NWE UPDATED

Posted by Tweetypie on Hotcopper in response to the Quarterly Report, 29.01.10 Some TP comments on the Quarterly:- They're drilling TP15, Xanadu & Red Hill this year. NWE is firming up farm-in partners for the entire portfolio and working with Well Construction & Drilling Engineers to plan the drill. This really has the possibility of being a major Company maker imo; I like the interpretation they put on the acquisition of Origin Energy's 49% on EP413, which is pretty much what I thought in that it was outside of Origin's core business and therefore spun off to its lesser partner ie; NWE; Assessments are still continuing on the UK prospects, which are expected to be received by the end of Q1 2010 ie; by the end of March. Again, has massive potential imo. This will be a very interesting year for NWE this year - don't ask me why some are selling, personally I am looking to buy more and am already sitting on a bundle. Posted by Young-Trader on Hotcopper in response to the Quarterly Report, 29.01.10 Key part I gleaned from NWE's qtrly is the farm out for TP/15 is getting a whole lot more serious "With the confirmation of Xanadu and Redhill South being prime drill targets, farm-in negotiations have advanced satisfactorily with interest from both Australian and international players. The addition of the increased interest in EP413 to Norwests exploration portfolio in the Perth Basin has attracted the interest of potential farminees, not just in TP15, but Norwests entire portfolio in the basin."

A really good post I have read on the HotCopper Forums has been from GrayNomad, who has given a lot of thought and expertise in regards to a farm-in agreement (predicted by all).....

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In NWEs ASX announcement dated 18 January 2010 regarding TP15 Update (Perth Basin), Peter Munachen CEO Norwest Energy stated :

Detailed interpretation by Norwest Energy (ASX: NWE) of the airborne FTG (full tensor gradiometry) survey results has confirmed the structural integrity of the Xanadu and Redhill South prospects, supporting the companys preliminary view of October 2009 that these are the prime targets for the 2010 drilling season.

The two targets Xanadu and Redhill South are in an underexplored northern Perth Basin permit, TP/15 (Norwest 100%).

The company plans to drill at least one, and possibly both, of these targets during Q4, 2010 and is now focused on progressing both the drilling and farm-out processes. Importantly, both wells can be drilled from onshore sites using deviated drilling techniques.

To achieve the drilling objectives Norwest is in the process of appointing a well construction/drilling engineering specialist group to assist with sourcing a suitable drilling rig, well design and with planning and permitting.

Interpretation confirms targets
Interpretation of the FTG survey undertaken by Bell Geospace confirms the Xanadu seismic interpretation map. Norwest believes the prospect has a potential 98 million barrels (MMbbl) of oil in place with potential for 27MMbbl of recoverable oil. Additionally, the Redhill South prospect could hold up to 27MMbbl oil in place with potential for 7MMbbl oil recoverable, which would be of a similar size to Jingemia, a nearby onshore producing field.

Now the FTG data over TP/15 has been interpreted and the highly prospective drill targets have been confirmed, farm-in negotiations have gathered pace, Mr Munachen said. We are in advanced discussions with a number of companies, both international and local.


i.e. Now that they have interpreted the FTG results for TP15, they are progressing both the drilling and farm-out processes farm-in negotiations have gathered pace, Mr Munachen said. We are in advanced discussions with a number of companies, both international and local

Ive been a thinkin to keep the punters occupied while we wait for the flurry of announcements over the coming months re: Quarterly Activities Report; TP15 survey results; JV/farm-in partners; Nth Erregulla survey results; appointing a well construction/drilling engineering specialist group to assist with sourcing a suitable drilling rig, well design and with planning and permitting; interpretation of FTG survey of southern Englands Wessex Basin tenements to pass the time, I thought we could speculate on who the JV/farm-in partner could potentially be :-)

After trawling through nearby oilers websites, I think that an AWEsome JV Partner would be

AWE Limited (AWE, formerly Australian Worldwide Exploration Limited), who are engaged in exploration, development and production of oil, gas and condensate in Australia, Argentina and New Zealand. AWE concentrate on exploration and appraisal-type assets, in regions of proven prospectivity and where there is a high chance of commercial success.

