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Re: TSV - Transerv Energy

Transerv Canadian Unconventional Oil Assets Receive Major Value Boost

Transerv Energy advise that drilling and testing results just released by operators of adjacent acreage have confirmed the value potential in the extensive land holdings held by Transerv’s subsidiary Carnaby Energy Ltd in the heart of the emerging Montney tight oil play in British Columbia, Canada. Transerv holds a 55% interest in Carnaby. Carnaby’s Montney land holdings in the area of interest comprises over 20,000 net acres. Independent assessments have estimated the resource potential of this acreage over 750 mmbbl in‐place, with potential recoverable reserves of 50‐75 mmbbl net to the Transerv Group.

New Montney Well Flow Rates
Information recently released by Crew Resources and Arc Energy include results from five wells which have produced over 300 barrels of oil a day (bopd) each, with one yielding over 900 bopd from the Montney. One of these wells is only two miles from Carnaby’s lands. These results, along with previous independent assessments of the area, confirm the immense commercial potential of Carnaby’s Montney acreage in which Transerv holds a majority stake. Carnaby is currently working to define a number of priority drilling locations as part of its initial Montney drilling program.

Montney Unconventional Oil ‐ Analogous US Plays
The liquids yield and scale of the Montney oil play is similar to the Eagleford and Woodbine (“Eaglebine”) trends in the USA where tight reservoirs have provided substantial oil reserves growth through the application of horizontal well and multistage fracture stimulation technology. There are clear analogies with the USA plays where early exploration was aimed at gas but later moved to gas/condensate and then oil prone rocks. The Montney operators have previously concentrated on the gas, gas/condensate regions and only very recently started to look at the oil prone areas. In the USA, asset values and land prices have escalated rapidly as attention was turned to the liquid rich areas. This phenomenon was recently observed in Canada with the Duvernay trend and the Montney oil play is expected to provide a similar opportunity for the Transerv Group.
 
On 16/9/14 TSV reported that through its Canadian subsidiary Carnaby Energy, it had sold some of its lands in British Columbia ('BC').

The sale of the Montney interests (previously called Tower, Two Rivers and Alces) and their producing assets. was to an un-named Montney focused Canadian Company. The purchase price was C$15 million which TSV will receive half in cash and half in shares in the Purchaser.

Notwithstanding the sale Carnaby remains an active participant in the rapidly emerging and highly prospective Montney Resource Play and has recently acquired an additional 25 sections (~10,500 net acres ) along the same trend from the lands it just sold. It also has an indirect interest via its C$7.5 million worth of shares in the Purchaser.

Hopefully the proceeds will not all be used in Canada and some funds are used in the development of the Warro in the Perth Basin WA.

I HOLD
 
This article was posted on the seekingalpha website. It is bullish about the Montney. And does it disclose the previously un named purchaser of TSV interests in Montney?

Canada's Shale Boom: More To Come In Montney
Sep. 19, 2014 5:22 PM ET

In the world of a constantly changing oil and gas environment, the Montney shale basin is the sleeping giant that holds the key to accelerating Canada's shale oil and gas boom, but the real treasure within this giant is a tight liquids-rich zone (approximately 15-20 miles wide) that has big and small players alike narrowing their focus for the potential of a giant payout.

A pervasive hydrocarbon system in the Western Canada Sedimentary Basin (WCSB) in Alberta and British Columbia, the Montney is estimated to hold 2,200 trillion cubic feet of gas, almost 29 billion barrels of natural gas liquids and over 136 billion barrels of oil. But it is the tight liquids-rich fairway (approximately 15-20 miles wide) that contains high concentrations of both free condensate and natural gas liquids that everyone is pursuing in what may very soon be one of the largest commercially viable plays in the world.

Investors aren't exactly shying away from the challenge, and the overall trend within this large basin is a shift towards liquids-rich areas, which is what the Middle Montney (the middle portion of the Montney resource) is all about.

Initially, companies targeted the Upper Montney, and the entire formation was viewed more as a dry gas play with high productivity and immense gas in place. Through the technological advances that have begun to move up to Canada and a general de-risking of the play, the Middle Montney is proving that there is a very large liquids-rich fairway available, with a potential for incredible returns and economics.

Canadian supermajor Encana (NYSE:ECA) - a Montney shale heavyweight - is focusing its drilling to the east of the formation. Last year, Encana announced it would spend over 25 percent of its capex for 2014 on the Montney, and the liquids-rich plays in the eastern area will get the lion's share of this, with 80-85 new wells planned for this year alone.

There are also a number of growing mid-cap players and one micro-cap honing in on this liquids-rich scene and benefitting from supermajor drilling, including mid-cap NuVista (OTC:NUVSF, NVA.TO) and micro-cap Blackbird Energy (OTC:BKBEF, BBI.V).

Earlier this month, NuVista signed a deal to purchase another 12.5 gross sections of undeveloped land in the Montney's liquids-rich zone, which puts its total at over 220 gross sections, while Blackbird has 117 sections of multi-zone Montney rights - again, with a focus on the liquids-rich zone.

It's a very fast-paced game of follow the leader.

When Encana drilled a well in a previously unproven Middle Montney area and came up with two very economic Middle Montney wells that both had condensate gas ratios of approximately 100 barrels of oil per million feet of gas, Navistar responded by immediately buying up land in the vicinity, driving prices up over $2.9 million per section. Blackbird followed suit, capturing a 36-section land position right between Shell and Encana and next to NuVista, which drilled a well with 2,195 boe/d.

And while there is still land available here, prices are rising fast, which makes the situation interesting for the small player like Blackbird Energy, which finds that its land value alone is higher than its current market cap.

Explorers and producers are surrounding the Middle Montney in a pincer movement, and liquids-rich sweet spots are shaping up to be the key to unlocking this next North American treasure chest. And the end of the day, the amount of shale gas under Montney's surface would be enough to supply Canada's needs for 145 years, making it one of the top basins in the world, outdone only by Qatar.
 
On 2/10/14 TSV as operator of the Warro Joint Venture (WJV) reported that it received approval to proceed with the next phase of drilling at the Warro gas field in Western Australia. This phase will comprise the drilling of Warro-5 and Warro-6, including extended well testing.

This program is being funded by Alcoa of Australia Limited (Alcoa) as part of an existing farm-in arrangement whereby Alcoa can earn up to a 65 percent interest in the gas field through expenditure of up to $AUD 100 million.

The timing for drilling is dependent on the availability of drilling equipment and various Government approvals. As previously announced, the WJV is well advanced in its planning activities and has already lodged the Environmental Plan for the operations. In addition, work on identifying drilling long lead items and a rig procurement process is well advanced. TSV expects to commence drilling operations during the first half of 2015, subject to timely approvals

I HOLD:)
 
On July 6th, 2017, Transerv Energy Limited (TSV) changed its name and ASX code to Whitebark Energy Limited (WBE).
 
Whitebark Energy seeing a little momentum now after yesterday's announcement reporting about hydrocarbons being found in the Xanadu 1, Sparky and Nordegg wells.
 

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