premier have trading and operations update out this week
at the very least will have game plan for crd 2nd appraisal hole
M
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premier have trading and operations update out this week
at the very least will have game plan for crd 2nd appraisal hole
M
Bit of volume through in AUS. Only one way to go now....
yes, biggest 1 day volume for a while - came early in the day and then no more trades
M
09/07/2013 11:35
MINE: PPP: Vietnam Block 121 Exploration Drilling Update
Vietnam Block 121 Exploration Drilling Update
Origin Energy (Song Hong) Pte Limited ("Origin"), the Operator of the Block
121 Production Sharing Contract, offshore Vietnam, have reported that at 0600
hours on 9th July the 121-CV-1X exploration well currently being drilled by
the "Ocean General" drilling rig, was at a measured depth of 2967m BRT (below
rotary table) and was planning to set the 9 5/8" casing.
The 121-CV-1X well has been designed to evaluate the hydrocarbon potential of
the Whale ("CV") prospect, an unconformity and tilted fault trap, targeting
Oligocene clastic reservoirs and is now close to the top of the main
objective section.
The well has a planned total measured depth (TD) of approximately 3771m BRT,
and the Operator will complete evaluation of the objective sequence by
wireline logging after reaching TD. 121-CV-1X well will be plugged and
abandoned after the evaluation has been completed.
The well is being drilled in a water depth of 270m and was spudded on 15th
June.
Participating interests in Block 121 are:
PPPV121 15%
Origin 45% (operator)
Premier Oil 40%
Looks like we will have an answer either way by this time next week they made some good progress in the week
since 28th the average drill rate is 127m per day which to me sounds good.
if it was a much quicker rate of say over 200m per day, then that implies they are drilling through stuff that is soft
since about to set the casing then say allow 48 hours for that, so come Thursday morning they are drilling ahead - smaller drill bit so slower progress - say 100m per day would be good - not to hard and not to soft
end of next week is my stab rather than Tuesday , but heck I will take oil anyday
M
I am struggling with the wording ( complete evaluation-wire line logging- well will be plugged and abandoned) why hold out hope for a strike if they intend to abandon the damn well?????
Snr. Swissboy
I think to agree sizes of present field
it is a "cheap" exploration drill and once finished and they know what's there then it has no further purpose.
plugged and abandoned [after they have finished with the hole] is normal - even if find a squillion barrels of black gold
a production hole is drilled differently - cased all the way down and is a lot more "expensive" to drill
M
This was always going to be just an exploration hole nothing more.they are trying to find what HC are down there, and they are right on top of their target area. An exciting week coming up.
According to premier, they are targeting 100 mmb +. They will also wire log the well to establish what's down there to find out if they have a commercial volume and if the are on target. All these have been signalled all the time.
Cap
after allowing 2 days to set the 9 5/8" casing then should be drilling ahead now.
in the home stretch and it would be great if can determine oil is there before wire logging
M
Thanks for all the comments posters. Is it not the most incredible drilling age we are moving into. Years ago each drill was accompanied with some excitement and speculative play. Now it is as if nothing is happening at all. The upshot of this non interest is that the punters and intended investors will all be caught with their trousers down if oil is found. The other side of the coin is that punters can be happy they took no part if the well is dry.. Still my point stands that it is now a wait and see world there in the past this well would have been at fever pitch by now.
Tis sad digger, but as you say if this puppy comes in and it may very well do, then those sitting on the sidelines will most likely miss out certainly at these prices. A positive find for Premier doesnt raise their SP as much as it will for PPP.
A dry well whilst disappointing is one of just 5 wells for PPP this year where they try to find that elusive producing site.
I think that the potential here is very encouraging, and the next few days will be very interesting to watch.
so JPDA is dead
http://www.asx.com.au/asx/statistics...idsId=01424886
M
Looks like the Timorese govt made it too hard to do business there. No great loss at all
the prospects in Vietnam and he producing tui assets in NZ are a better fit for PPP's profile.
keep this channel open for further developments in the upcoming week.
locked and loaded
Cap
Should get an Announcement any day now the market has completely looked past this drill any sign of commercial hydrocarbons will see this fly. Will be interesting to see what type of downside for the sp if dry.
