All this negative talk about PRC im suprised their shareprice isnt around 50c. Seems to be holding up well
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All this negative talk about PRC im suprised their shareprice isnt around 50c. Seems to be holding up well
Ratkin,
I'm not so negative about PPP - in fact I have a bid sitting at 36c where to me it looks like the sp is experiencing some support. At 50c however I may have been more negative.
Assuming the DOW does not drop again below 10000, and there's not more bad news to be announced by mgmt, I'm guessing PPP will bounce back north well enough. Its prospects still ain't half bad.
Although PPP have so far lucked out in their drilling in Vietnam and Timor regions, they still have a significant amount of cash, & they are closely linked with what NZO are doing. At some stage in the near future there is going to be further drilling in the Tui area, and if oil is struck there it is going to be a major success for both NZO and PPP. Personally I don't know why NZO drilled first at Albacore....it was always going to be a long-shot and the fact that nothing was found there has added to a 'bad news' feel around the company when combined with the PRC situation. Overall there is reason to be positive though; Kupe is a happening thing & those revenues will start to roll in, and no-one is going to abandon PRC now after so much dosh has been invested. It will be a happening thing in due course - probably 2011 - and when it does hit full production NZO will benefit from the revenues inherent in being a 30% stakeholder.
According to the Herald bidders are being sought for Taranaki's onshore Kahili gas field, which was operated for a short time in 2004 by Austral Pacific Energy. Production stopped when the well unexpectedly filled with water, but reserves were estimated at 4 billion cu ft of gas. Crown Minerals said that the field failed due to an aggressive water influx into the small reservoir compartment that was tapped by the production zone, but a well placed further sidetrack could recover more gas condensate. The block offer is closing on May 3.
*******Get in there NZO*******
Disappointing that Kan TAN 1V is still tied up with Rockhopper whilst the tasman has been as flat as a lake
Origin Energy, on behalf of the T/18P Joint Venture, advises that
as at 06:00 hours EDT on Thursday 11 February 2010 the current
operation at Rockhopper 1/ST 1 is pressure testing the BOPs prior
to undertaking a wiper trip and running a wireline dual packer
formation sampler.
The prospective target reservoirs were encountered between 40
and 60m deeper than in Rockhopper 1 as mapped. Consistent
with the results in Rockhopper 1, these sands varied in thickness
between 1m and 9m.
An extensive wireline probe sampling program has been
undertaken and recovered oil from 2 sandstones and formation
water from another. Several other sands did not yield reliable
formation pressure data or samples and may be hydrocarbonbearing,
but of lower permeability. Sampling of these
potentially tighter intervals will now be attempted using the
wireline dual packer formation sampler over the next few days.
It remains too early to speculate on the commercial significance
of the Rockhopper discovery.
kan tan IV is pulling casing before plugging and abandoning, then its off to nz looking for hoki
M
thanks for that summary logen 9 fingers...
lol... i like it...
Its a pity that NZO pulled out of the Romanian ADX connection...
I wouldnt be surprised if NZO make their own moves in the region soon...
as for drilling,
line em up like skittles and NZO will surely hit one of these exploration wells...
havent really had an itch to reinvest until now...
surely its gotta be this one.....
hehehe...
I will have a better look at the prospect and consider it as im not buying ADX no more based on NZO pulling out...
:cool:
.^sc
With drilling for hoki imminent followed by near tui developments wells I wouldnt procrastinate too long .
I am tempted to sell my cue in order to buy more nzo .
I havnt really followed cue too closely-out of cue and nzo which do you think has the best short-term prospects(ie under 3 months )
NZO has the best prospects in the next three months. But that is fairly obvious. They have a drilling campaign about to kick off.
I'd back CUE over the next 12 months though. Why?
Bedding in Maari cash flow
flow testing manaia and m2a
Artimis drilling
Caterina farm out and drilling
Quarterly tomorrow isnt it ? some expecting glad tidings going by the nice wee rise today
Either someone knows something or more likely they wanted 30,000 and paid market price.
