, which augurs well for ron. This sp gain should be placed in perspective...the current SXP sp at 34c (mkt cap~25mill) is still substantially below the pre-correction levels of around 43c...& I don't think they have been idle.....

 

[Col Lector]

SXP is sitting on several billion tonnes of coal and has entered a MOU with Linc Energy to harness this coal resource to produce synthetic gas (UCG) & liquids ( CTL ...coal to liquids ie, a diesel from coal).
The enormous potential for such synthetic fuels from coal becomes fairly stark on reading the article below.

US air force eyes alternative fuel
SMH October 27, 2007 - 5:49PM

The world's most powerful air force is seeking to wean itself from foreign oil and nearly wipe out its carbon dioxide output as part of a sweeping alternative energy drive, a senior Pentagon official said.

By early 2011, the US air force aims to make sure its entire fleet of bombers, fighters, transports and other aircraft can use a domestically produced 50-50 blend of synthetic and petroleum-based fuel.

William Anderson, an assistant air force secretary, said the goal was to reduce energy demand, look for cleaner power sources and to reuse captured carbon commercially, for instance to enhance the growth of biofuels or improve oil well production.

"We can get ourselves very close to a zero carbon footprint," said Anderson ahead of talks on the issue with counterparts in Britain and France next month.

"Not today. Not tomorrow. But maybe a decade or so down the road," he told a briefing at the State Department's Foreign Press Centre.

Anderson said the air force's economic clout as a purchaser could help promote sources of power that do not add to emissions of greenhouse gases. Such gases trap heat in the atmosphere.

The largest US solar-electric power array of 14.2 megawatts is to open in December at Nellis Air force Base in Las Vegas, and Anderson said Congress had asked the service to consider if its bases are appropriate sites for small nuclear facilities.

Anderson said the effort on synthetic jet fuel had been spurred by the 2006 challenge to the nation from President George W Bush to wean itself from its "addiction" to imported oil. Oil supplies are diminishing, Anderson said.

On Monday, a C-17 Globemaster cargo aircraft, workhorse of the US-led wars in Iraq and Afghanistan and the military's biggest user of jet fuel, flew for the first time with a coal-derived synthetic blend as the only fuel on board.

Anderson said jet fuel from coal produced 1.8 times more carbon dioxide between production and consumption as jet fuel from oil, but he said most of that additional amount could be captured during production of the synthetic fuel.

Coal was abundant in United States and renewable energy sources could not meet growing energy demands. "Coal is going to play big in the future, we believe, based on all projections," said Anderson, assistant secretary for installations, environment and logistics.

US air force global operations require a huge amount of energy. In fiscal 2006, the service consumed almost 2.6 billion gallons of aviation fuel at a cost of more than $US5.7 billion ($A6.3 billion), according to an air force fact sheet.

Jet fuel accounts for 81 per cent of the air force's total $US7 billion ($A7.7 billion) a year in energy spending, said Anderson.

For every $US10 ($A11) jump in the price of a barrel of oil, air force costs rise $US610 million ($A673 million), a sum that eats into modernisation efforts and other programs if not offset by additional funds from Congress, he said.

In France and in Britain, Anderson said he would reach out to industry as well as to sister air forces in the hope of speeding up energy-saving efforts worldwide.

"We believe that we have to find an environmentally friendly way to mine coal and to burn coal," he said. "We believe the technology is very close, and we believe that an organisation with the market size and presence of the United States air force can help move technology forward to make coal a much cleaner and greener alternative across the board."

© 2007 Reuters

 

[grace]

SXP.... 65000km² of Exploration Licences in South Aus prospective for coal/CSG/UCG/CTL and oil/gas.
1.7 billion t initial Jorc inferred sub-bituminous coal resource ann for 2 of the EL's; Target4to 5 billion t for these 2 EL's.
Recently signed an MOU with LNC to target insitu production of power & synthetic diesel from SXP's coal resources using UCG (Undergroundcoal gasification) & CTL (Coal to Liquid).
Potential to supply energy to Olympic Dam & Prominent Hill developments.
These guys are generating a good flow of very positive ann's.
Current market cap about $40mill. 90 mill SXP @ $0.33 & 70 mill SXPO currently $0.24. Options ex at 25c at or before Jan 2012. .
Board promising, with considerable knowledge of SA geology.
SXP holds the entire Arckaringa Basin, whose geology it suggests as a potential geological "repetition" of the CooperBasin.
I do hold....

Col Lector - do you still hold? I do. Trying not to fall asleep waiting for drilling, but it is getting hard not to. Good potential this one. In feb, if and when Linc Energy (LNC) prove up GTL, surely this should get a bit of a kick....just hoping.