Block 121 Vietnam targeting 120 mmbls new should be out early next week at the latest I would suggest.
http://hotcopper.com.au/announcement...-PPP740246.pdf
This week is the week
up 1 cent, 10% in oz today
Yes slowlerna seems a bit more interest in Aussie however an Ann could be out any time. Similar trading to 09 when ppp didn't move until oil and gas was found. Any day now
On to the next well good to see the market didn't over react noting still trading well under cash backing
Interesting no note the new partner tailsman has more financial muscle than premier and really does seem to be talking up the red emperor discovery . $95m payment for 55% of block 07/03 certainly adds a few cents a share to ppp. Looks as though we should get a report out this week regarding commencement of drilling in block 07/03
http://talismanenergy.mwnewsroom.com...0d550b0834.pdf
Good quote, still PPP only has 5% which will be something if the discovery is commercial.
be good if silver silago is positive. That will be the next drill after the CRD appraisal well.
will be very interested in OI if only because of the 50% interest.
Ppp are better positioned than most as they truly cashed up just waiting for the right opportunity.
Cap
Some interest here today??
12 cents is a steal in my books will take a gusher for mr market to wake up and remove discount to cash backing let alone a positive EV
Market seems to have responded positively, any ideas what these operational challenges could be???Quote:
Vietnam Block 121Drilling Update
Origin Energy (Song Hong) Pte
Limited (“Origin”), the Operator of the Block 121
Production Sharing Contract, offshore Vietnam, has reported that abandonment of the 121-CV-1X exploration well drilled using the “Ocean General” drilling rig is still on going.
This has taken longer than planned due to operational challenges, and a further update will be provided when the abandonment has been completed.
On release the rig will next move to Vietnam Block 07/03 to drill the CRD-3X appraisal well.
Looks like strength is coming via a new initial substantial holder notice note 2 directors in PPP are behind the companies in question.
Good to see things are still progressing on block 07/03
Note the late notice on the ASX re Tui acquisition today PPP increasing their interest in the next drill by 50%....
Yes interesting to see got to be a good move I recon
Anyone have any further thoughts on this.... Am pretty much locked and loaded with this stock.
Good to see PPP starting to spend some cash but it's only a start - $2-3m of $76m at June balance date. It's not as though PPP went out and actively sought a new prospect, Mitsui clearly wanted out and have sold to the other partners. Caution is to be commended but does it signal a lack of research/expertise in not identifying alternative projects?
Disc: I don't hold PPP these days.
they still get to clip the ticket as they are to handle tui oil sales as part of deal. after initial misgivings on oi drill I believe this is what ppp shareholders have been waiting for. For tom prudence ,a very, very cautious man, to go all out for 50% of oi, says heaps. more to this deal than meets the eye I think.
ps. low hanging fruit picked, and presumably mitsui get out of any de-commision work at end of tui life
I think TUI will chuck along much longer than the conserative estimate give it. To my inquiry about 9 months ago about TUI south west I was told that that area seems to be depleting. Well to me that can only happen if it is seeping into the TUI. Also from the very start Pateke had the same water bottom level that TUI had and it was initially said to be the same well. Later that got changed to it being a separate well. Well maybe and maybe not more likely joined up together somewhere. I await the drilling of OI -1 with interest and if they do find oil at what debt will the oil water be.
So I am very pleased with todays announcement as I do believe there is more life in TUI yet.
Also I would put little value into why Mitsui is selling out. People and companies sell for all sorts of personal reasons and most have nothing to do with the value of the product sold.
Great to see NZO moving back into NZ activities. Under DS we were rushing off to north Africa while at the same time Tag was coming here making the discoveries we should have stayed here and made.