True Big Bob, not the Quarterly, 6 months interim to Dec 31st I think
Ahh, indeed Blockhead - forgot about that - I think you're right, in that it is due by the end of February...
nzo up due to short term traders jumpin in for the thrill and drill phase :D
Why on earth does NZO want to purchase PIKE coal at market/spot prices?Quote:
Funding Support for Pike River Coal
24 February 2010
New Zealand Oil & Gas Ltd (NZOG) has moved to enhance its investment in Pike River Coal Ltd (Pike) through a funding package announced today.
NZOG is already the largest shareholder in Pike with 29.5% of the shares on issue.
Unforeseen production delays at its West Coast coking coal mine have required Pike to seek further working capital. Pike is also seeking to redeem its existing US$28.9 million convertible bond facility provided by Liberty Harbor, LLC.
NZOG has agreed to support Pike with the following funding package:
a. Pike will undertake an equity issue to raise NZ$50 million. NZOG will subscribe for its 29.5% interest in a fully underwritten rights issue of NZ$50 million (subject to any regulatory restraints).
b. NZOG will provide a new convertible bond facility for US$28.9 million with an interest rate of 10%, to fund the potential redemption of the Liberty Harbor convertible bonds. NZOG's new bonds will mature in March 2012. They will be convertible into Pike shares at the same conversion price as the Liberty Harbor bonds (NZ$1.24 per share converted at an exchange rate of US$0.70), subject to adjustment under anti-dilution provisions.
c. Pike will grant an option to NZOG, exercisable at any time over the next two years, to enter into an offtake agreement to purchase Pike coking coal at market prices to be negotiated annually. The maximum volumes which may be purchased under the offtake agreement would be the currently uncontracted coal quantities for the first three years and up to 30% of annual coal production for the remaining life of mine.
The bond facility and coal contract option are conditional on, amongst other things, both being approved by Pike shareholders. In the event that the bond facility and coal contract option do not proceed, then a break fee of NZ$1.2 million is payable to NZOG.
Further details of the funding package are set out in the attached schedule.
NZOG has also agreed to provide interim funding to Pike, on commercial terms, of up to NZ$15 million. This may be drawn upon, as necessary, to cover funding requirements until the rights issue proceeds are received.
NZOG Chief Executive David Salisbury says the overall package has benefits for both companies.
"Subject to approval from its shareholders, Pike will have in NZOG a supportive investor providing the funding it needs, allowing Pike to focus on ramping up to full production during this period of very buoyant prices for metallurgical (coking) coal.
"NZOG will receive an attractive return on its secured convertible bond. The potential for NZOG to hold a coal contract will enhance NZOG's overall investment in Pike.
"As we have consistently stated, in due course Pike is likely to be less relevant to NZOG's future as we build our core oil and gas exploration and production business.
"However, this package is value creating for NZOG and is a continuation of our current strategy of managing this investment in the interests of our shareholders.
"At this stage it is appropriate that NZOG continue to provide tangible backing to Pike as it moves to steady-state production from its coking coal mine, while we focus on our extensive programme of petroleum exploration and production activities," David Salisbury said.
Schedule of key terms
Equity Issue
• Pike to undertake an equity issue of ordinary shares to raise $50 million
• Pike is considering a rights issue of ordinary shares and a share placement
• NZOG will subscribe for its 29.5% interest in a rights issue of $NZ50 million
• NZOG's participation in a rights issue is conditional on the rights issue being fully underwritten
Coal Contract Option
• Pike to grant NZOG an option to purchase Pike River coal for life of mine
• Pricing to be negotiated annually on the same basis as the existing Pike contract with Gujarat
• Option exercisable within 2 years
• Coal quantity under option to be up to 30% of Pike River annual production (except for the period to 31 March 2013 when the quantity is limited to the quantity of coal not already contractually committed)
Convertible Bond
• NZOG to provide Pike with a new convertible bond facility allowing Pike to repay existing Liberty Harbor convertible bond facility
• Facility amount is US$28.9 million
• Term is 2 years to 12 March 2012
• Interest rate is 10% pa
• The facility is to be first ranking secured debt ranked equally with other Pike debt of up to NZ$20 million
• The bonds can convert at the option of NZOG into such number of ordinary shares of Pike as is determined under the conversion formulae which at an exchange rate of US$0.70 is NZ$1.24 per share
• Standard anti-dilution applies so that the conversion price reduces if further securities are issued at a reduced price
Conditions of Coal Contract Option and Convertible Bonds
Each of the Coal Contract Option and Convertible Bond are conditional on each other as well as:
• all necessary Pike shareholder approvals under applicable listing rules and the takeovers code being obtained
• successful completion of the rights issue
• any necessary consents and approvals from existing secured creditors of Pike
• in the case of the Convertible Bond, Pike not being in breach of any existing financing arrangements except as permitted by agreement of NZOG
• A break fee of NZ$1.2 million is payable to NZOG if the bond facility and coal contract option do not proceed.