2008-2009 Highlights

* Strong production performance for the year
* Reported profit of $89 million, despite the tough economic conditions
* Oil and gas reserves rose by 30% to 69 million BOE
* A substantial exploration campaign started, with $175 million to spend in 2009-10
* Company recorded zero LTIs for the year, with no environmental issues
* Balance sheet remains strong, with $356 million cash and no debt
* AWE continues to identify and pursue value accretive acquisitions in our core business to help generate business growth

Source: www.awexp.com.au/irm/content/09annualreport/highlights.html

Chairmans Review 2008-2009

As a result of prudent management, AWE is blessed with a strong balance sheet, cash in reserve and zero debt. We have taken the strategic view that exploration represents our best opportunity to deliver significant growth in shareholder value and have accordingly committed over $175 million to a drilling program over the next 12 months. Concurrently we continue to evaluate merger and acquisition opportunities but we will be primarily driven by our technical assessment of the rocks and the fluids to ensure that only profitable additions to the portfolio are pursued.

Source: www.awexp.com.au/irm/content/09annualreport/chairmansreview.html

So why do I think AWE would make an AWEsome JV Partner?

AWE is a mid-cap oil producer and explorer with producing tenements in the Perth Basin either side of NWEs TP15 (100% owned) near-offshore coastal strip.





AWE have:
* a Market-Cap of $1.477billion
* no debt
* a strong balance sheet with $356 million cash reserves
* 8,746,000 boe Total Production for 2009
* already established infrastructure and producing wells (oil and gas) both on-shore and off-shore near TP15 targets
* current JV involvement with NWE in EP413 and L14
* recently indicated they are looking for merger/acquisition opportunities
* a strategic view that exploration represents their best opportunity to deliver significant growth in shareholder value.
* Indicated that they are going to spend $175 million on exploration in 2009-10. (NWEs market cap is $17 million).





AWE have 69 mboe oil and gas reserves. NWE potentially has 115 mboe recoverable oil reserves (yet to be proven).
Oil production in the nearby Cliff Head field peaked at 12,000 boepd and is currently 3,500 - 4,200 boepd. They are currently planning workover operations to try and improve production. NWEs nearby, potentially new fields must be a tempting proposition.

I think a JV/merger/take-over (friendly or hostile) by AWE would be AWEsome and help unlock value for NWE shareholders.

What do you think?

As always DYOR and good luck to current and future NWE holders!

Cheers,

GrayNomad :-)

NWE

This was posted on www.hotcopper.com.au on 12 December 2009 by TheDhon, who received 100+ positive ratings for this post alone. NWE is officially on my radars now..........

NWE is the biggest bargain on the ASX and is extremely under-priced at present. I was on KAR, MEO, BUY and BCC but i must admit none of those multi-baggers excited me as much as this stock.

The company has been around for over 10 years and pre-GFC was trading at over 30c. It is currently trading at around 3.5c and i believe the company is in much better shape now than it was before.

Here's why:

a) EXCELLENT MANAGEMENT:

The recently appointed chairman, Michael Fry is a real Gem.
He also happens to be the Chairman of Redfork Energy (RFE). I'm sure everyone knows about the magnificent run of RFE over the last 12-18 months. Michael has increased RFE's market capital by 500%. This guy is connected.

b) ONGOING INCOME STREAM - PRODUCTION/ROYALTIES:

---1) Vulcan/Puffin: 

NWE has a 1.25% overriding royalty which up until production was halted by AED and its partners was netting NWE around $2.2m. This income stream has recently been confirmed to re-commence.

The immediate NPV of Puffin is approximately $15 million
based on over 20Mbls of oil reserves (p50).