Correcto Snr. Digger,
I am wanting for PPP NZO to buy new East coast relese areas
Well a rather positive Ann I recon
http://hotcopper.com.au/announcement...-PPP761469.pdf
As per link below
http://www.panpacpetroleum.com.au/pr...am/block-0703/
Crd1x 3200 bopd and 8 mmcf gass
Crd2x 2500 bopd and 27 mmcf combined
It does seem as though they are rather excited with both dst and a sidetrack taking place. Still a negative EV after all of this
Sounds positive to me. This current drill CRD-3 is 1.5 kls from the first one CRD-1 and the oil columns are reasonable similar so the field must be extensive so I would say it is very hopeful for commercial development. Guess I should say IMHO as these things are very technical with issues not always made clear to investors . Still looks all good to me.
Yes it certainly sounds like they are trying to determine the extent of the find lets hope this drill will make the jv fast track development
Would be good to get flow rates this week and other information my bet these drills have confirmed the commercial nature of the discovery. Would be good for the jv to come out and provide updated reserve estimates of CRD
Much better flow rates than achieved over previous drills the jv must be happy lets hope the sidetrack proves up further hydrocarbons
http://www.asx.com.au/asxpdf/2013110...vwwdb2hrz8.pdf
Good to see you at least Boysy have interest here. This must end in a positive decision for the FID and soon. The outstanding fear I have here is that China has claimed all of the South Chin Seas right up to the shores of Singapore and Vietnam. Also more than a few scraps with Japan.
If waiting is fun we are here having a ball.
Whats your call here digger? will these bad boys take off? I have had them a while and have enjoyed their special 0.05c dividend, but I am left wondering what will happen with them next? another dividend perhaps?
Digger I think talisman coming on board may be a godsend for ppp. Clearly premier had to focus on other areas while talisman appear to pressing ahead with development of Asian assets at the forefront.
8th November 2013 Vietnam Block 07/03 Appraisal Drilling Update Pan Pacific Petroleum (Vietnam) Pty Ltd has been advised by the Operator of the Block 07/03 Production Sharing Contract that drill stem flow testing (DSTs) of three key Miocene reservoir sands encountered in the CRD-3X appraisal well being drilled by "Ocean General" semi-submersible drilling rig has been completed. The results from the DSTs of these three sandstones reservoirs, which have not previously been flow tested, are summarised below; First test: 4100 barrels of 31.8 deg. API oil per day plus 1.93 million standard cubic feet of gas per day, through a 40/64" choke. Second test: 2750 barrels of 26.4 deg. API oil per day plus 0.75 million standard cubic feet of gas per day, through a 40/64" choke. Third test: 1161 barrels of 17.6 deg. API oil per day plus 0.07 million standard cubic feet of gas per day, through a 32/64" choke. No water was produced in any of the tests. The well is currently being sidetracked to test a structure within the CRD field to the south of CRD-3X to evaluate the potential for additional net pay within the Miocene reservoirs. The appraisal well and side track are designed to resolve resource uncertainties in the C R?ng ?? (CRD) oil and gas/condensate discovery and prove up sufficient recoverable volumes to justify a commercial development. .
Good results for this stock ??
BB:)
Very interesting read page 17 sums up the plans for the area. Detailed briefly below it seems as though talisman are keen to push through development ASAP none of which is built in the current sp.
On block 07/03
• Oil discovery synergy with adjoining blocks
• Discovered oil resource with upside potential
• Appraisal well CRD-3X tested over 8 mboe/d
• Successful sidetrack further confirming resource potential
• Early commercialization and potential infrastructure hub for the area
http://www.talisman-energy.com/uploa...AL_booklet.pdf
Premier did not want to progress the development they simply didn't have the resources with rockhopper on the go. Lets hope with talisman on board they mean business in short term.
Well spotted Boysy locked and loaded cheers....
Thanks boysy-I like the way talisman is cutting costs.
Dont you mean page 13?
ATM we are only looking at 5% 0r 400 barrels a day or 10000 us dollars a day
No water and lots upside in Vietnam
Whilst in nz we have a bigger share of tui and development well for pateke 3 being drilled followed by exploration well with good prospects at oi.