Presumably they see value in holding the contract itself, with a view to flogging it off to someone else?
No idea why they'd want the actual coal.
If/When Pike hits 1 million tonnes, then NZO can convert its bonds to shares. Presumably the resolutions passed at the PRC special meeting in a couple of months will bypass any takeover code provisions and allow NZO to convert bonds to equity without further shareholder authorization.
NZO is protected against dilution by Liberty Harbor, and PRC gets a bondholder who is likely to be less voracious than Liberty Harbor. NZO don't seem to have any urgent need for major cash at this stage, and they must have as good an idea as anyone if the coal is going to come out.
IMO itis a means to an end in that it is part of requirements to help the underwritting of the the nz$50m issue.
Also, it finds a use for some of those usd$ held - which has missed out on being converted to nz$ last year before usd$ dived.
Would be very surprised if NZO actually exercised the option themselves - perhaps they may flog it off next year if there was any money in it, otherwise let it run its course and lapse.
M
Pike shareholders should breathe a little easier now. The deal is good for both companies, but NZOG have secured the coking coal contract which perhaps they could have negotiated when the Indian shareholders negotiated such a deal i.e. prior to PRC's listing on the NZX.
In my view the price reset of the coking contracts should follow international best practice, which appears to be rapidly moving towards a quarterly reset. Today's announcement does not indicate whether it is possible or likely to move away from annual price reset of the coking price contract that the Indian and Japanese parties contracted to buy the coal (e.g. Gujarat, Mitsui... ) currently enjoy.
NZO appear to have secured the coking coal with pricing reset annually until 2013. Beyond that period, the pricing reset mechanism, and the frequency of this reset, need to be clarified.
On first brush I am comfortable with these arrangements, slipping PRC sp suggests holders there are not so happy, perhaps the thought of having to dig in the back pocket for a rights issue is a concern.
I guess the whole deal revolves around the ability to get the coal to the wharf in the big tonnage required and the price of the coal staying where it is or improving.
Hello Fish...
Ive been busy... just got me some plastic surgery and a new pair of shades ... check me out -->:cool:
with a new smile to boot, I feel totally refreshed...
...
short term CUE vs NZO?
Without turning the thread into CUE, I will keep it real short...
it could go either way....
if the next NZO well fails the sp will drop, but will remain up over the medium term...
both are promising stocks...
:cool:
.^sc
Now that NZOG is an oil and gas producition company, won't its price follow the price of oil and gas?
Sure a few knocks from dry wells but if the price of its products from Tui and Kupe goes up, this will dwarf the short term costs. The value of Pike River Coal Ltd will also help once coal production gets into full swing.
How much of the Managements supposed 200 years experience is in Coal Mining, to back PRC with Millions of Shareholders Money chiefly rised for its core business, Oil & Gas
Arbitrage
NZO don't have a very large stake in Tui. And since the field is in decline, production is pretty minimal compared to NZOG market cap.
Kupe is quite similar. Gas is sold according to long term contracts that don't fluctuate with the oil price and the associated condensate production is (relatively) low.