 

[AussiePaul72]

Sapex sure have a huge coal resource, huge potential for coal seam gas and also petroleum exploration potential. I bought in soon after the IPO and sold at 37c. Recently i bought in again at 21.5c as i think 2008 could be an exciting year for SPX. In my opinion, with a current MC of under $20 million, it wouldn't take much good news to see this one get a kick along. At around 20c it would appear very good value IMHO, however, DYOR

 

[grace]

Sapex sure have a huge coal resource, huge potential for coal seam gas and also petroleum exploration potential. I bought in soon after the IPO and sold at 37c. Recently i bought in again at 21.5c as i think 2008 could be an exciting year for SPX. In my opinion, with a current MC of under $20 million, it wouldn't take much good news to see this one get a kick along. At around 20c it would appear very good value IMHO, however, DYOR

Agree with you. Seems that all my CSGers are climbing into bed together. SXP has just done a farm out to ESG which I am very pleased about, and LNC have done a farm in with SXP, which I am also pleased about. I own all of these. My only one to not hop into the same bed is QGC - it might turn up sooner or later you never know. Lets hope together they can find that coal seam gas and sell it!
SXP at the very early stage (commence drilling this year), ESG at 1% drilled and well, you probably know the story with QGC (approaching $3 bill cap last time I looked). LNC being the csg to syngas to liquid pilot project due this month. LNC goes well, csg in general would be more lucrative used in liquid fuel than production of electricity!

 

[grace]

Presentation on sapex out today explaining what is in store for this year. Well worth a read. Potential for 10 - 30 TCF gas in Archaringa Basin. How does this compare to PJ's???

There are also some accumulators with a few massive sell orders in too trying to push the price down by the looks of it.

http://aspect.comsec.com.au/asxdata/20080319/pdf/00824672.pdf

Can you let me know if you can't access this from my post as I'm not sure if I am doing it right.

 

[frotman]

Hi Grace,

it works. So, whatever you did, is correct.
I downloaded the presentation.

regards, frotman
(I hold SXP)

 

[grace]

Sapex to launch oil and gas exploration. Like how they suggest power for mines (BHP Olympic Dam expansion if it gets the go ahead will be very very thirsty for energy and very very closeby).

SAPEX TO LAUNCH NEW OIL & GAS EXPLORATION
IN THE ARCKARINGA BASIN​

The most detailed oil and gas exploration activity in some 25 years on South Australia’s Arckaringa Basin is about to begin under a new contract announced today by SAPEX Limited (ASX: SXP).

SAPEX said it had signed a contract with Terrex Seismic to conduct a seismic survey in the Arckaringa Basin, with field work getting under way next month.

It will be the first seismic survey to be conducted in the Basin since early in the 1980s and will total 428 km of 2D seismic.

Approximately half of the seismic work will provide detailed coverage over two areas in the Boorthanna Trough where interpretation has indicated several prospects and leads.

“SAPEX is aiming to drill two exploratory wells before the end of the year, subject to thecompletion of processing and interpretation of the data and the securing of a suitable rig,” he said.

"The second part of the survey is a regional 2D program aimed at the determining the southward extension of the Boorthanna Trough.
“Field operations are expected to commence late in April and take approximately 6 weeks to complete.”Reports of the progress of the oil and gas seismic survey will be made to the market.

Adelaide-based SAPEX holds a 100% interest in the under-explored Arckaringa Basin, with 65,000 sq km under 7 granted PELs.
As well as the new oil and gas exploration activity announced today, the Company, through the recently announced farmin with Eastern Star Gas, will soon be undertaking the first ever coal seam gas (CSG) investigation into South Australia’s vast coal deposits.

SAPEX was recently granted $100,000 by the South Australian Government’s PACE program towards the CSG program in the Arckaringa Basin.
While there has been considerable coal-mining exploration and drilling undertaken in the Basin, no assessment has ever been made of the gas content in the coal and no major CSG investigation has ever been undertaken on SA’s coal deposits.

SAPEX is undertaking a thorough appraisal of the potential of the CSG with the view of supplying clean energy to the significant energy markets emerging in this region of South Australia, viz. to major mineral projects.

In addition, Linc Energy will be undertaking drilling into coal deposits to assess the suitability of the coals for underground coal gasification which, if successful could lead to the production of clean diesel and also be an energy source for power generation.

 

[henry vanderhave]

Hi people,sxp moving along nicely today,options up 25%,almost no sellers huge resources,JV with linc on couple of areas,emerging sleeper,my opinion only,check it out.

 

[farout]

Bought into Sapex today at 46c, moving along very nicely now. Nobody wants to sell their SXP, very tightly held. Very much a sleeping stock, just watch it rise in the next couple of weeks