By David Press on
3/8/2012 8:04 AM
Some say change is like a holiday, however given my last 18 months or so, I can comfortably say a good long holiday will bring about just as much change. Having spent 6 months backpacking and skiing the alps of Western and Eastern Europe, then settling back into life in London and a job in one of the worlds largest and most infamous investment banks, I'm now back to sunny old Australia and a very different life/career indeed.
Thankfully my passion for investment hasn't changed in any way, meaning it was only a matter of time until I started sharing my views on this site again. An awful lot has happened in the time I was away, with the companies I follow having their up's and down's, as we have come to expect post the GFC. Highlights include some very strong profits on Maverick Drilling (MAD) which we have held for some time now (although we have now exited), strong performance from Hansen Technologies (HSN) and the continued strong operational performance of the Nick Scali Group...
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By David Press on
3/28/2011 10:18 PM
Nido Petroleum ( NDO-ASX) today announced the approval from the Philippines DOE for their upcoming drilling target, Gindara-1. I've noted Gindara as a possible company making prospect a number of times and I now feel that at current prices, Nido may be offering traders and opportunity for a buy early, sell before spud play, and for longer term speculators, an opportunity for serious share price gains on the back of a successful oil find.
Nido and JV partners, Shell and Kairiki are targeting a possible 1 billion barrels of oil at Gindara, with the drill date around May 2011. Having attained approval for the well, as well as securing the “Atwood Falcon” rig, Nido are finalising the required third party logistics and planning and suggest the rig should arrive on site around mid...
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By David Press on
3/22/2011 4:21 PM
Strike Energy ( STX-ASX) announced late last week that they have increased the company's interest in the Louise gas/condensate field and the Eaglewood JV. Strike have spent US$3.75m on increasing their interest in the Louise fields to 40% (from 30%), increasing net production for Strike to 2MMcfe/day (revenue of approximately $350 000 per month at current prices). The deal also increases the interest in the Eaglewood JV, giving strike a 40% interest in future discoveries.
Having recently sold it's Rayburn and Mesquite assets ( blog here), STX are flush with cash (around $20m before the deal) and are embarking...
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By David Press on
3/3/2011 3:19 PM
 Management of Strike Energy ( STX-ASX) this week announced disappointing results from their promising Steindorf-1 well on the Gulf Coast, USA. As I discussed in a recent blog, having sold the majority of their producing assets in the US, Strike's management and share holders were no doubt excited and hopeful that reserves and cash flow would quickly be replaced by the latest well tested by the joint venture. Unfortunately it is not to be and the disappointment was evident in a sharp drop in the share price back to the high teens. In an attempt to put a positive spin on the disappointing results, management...
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By David Press on
1/19/2011 10:07 PM
Strike Energy ( STX-ASX) announced early this week, the sale of a number of their onshore gas producing assets in the USA for $21.7 USD. This strategic move comes as little surprise to those who paid particular attention to the company's AGM presentation, at which the management team hinted at a change in the company's strategy. Managing director, Simon Ashton, believes the sale now gives Strike Energy a 'war chest' of cash to explore it's high impact US and Australian targets and is a clear indication that STX's management prefer to unlock value than dilute share holders holdings with capital raising into low share prices.
According to Strike's public announcement, the sale of their Rayburn and Mesquite interests has netted the company $21.7m USD and equates to $2.63 USD per Mcfe of 1P reserves. The cash will be used to pay down existing debt ($5.8m USD) and close the remaining open hedging positions. The net result will leave STX with cash of just over $20m on the balance sheet, and exposure to their remaining interests, the recent Louise discovery, Steindorf (to be tested early February) and the suspended Muegge well. Additional to the existing and developing US assets, Strike Energy have large prospective CSG acreage in the Southern Cooper Basin and the FutureGas project, as well as their offshore Baniyas project in the north of WA. At a market capitalisation of around $60m at current share prices, it would appear STX offers investors large potential upside with limited downside risk. ...
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By David Press on
12/29/2010 11:53 PM
Following my update only 5 days ago, Nido Petroleum have announced the abandonment of their Tindalo well in the Philippines, citing water production issues. This comes only days after an announcement stating testing was ongoing and that production fluid was being flowed in order to test flow rates adequately. Unfortunately it seems it wasn't only production fluid that was flowing. Testing showed reducing flow rates and high water-cut reducing oil production.
Following the testing of the well, the JV have determined Tindalo to be uneconomical and have are initiating shut down and abandonment of the well. A decision regarding the use of equipment is yet to be made, bearing in mind the JV exercised their option over the equipment with high...