Therefore without near field discoveries there is not a lot of leverage off the oil price.
so there goes 50 million bucks from NOG war chest that is going to be used to bail out a company that was formed from inside nog in the first place. What a mess. Net cash at the end of the June 09 period was 174 million and now it is down to 118 million and they are going bail the clowns down the mine out to the tune of 50 million. Oh nice one. What has the staff with 200 years of exploration experience that is costing nog a million/month done for them? So far they have invested heavily in Albacore which was dry and the only other rank exploration target they have come up with is a 10% stake in Hoki. Not particularly a good investment in exploration. mean while they are spending a lot of money which so far hasn't produced results apart from increasing their investment in a failing coal mine on the west coast which I would say isn't their core business.
OK they have tui wells coming up but a lot rests on these. Hoki even if it is a discovery will take years to develop and nog 10% isn't going to get them much.
Totally agree with your points notie. For all the talk of being such a great company NZO has not taken advantage of the GFC when they were in a position to do so. Their inability to put deals together has cost them...look at the FX debacle!!!
The PRC situation has forced them into a corner.
what happens if:
their a no new commercial tui wells
prc never actually gets to its IPO projections and requires more capital (again)
hoki is dry
There is probably an even change of the first two and a 90% chance of the third.
A $600m company becomes a $300m company.
Just prior to the 2008 AGM I had my name in for director nomination.I pulled it at the last minute as my technical knowledge of the oil play made me wonder if I would be of use to the company.Remember we have as a family 1% of the company so everything must be go and that includes myself out of the way if necessary.Well that was my thinking at the time,supported indirectly by a few other unnamed persons.The way the cookey has finally crumbled with PIKE,those reasons have turned out to be not only invalid but a loss to the company.
Looking at the board of directors you have to be impressed with the team put together for oil and gas exploration and development,but who knows the insideouts of mining? There may well be 200 years of accumulative experience in oil but is there 200 minutes in coal mining? The decision to bale out PIKE with our already 30% is the right one and in time could still turn out to be a sound economic move.
Two weeks ago I rang the company to discuss PIKE but DS was overseas and Chris Roberts was on holiday. Some secretary took my message and someone was suppost to get back to me but as yet silence.I wanted to give my support to a further investment in PIKE but we need changes first. Above all we need hosesty with committments.Trying to hide bad news is bad business.The formost concern is to devolope a culture of small promise and large delivery,not the other way around.
And secondly it might pay to sack some very expensive geoligst that are giving advise to the company. Gordon Ward said in hamilton that even the geoligst were suprised that the ventiluation shaft collapsed the way it did. I was brought up knowing that mine collapses occour from very fine cracks that you do not see.You do not see the cracks but you can hear them.I well remember many occasions watching my father and brothers with there ear to the rock face listening for stress in the mantle.Areas would then be labled safe or dangerous. I have never heard of a safe one that collapsed. But hey i am talking about Canadian Miners --the best in the world. So the ventulation shaft collapsed because the rock at the bottom was under a lot of stress and was talking to technical proffessionals who do not have decades of rock face experience to know what the stress sounds were saying.
Now do i need to go on about running into this garbon--surely not.Just lack of mining knowledge.
Might leave the rest of what i got to say for some other time.Finish with a call for a few changes at the PIKE face,otherwise the errors will just keep hapening. I wanted this before we invested more monies.
Digger you need to get an answer phone - we've tried calling you back around a dozen times over the past three weeks!
Thanks Chris for that info. We have been busy and on holidays or shopping ,etc so maybe we do need an answer phone.
I am very hopeful the company is fully aware of the need for changes in the way PIKE informs [not] the shareholders of what is going on.
I will ring you at 4 this afternoon.
Hi Digger,
Your comments about Pike Geology and the lack of anticipation of finding unstable rock around a fault line seem very valid .
We are all human and make mistakes but you would think that some of the ? 20 geologists employed by nzo might have advised on the possibility .
How did your phone call with Chris go ?
Are the geologists or Pike River management going to be paid bonus,s or have salary increases this year ?
My feeling is that it would be sending the wrong message if anyone at PRC had a salary increase this year .