NZO should also gain from this activity
Thanks boysy-I like the way talisman is cutting costs.
Dont you mean page 13?
ATM we are only looking at 5% 0r 400 barrels a day or 10000 us dollars a day net profit
No water and lots upside in Vietnam.?any idea of the total recoverable amount
Whilst in nz we have a bigger share of tui and development well for pateke 3 being drilled followed by exploration well with good prospects at oi.
NZO should also gain from this activity
I actually sold out of ppp back in august but have indirect hold via nzo
the timelines from ppp wore me out and have put the money into a nice new car instead
even if 07/03 in commercial , give it 3 months and sp may be back to where it is now
m
I don't really like the terms of the Oi prospect for PPP.
Have they actually mentioned what the buyback premium for Oi will be if it's successful?
Generally, in oil and gas, a successful exploration well should pay back multiple times for the other failures (1 in 10?).
Now, I don't see PPP getting reimbursed 10 times for the risk they're taking....
A lot of folk seam have have confidence in OI.
I,m Not sure if it's just a ramp or the fairway looks too good
not to bet on.
BB
[QUOTE=Billy Boy;462202]A lot of folk seam have have confidence in OI.
I,m Not sure if it's just a ramp or the fairway looks too good
not to bet on.
BB-this is an old announcement but one of several reasons why I am optimistic about oi
AWE Announces Additinal Wells In Tui Area Development
Type: Operator Update
Feb. 2013 - AWE Limited, on behalf of the Tui Area Development partners, announced the joint venture approval of two wells to be drilled in the second half of 2013 in permit PMP 38158. Pateke-4H will be an infill development well targeting a mapped northern extension of the Pateke field. The well will be drilled to the proposed measured depth of 22,637 feet with an 8,202-foot horizontal section. It is possible that gross recovery could be increased by 2.3 million barrels. The Oi exploration well will target the Oi prospect which is structurally similar to the Tui, Amokura and Pateke fields. The reservoir is thought to hold prospective resources in the range of 11 million barrels. Firgstad Offshore's Kan Tan IV (mid-water semisub) has been contracted to drill both wells.
It is anticipated that pateke extension development well will produce an additional 1/2 million barrels or so to ppp now that they have increased their share of tui fields.
PPP have 11 au cents in cash per share and with Vietnam and pateke extra production the future should hold a lot of profit and dividends should have imputation credits despite it being an au share.
A success at OI by an off the cuff calculation could be worth a dollar or more a share after awe has bought back part of ppp 50% holding.
Fish you might be a bit exuberant there I remember reading buy back premium of circa 7-8x cost ie well cost $30m buy back premium $220-$240m. 85% of say $200m is $170m or 30 cents a share on a success
boysy I was also factoring in oil production profits from the remaining ppp share of the hoped for 11 million barrels .
It is a big gamble for ppp but they can afford it .
I agree the market is factoring no success would be good to ppp actively promoting what they are doing
My hope is they saved the best until last.
NZOG have good diagrams and explanatory notes for the pateke 4-its a long horizontal drill in shallow but laterally extensive sandstones . resource size is small and I fear it could it already have migrated-but probably hasnt?
I would love to see similar pictures for the 5 times larger potential of OI..
The exact depth of the captive structures is critical and hopefully they will have more accurate seismics this time
Digger what would you put the odds for a commercial find at oi?
Has knowledge and technology advanced sufficiently to improve the odds ?
To be so close to tui-?8k and in a similar structure surely the odds must be good?
#2001
Thanks Fish
BB
Really? If it was that much, I'd be game. Do you have a link to this, or is it speculation? I find it crazy that PPP aren't forthcoming with this number as it's very significant and material commitment they have. Shareholders deserve to know the risks and rewards, right?
I'm thinking they would have negotiated maybe 2 times. That's me being cynical though....
Has anyone else seen this play out in oil and gas before and what an industry average is?