As young-trader has mentioned, this alone equates to a share price of 2.9 to 3c! (current price)


---2) Jingemia, Onshore Perth Basin:

NWE has a 1.278% working interest. This deal, although not large, provides the company with another income stream which has thus far netted in excess of $3million. 


c) MASSIVE, HIGH IMPACT DRILLING PROJECTS THAT WILL SIGNIFICANTLY RE-RATE THE COMPANY:


---1) The game-breaker (TP15) - Perth Basin(100% interest).

Comprises the potentially massive Xanadu project. Once the general investment community become aware of this, i honestly believe that NWE will rapidly test its previous high's (10c minimum upto 30c)-important to remember that 
there was a massive discovery nearby (ROC's Cliffhead Oil Field), improving the prospectivity of the area.

Let there be no doubt that this is a potential Company maker and has been compared with BUY's PEP11 (the share price of which went from 3c to 17c in anticipation of drilling and news of farm-out - and its important to note that BUY only has a 15% free carried interest at PEP 11 while NWE has 100% interest in TP15!)

We are eagerly waiting for survey updates, farm out news etc. 

From the quarterly activities report:

"Norwest now holds 100% interest in the TP-15 licence having acquired an additional 90% interest earlier this year from ROC Oil (WA) Pty Limited (ROC) and ARC Energy Limited (ARC) and it is already discussing farm-in opportunities with a number of parties. It is also important to note that the TP/15 permit has a number of significant leads and prospects and is located in a region with producing oil and gas fields including the Cliff Head oil field to the west (seaward ) and the Jingemia, Hovea and Dongara onshore producing fields to the east. The TP/15 License will be the key focus area for Norwest over the next 12 months. The Xanadu West prospect is currently the prime target within TP-15 with potential volumes - P50 at, 90 million barrels of oil in place based on mapping and available data.

The company plans to drill at least one, and possibly both, of these targets during 2010 and is now focusing on progressing both the drilling and farm-out processes. Importantly, both wells can be drilled from onshore sites using deviated drilling techniques.
Following the preliminary review of the FTG survey, Norwest now has enough information to confidently work on identifying and securing a suitable drill rig, and to begin the planning and permitting processes for drilling either, or both prospects in Q4/2010. In parallel, the company will further evaluate data from the FTG survey in conjunction with other data in order to mitigate risk and determine the optimum drill sites.
TP/15, whilst situated in a working petroleum basin, has been underexplored and through the use of the low-cost, high-technology FTG, Norwest has unlocked the potential of TP/15.


Xanadu has a potential of 98MMbbl oil in place and 27MMbbl recoverable. The prime targets are the High Cliff Sandstones and Wagina Sandstones, which are the producing reservoirs for several fields in the northern Perth Basin, including the 60MMbbl oil in place, Cliff Head project, 10km north-west of Xanadu.
Norwest is in ongoing farm-out discussions with several potential partners and now with the FTG results to hand, it is expected that these negotiations will gather pace."


---2) THE UNITED KINGDOM (Onshore southern England)

- Permit 238, Dorset (NWE 50% interest & Operator) comprises over 200 sq. kms right next door to BP's giant Wytch Farm oil field which has total est. reserves of 500mbls of oil (current worth = approx $35Billion!). 

The Seismic Surveys are currently being interpreted and additional geological information is also being purchased - these results should be released any time now and again, could re-rate the company massively.

- Permit 239, Isle of Wight (NWE 75% interest & Operator) again, Seismic & GGI Surveys have been completed and are currently being interpreted - these results should also be out any time now.


d) DIVERSITY OF PROJECTS - many feathers in their cap.


---1) EP/368 & EP/426 - North Erregulla, Perth Basin (20% interest in each). 

Oil targets of 30Mbls of oil! Seismic surveys will be undertaken once approvals are received for an equity swap of JV partner-also presumably this year.


In conclusion, NWE is an extremely under-priced company which has a multitude of high impact projects which will no doubt capture the attention of investors in the not to distant future. Add to this a gun management team and a regular income stream at no cost to them and you have the ingredients of a high quality investment.