Hi Fish,
We did not talk about salary increases. In fact such under the circumstances such a thought is and should remain unthinkable.
As a 30% shareholder NZO is not entitled to any info about PIKE that is not available to every other shareholder,so NZO only know what we know from public releases.Chris seemed to think in the next week or two the Garbon should be clear.But even that is going on Cals from PIKE's release.
My comments were noted as i outlined in previous posts about geologist that are making too many mistakes but Chris seems to think they are now slowly getting the feel of the mine and its problems. I particularly wanted to know why the Garbon was not known about until it was struck. About two years ago I did ask Gordon ward about when they first hit coal would it not be coal and then rock and then coal. To me that is more likely given the Fault being sooooo near. GW assured me his geologist were confident it would be all coal once coal was struck. Well now they are doing what i call minute holes to know in advance what is there. This is an area i want to know more about. Chris did say that the company did want to do more exploratory drilling but could not do to the Park thing.
Balance has made some comments that Liberty Harbor wanted out but i am assured that PIKE has the right to pay them back as i suspected.
Also he feels that PIKE will get underwriten.
My two main points about ventilation shaft and the Garbon i will have to take up with PIKE itself.
The other point is that when NZO become the bond holder they will be entitled to more info than as just a shareholder but to us that is of little use as that info to a bond holder is not available for general release.
I also pointed out that NZO won last years best info to shareholder and PIKE must have come last. Well lets hope they came last as it must not get any worse.More PIKE missed targets will now rub off on NZO so we really need to act in this area.
I would like to see PIKE take up a weekly release of coal stockpiled to meet there own targets.Also stressed the need to get bad info out from the directors and not wait until the press or pub spreads the news.Note these are just my thoughts and as PIKE is a seperate company NZO can only pass on these thoughts.
The good news here is that the resource is there and the price is rising so all will probably turn out in the end.In fact it would not suprise me if and when PIKE get underway if the SP will outpreform NZO. But for now PIKE is NZO's Achilles heel.
I want PIKE to sack the geologist that made the mistakes and hire some old miner that has spent his life in mines. Probable never read a book in his life but can read rocks and much better than some theoratical geologists working from a comfortable office.
Cheers for now.
Sympathise with your sentiments Digger.
However, I suspect it takes a bit more than a bit of rock kicking with hobnails to find the motherload whether it be coal, oil or gold. Correct me if I'm wrong, but a graben was probably always on the risk analysis from the start.
There's always the next well to drill?
Wish NZOG would pay a high dividend to shareholders and when it makes big investment decisions like putting more money into that dark hole PRC or invest in some offshore venture, it has to convince shareholders to put money in via a cash issue.
That day will never come however.
nzo investment in ppp now looking pretty sick with sp of 25c au.
nzocan buy another 4% of ppp to take it to just under 19% and thus not required to make a bid for company, however have to be mindful that once a non australian company owns more than 15% then ppp will not longer be classed as an entirely australian owned and what implications this will cause I do not know - it may be just more reporting or it may be more.
upcoming tui drills have to be good and there are no prizes for guessing what shareholders will be expressing if they are not good and nzo investment goes sour
M
Strange how most of us have very short memories. It was not that long ago when NZO was berated for not buying more of PPP. The story then was look at how much they lost when they could have bought at 40 to 50 cents.
I place little likehood NZO will increase in PPP even now with the need to focus on PIKE. Pike will end up a good producer even if now they are well behing[2 years] what formally was targeted. Now i think PIKE is in a much better understanding of the problems with this coal mine. The resource is there and the plan to produce is slowly taking shape. So with PIKE will we in two years again show our short memory and say NZO should have taken out PRC when it was only 85 cents in March 2010. Would not suprise me,and it will be the same ones now saying the opposite what was said a few months ago about PPP.
From my memory: the 'strategy' re PPP purchase was mainly to support its shareprice while it was trading below its cash backing during the 'GFC'. TR would likely have been worried that some raider snaps it up on the cheap. The purchase price was mostly in the 20s cent range, so it is still a good investment (plus the divvi received).