Well this must be good. Looks like they have to wait for horizontal drilling to confirm commercial quantities.
https://www.nzx.com/companies/PPP/announcements/247902
Any oil experts out there? When they started drilling, what sort of % success rate would have been factored in?
It would be nice to see a good ole fashioned oil strike again
The old bubbling crude....
To hell with the NZ economy. This is about for me my economy.
We now just have to wait for the horizontal section. We are certainly not there yet as things could go wrong. As NZO says it could be depleting even if the theory predrill says It won't be. Also a number of other things could go wrong. Who is to say for sure that the resource rock is as good as the rest of the field,and as yet no figure on how deep the oil column is. Early days but I do like PPP point that it is encouraging.
Trading halt on PPP at the moment. Does any one know why?
Drilling update:
https://www.anzsecurities.co.nz/Dire...spx?id=3607213
!!!!! Whatta ya on about moosie. These guys have got heap of hoot, and with the extra coming in
next year will mean more hoot and probably a (an other) cash distrubition.
3 golden rules in real estate. Location Location Location
In equities.... perception, perception, perception,
BB
AWE is still steady so its not cost over runs--sometimes the market does funny things.
I would agree with BB on this one.
No buy depth for PPP on the NZX anymore not a good look tom
Driven by PPP.asx which had a big sell-off yesterday. I don't expect much buyer interest on the nzx until after the asx opens. Whether we see a bounce-back remains to be seen. Methinks the selling has not yet ended.
Of possible interest to PPP holders. I hold AWE but sold PPP some years ago.
"Excerpts From Today's Broker Call
Wednesday, 7 May 2014
AWE - AWE LIMITED
Macquarie rates AWE as Outperform (1) - The good news is the successful Pateke well will now be tied in to help arrest declines at Tui and help offset the large reserve downgrade AWE reported in 2011, the broker notes. The bad news is the higher than expected cost of completion, which will significantly erode the value of Pateke.
Nevertheless, the broker retains Outperform and a $2.50 target.
Target price is $2.50 Current Price is $1.54 Difference: $0.96 If AWE meets the Macquarie target it will return approximately 62% (excluding dividends, fees and charges).
The company's fiscal year ends in June. Macquarie forecasts a full year FY14 dividend of 0.00 cents and EPS of 8.20 cents .
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.78.
Market Sentiment: 0.8
How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 7.5, implying annual growth of 94.6%.Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.Current consensus price target is $ 1.96, suggesting upside of 27.1%(ex-dividends).Current consensus EPS estimate suggests the PER is 20.6.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources."
giday...I admit being totally "out of the loop" re this company but none the less I hold about 50K shares....mainly (historically) because many folk spoke about the NTA being about 16 cents...so what is the go here....either a good time to top up ...or discard ...cheers
ppp about to drill oi well north of Tui....they are so keen they have taken on 50%....if no oil in the well its a lot of moolah down the gurgler...if they strike their estimate of 13 million barrels it looks good....exxxxcept the other partners can take back their levels as they have in tui ...( for a cost)..and ppp is left with 15%......not really a win win for ppp.....no one saying what the buy back cost is but surely ppp would have struck a reasonable deal
PPP very bad SP rating I put down to the Chinese pushing for ownership over all the South Chin Seas, that would include the 5% that PPP has in the Vietnam well. PPP has put time and money into this and we for sure are in no position to do anything about it. China is on the road to be a 100 Hitlers.
have heard rumours were sending 2 herculees equiped with the latest flour bomb technology to protect our interests in the south china seas and china sent 4 destroyers to evacuate their people from vietnam so dont think thats what depressing the sp for ppp....oi could be expensive for ppp if no oil but no real upside if they strike a gusher
Hardly. If PPP strike a gusher it will be very positive for the company in several ways. Firstly if oil is strike and PPP does not leap up then NZO would make a good investment by taking them out at these very low levels. That would give NZO 42% of tui ,oi and the surrounding prospects. In my mind a strike will be very positive for PPP
Anybody have any details as to the buyback details on the up and coming drill. Surely this should be available to shareholders.