IMO the most enticing part is that all of NWEs projects mentioned above (Puffin notwithstanding) are currently valued at zero (Puffin royalty alone at present is worth a share price of 3c). How's that for upside?

With so many company-making projects and so much news on the way, it bemuses me when shareholders panic and question such an investment because the stock price is at rock bottom.

I have a decent holding in NWE and my investment strategy is to sell a portion of my holdings between 6-8c to enable me to free carry the remaining parcel - which i will hold to the commencement of Xanadu and Dorset drilling.


Please do your own research and don't base your investment decisions on anything contained within my post.

NASDAQ PRIMA RUMOUR

Posted by me on www.hotcopper.com.au on 8 December 2009:

Hi PRR fans Just wanted to outlay my thoughts at the moment.. and OK I'll comment on the NASDAQ listing rumour (even though maybe it's not appropriate)

1. ( edited out )

2. What is Prima Cash position atm!? Well, let me tell you..... I'm not telling any of yous for daytrader sake. I'm telling you to enlighten you as to a long term position on this company as a major growth "theory.'" As per the US investor Presentation released today, Prima has approx $14 Million Australian Dineros (?)..... Prima has to come up with a solution bcoz they need cash in order to conduct PhIIb (US) and phIII (US) trials. They also need to AT THE SAME TIME, conduct PHIII European trials. They furthermore need to begin EARLY commericalisation in AUS/NZ. There are numerous solutions..... Which are:

3. Partner up with a venture with a major pharmaceutical company. I have read in numerous articles that pharacutical companies are looking to the future for big drugs, especially that of vaccines (such as Prima's) that prove themselves in trials. Vaccines are relevitvely new, so trial outcomes are important especially wen it comes to cancer (which has plagued the human race since the dawn of time (possibly)). The fact is, that can u tell me wat DOESN"T CAUSE cancer these days?? microwaves ovens cause cancer, tvs cause cancer, THE SUN causes cancer, electricity causes cancers and even eating certain types of foods cause cancer (so I've been told)...... Of the 21th Century, wat is going to be the most epic medical discovery do you think? cancer elimination (IMO) Pharmacutical firms will be ALL OVER Prima once they find out what their vaccine can actually do for women! They need trial results first on a larger study first tho..

4. They could do mOre and more SPP's.. (possible) however if they do, u would expect that they bring everything to commericalisation on their own, wouldn't u ?

5. A listing in the US. Do you think a float on the NASDAQ @ 60m shares at a buck would improve Prima's position? AND IF A BIG PHARMACEUTICAL company did want to takeover PRIMA, they would have to bargain and argue with our millions of US dollars (Better bargaining position with money to back us up). A listing in the US would be costly, as there are a tonne of regulation expense, however, who can argue if the money above was raised!? That's less shares than our SPP wasn't it? I'm too lazy to even look, bcoz I kno that PRR.AX will be a huge growth share..... If u take a long term look at the globe, wat do they need to improve? They need to eliminate sicknesses that in 100years we will look back at and say,, "oh, in 2010, we were primitive however, lucky that cancer is under control.'" and also, energy.. we can't rely on oil and gas for too many decades into the future.. They are already coming out with hybrid cars and what not.....power stations, alternative energy.......... Check out the case study of Rosalie Rogers I believe (Think that is her name)..... That is Prima's hybrid car.. although, she is much much more than that (no disrespect what so ever intended). WIth regards to a US listing, there have been numerous rumours that Martin Rogers (CEO) has been talking to numerous brokers regarding this.. or to be more correct, they have been promoting the idea of a US listing with him..... AGAIN this is speculation and rumour. However, how much is rumour and how much is truth can be blurred at times..... interesting isnt' it?

6. This is ALL entirely my own thoughts and please do not take this as post as fact..... but merely as opinion. Do your VERYY own research www.yaniks.blogspot.com