I'm with you Digger, I can't believe the number of "down day" moaners, as soon as things look a bit tough you all start whinging, making dosh is not simple, good times and bad times go hand in hand, Some of you buggars need to harden up a bit. Being in business involves taking risks, you might lose a bit (or your shirt) and you might make a bit (or a house in the Sounds).
Nog is in the oil and coal business at the moment...risky but could be (will be in my opinion) rewarding.
Didn't notice Scott Styris goin all soft when the Ozzie bowler wanted to stare him down last night, thats what I like in a joker, take no sh.t !!
But we need these negative people to create price drops so I can trade profitably. Keep it up I say.
BigBob - and you have the support of many others.
Nothing has changed since this posting in September 2007:
"Balance your a share knocker freak.You must have got your schooling from religious zealous. You have the intended ability to see only what you want to find. I am left wondering why the NZO SP is not about 10 cents after reading your supposed balance comments. Could you shed any light on why it is still over a dollar dispite your many attempts to get it lower.
Finally is there any difference between Balance,Sniper,etc.
But of course you would write that.
We don't see you cheerleading PRC any more and putting down posters who disagree with the harping on and on of how great PRC was.
Luckily there were those posters who provided balance?
"Dr Who,
And what grounds do you have for accusations of insider trading?
Is it that a share price rise goes against your continuous and often irrelevant flow of negative information?"
If no oil has been discovered after the Kan Tan IV does its spate of drilling, how much will the SP drop? I know it's hard to determine but would like to see some estimates.
Thought you would be way down the crib BB where there is no internet, have they even got the phone down there yet ??
Let the games begin !!
The Kan Tan IV drilling rig is on location and is preparing to start drilling the Hoki-1 exploration well.
Regards
Chris Roberts
Public Affairs Manager
a silly question.
if you were investing in this drill. Wouldnt you be better to invest in AWE ? seeing as NZo only has 10% ??
Participants in Hoki-1 and PEP 38401 are:
AWE (Operator) 50%
New Zealand Oil & Gas Ltd (through its subsidiary Petroleum Resources Ltd)
10%
OMV New Zealand Pty Ltd 21.25%
Todd Petroleum Mining Company Ltd 18.75%
Obviously some think so, AWE are up nearly 5% today
Not a silly question at all. Since AWE has a market cap of $A1331 million, and 50% of the action, you would need to spend $1331/50 million to get 1% of the action, or perhaps $A2662 to get 1 millionth of the action.
With NZO market cap $A455 million and a 10% share you have to spend $A4550 to get 1 millionth of the action.
Both have other assets, but for a pure play on this drill, AWE is a clear winner.
If NZO found Kupe why did they only end up with 15% of it?
Its my understanding that 1 in 10 drills are successfull...has anyone given/considered the odds on this one....more from a pure punting/odds point of view.
Hold AWE NZO
cheers
Logen, Kupe cost over a billion dollars to develop, was it $1.3b at the end? Way too much for NZOG on their own. Oil and gas companies usually "farmout" their interest in fields, spreading the risk and the rewards.
Cheers, seems a shame that you find something and end up with 15% of it. How come PPP didn't get a stake? (Or didn't they want one?)That would have effectively been good for NZO due to their stake in PPP.....another way of them getting more value out of the asset they discovered. Anyone know?
hoki-1 article
http://www.stuff.co.nz/business/3411...to-yield-truth
M
Possibly up to 250 million barrels, it reckons? I recall an article a few years ago about several possible "elephants" off the Taranaki Coast in deep water. They had sheep names like Romney and merino. Does anyone else remember that? I wonder if this is one of these elephant sheep. As the article says, if there's oil in Hoki, it increases the chance of more finds nearby. Another question - does NZOG have interest in nearby permits? I suppose I could look it up.
Price of oil has been edging up this last month. And $NZ down. Latest figures - Tapis US$83.36 and $NZ at 69.7, gives NZ $119.60 per barrel. The Feb average was $110.
Exciting times again!