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By David Press on
12/24/2010 4:25 AM
It's been a while since I wrote an update on the fortunes of Nido Petroleum ( NDO-ASX) in the Philippines, after last discussing their issues at Tindalo. The rough seas (pardon the pun) have continued, with a weather induced shut down of Galoc, further issues at Tindalo, after the much anticipated work over and unfortunately for shareholders, a request for more funds in the way of a capital raising. On the upside, depending on how you look at it, Nido managed to finalise the farm out deal for Gindara that has been touted for many a months now, with Shell Philippines Company (a subsidiary of Royal Dutch Shell).
Nido's crucial cash flow...
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By David Press on
9/15/2010 10:00 PM
Nido Petroleum announced on Monday 13th September that a sidetrack program was now underway at their troubled Tindalo-1 well in the Phillipines. We discussed recent water production issues in this blog and have been awaiting news on developments since.
All things going to plan, news should be forthcoming in around a week regarding Tindalo-1 coming back online and possibly initial flows. I'm sure I'm not the only investor hoping they are taking their time and getting it right this time around, but assuming they do, Nido Petroleum's future cash flows and hopefully shareprice are in for some serious growth.
Recent presentations by the company continue to place great emphasis on their...
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By David Press on
8/10/2010 10:20 PM
 Nido Petroleum (NDO-ASX) and it's joint venture partners of Tindalo-1, a shallow water oil target in the Philippines, have run into water cut issues after initial high flow rates and a swift rise in the shareprice.
Nido recently announced the need to perform a work over on the well with an expected start within 3-4 weeks of joint venture approval. Currently Tindalo-1 is producing at sub-optimal levels due to high levels of water cut and poor water separation and treatment. Nido has been forced to store large volumes of water due to the poor performance of its water treatment equipment (treated water unfit for return to natural environment) resulting in further setbacks.
Performance upgrades for the water treatment equipment will be performed as soon as possible and production levels will be increased to the maximum allowable...
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By David Press on
6/8/2010 5:20 PM
Nido Petroleum today announced successful flow rates from their SC54A Tindalo-1 well, resulting in an appreciation in the shareprice to well over 20c in intraday trade after an end to the companys self imposed trading halt.
The well was flowing at a maximum rate of 18 689 bopd, well above their target of between 7000 and 15 000 bopd. Those rates came without use of any pumping and were restricted by the hardware used, adding more positive sentiment to the productivity of this well over the longer term.
Nido made it quite clear in todays announcement that they intend to use the cash flow to immediately develop other shallow water targets in the area and plan to implement their strategy regarding development of their Gindarra target in SC63. Given the company's public search for a major partner for SC63, and the purchase of over 11% of the company's shares by Morgan Stanley, there are certainly exciting times ahead.
Disclaimer: At the time of publishing, the Author...
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By David Press on
5/26/2010 8:01 PM
Nido Petroleum Ltd (ASX-NDO) a small oil producer with large acreage in the highly prospective Palawan Basin in the Philippines is on the verge of producing results which the company believes will be transformational. Flow results from their Tindalo 1 well are imminent with potential to significantly increase cash flow for the company, but more importantly success at Tindalo will minimise Nido's reliance on a farm out of it's company making Gindarra targets.
Tindalo 1 in Service Contract 54A is targeting between 7000 and 15000 bopd of which NDO holds a 40% interest. Success will potentially triple Nido's production and add significantly to Nido's cash flow which at its current market capitalisation, should put upward pressure on share prices. Recoverable oil is estimated at 5.1mmbbl but risk still remains on the flow rates and how long the well will flow at economic rates. Further to Tindalo 1, Nido has a number of shallow targets in SC54A that may offer further production increases,...
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By David Press on
4/20/2010 8:39 PM
Strike Energy (Asx- STX) have certainly not set the world on fire in recent years regarding share price appreciation but management have continued to quietly go about business and the company appears set for a strong period of growth as they increase their drilling commitments in the US and look to drill CSG targets in South Australia. Strike management believe gas reserves could grow by a multiple of up to 10 times current reserves should they be successful in the US and note that their CSG targets could make the company a serious player in Australia's emerging Coal Seam Gas market.
The share price itself looks cheap considering the company is currently valued at anywhere between $80-100m depending on daily share price movements. A market cap in this range is around 4 times operating cash flow of around $20m and a PER of between 20 and 25. It would appear that the market hasn't added any value for Strike's 2010 US drilling campaign, their Carnarvon Basin program...
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