On the 4th Dez 2009 we received an update on Kupe stating that production will be bedded down within a couple of month. After more than 3 month we do not appear to have any confirmation. What's going on???
What is going on is NOG time,so wait out this couple of months and all will be revealed.If problems were greater than the usual teething startups we could expect to have heard. Be positive --no news is good news. Now time to get excited about this Hoki drill. Probably the snowball's chance but you never know.
There was an update in the last Quarterly Activities Report. The commissioning phase was progressing well and the official opening was expected in mid-March. I would expect another announcement from the company in the next week or two. If the plant is ready for permanent production this month, then that would be a pretty good achievement.
Digger, NOG time seems to have been largely consigned to the past. Perhaps Gordon Ward borrowed it for PRC.
Has anyone heard how the drilling is going?
I read that the Hoki results should be known 3 weeks after the commencement of the drilling.
And the result will be that hydrocarbons will be found and it will take three more drills over two years to determine whether there is a commercially viable structure. Thats the good side. It might be a dry hole, in which case three weeks will do the job. There hasn't been a gusher since before Doris Day became a virgin.
no
weekly report will be out within 7 days
m
Is that seven days GMT or NOG time?
Won't the report after 7 days just state where they are at in terms of the drilling depth? In that case it won't be information of any consequence in terms of: is this well dry or not. It would be the actual outcome of the drilling the would interest most people I would guess.
These days NZOG should give a daily progress report. Drilling is so quick that 7 days is too long. Look at the last hole they drilled.
Back in the drilling boom of the 80's reports were made far more regularly with much poorer communication technology. Perhaps even a Twitter commentary each day to keep the investors better informed?
How about it NZOG?
Drilled to 1500 metres already, bloody hell should be in the oil by Tuesday I reckon !!
NZO
11/03/2010
MINE
REL: 1151 HRS New Zealand Oil and Gas Limited
MINE: NZO: Hoki Exploration Well Disclosure Notice
NZOG (New Zealand Oil & Gas Ltd) advises that the Kan Tan IV drilling rig,
having spudded the Hoki-1 exploration well on 5 March, is currently running
13 3/8 inch casing, having drilled to 1505 metres.
The Hoki-1 well is located in exploration permit PEP 38401 in the offshore
Taranaki Basin.
It lies approximately 135 kilometres west of New Plymouth and in water depth
of approximately 330 metres.
Hoki-1 is targeting the oil potential of the Cretaceous North Cape reservoir
sequence and the underlying Wainui sandstones. The well is planned to be
drilled to a total depth of approximately 3,570 metres.
Immediately following the Hoki-1 well, the Kan Tan IV will be used to drill
at least two wells in the area surrounding the existing oil fields at Tui,
where NZOG is a 12.5% partner.
AWE, as the operator here controls the release of drilling information.
Hence, the release of reports today by both companies.
http://asx.com.au/asxpdf/20100311/pd...6b24qtjsfc.pdf
I just read its costing $31.5m to drill Hoki over 3 weeks, which is about $1.5m a day.
If it only takes 2 weeks, do we get it cheaper?
Or will they drill on the the Tui wells for free during the spare week - yeah right.
Story from mid last year, something to drool over while we wait ...
http://nzenergy-environment.co.nz/ho...eep-south.html
I believe in the normal course of events, the rig will be hired by the day, with allowances for mobilization and relocation. If its a dry hole, they could move to the TUI area early, but if they find a significant hydrocarbon shows, then they may spend some time testing the various horizons. If it takes a few extra days counting all the barrels, that will be extra for the rig. The worst case is if there is a significant quantity of gas, which will make the development decisions very complex, and may stymie the development completely.
As Albacore showed, if there is nothing found, they can pop holes down very quickly. If they are still at Hoki next week then things will be interesting indeed.
yes albacore had a very soft roof, therefore nothing in the field worth going for.....as oil rises and disapats up and out.
does anyone know when geoligist shoot the sismics, if they are able to scan for dense strata above a likely target?
i know they can scan the bedrock below a field. and what about cracks or faults in the strata above a field?
is there a site that explains the workings of sismic scanning and interpritation .
Hi Arjay,
We must meet up again sometime. Interesting is I a made a very similiar comments about Mr Tommy's post but when looking up the list of wells we drilled that were also had heaps of predrill hype my post disappeared into hyperspace and i had other things to do so did not retype it. But still as Mr Tommy says it is good to dream on while we wait for the hard facts----and then return to our old jobs with heads down a little . This time we will not have long to wait until the next big thing. No doubt that the near TUI wells are the next south Mexico---pre the collapse that is.
Sound waves travel faster in higher density rock. There is also refraction when a wave travels from one density to another and that gives a lot of information as well. By taking muliple shots at the same target or scattered simultaneous recordings you can caluclulate depth and density - pretty hair raising comptuer power needed to unpick all the data though.
None of this tells you what colour the rock is though - or what it smells like.
thanks Casa for that.
so if it takes hair raising computer power, what did they do in the past, mainly as little as 10 - 20 years ago.
im asuming that further back like 50 years ago it was all wildcat territory?
im wondering now what the future might bring with satalite scanning or some such thing.
i think that oil explorers looking for investment dollars from the public could do themselves a big favour
by explaining how they go about their trade in searching for oil.
instead of just showing a coloured digital scan with arrows pointing at an area which they believe is oil, and saying there
might be a million or billion bbls.
and then ask us to pay for it.
Senors
A new study.
ScienceDaily (Mar. 11, 2010) — In a finding that may speed efforts to conserve oil and intensify the search for alternative fuel sources, scientists in Kuwait predict that world conventional crude oil production will peak in 2014 -- almost a decade earlier than some other predictions. Their study is in ACS' Energy & Fuels.
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Ibrahim Nashawi and colleagues point out that rapid growth in global oil consumption has sparked a growing interest in predicting "peak oil" -- the point where oil production reaches a maximum and then declines. Scientists have developed several models to forecast this point, and some put the date at 2020 or later. One of the most famous forecast models, called the Hubbert model, accurately predicted that oil production would peak in the United States in 1970. The model has since gained in popularity and has been used to forecast oil production worldwide. However, recent studies show that the model is insufficient to account for more complex oil production cycles of some countries. Those cycles can be heavily influenced by technology changes, politics, and other factors, the scientists say.
The new study describe development of a new version of the Hubbert model that accounts for these individual production trends to provide a more realistic and accurate oil production forecast. Using the new model, the scientists evaluated the oil production trends of 47 major oil-producing countries, which supply most of the world's conventional crude oil. They estimated that worldwide conventional crude oil production will peak in 2014, years earlier than anticipated. The scientists also showed that the world's oil reserves are being depleted at a rate of 2.1 percent a year. The new model could help inform energy-related decisions and public policy debate, they suggest.
NeopoleII
Well, as much as the computer people would have you believe otherwise - computers haven't got any better in the last 20yrs - just cheaper. When I were a lad - time on an IBM 3090 cost $1.20 per second of CPU. But those old 3090s could rip through calculations quicker a bolt of lighting greased up with WD 10/30.
And in those days -you had programmers who knew how to write efficient code.
50 years ago (more like 90 actually)- - One of the first oil explorers in the middle east (can't remember who they were), struck a happy bit of dumb luck by drilling on the top of the hillocks and by pure co-incidence that's where the anticlines were. So, yes - sort of wildcat, hunch and indicators such as oil seeps.
Satellites wont do much for oil people - ok for spotting stuff on the surface and larger gravitational anomalies (the Tibetan plateau makes satellites dip in their orbit - but nothing like the sensitivity of star treks tri-corders.
On the hand - it was Rutherford who said that you'd never get energy out of atomic decay ('is talking moonshine') - so you never know.
Brucey09 -
I was wondering when peak oil would raise its ugly head again. I note that whilst Europe and NA are both pretty much static in oil demand - but the boom time boys in the far east are rapidly ramping up demand - - wasn't there a report just the other day that China's oil imports for Jan leapt out of the box?
I'm paying for it at the pump already. Had to take a mortgage out last time I filled up.