.0225 cps:D
(disclaimer calculated @ 45$pb and .71USD-NZD)
Printable View
.0225 cps:D
(disclaimer calculated @ 45$pb and .71USD-NZD)
Yeah right!
-0.037cps:(
(disclaimer calculated @shoe size 8 and two bottles of Macs Gold)
Anybody else want to make some numbers up[?]
PS perhaps that should be two bottles of Tui.
I was hoping Mister W would step in with some kind of model.
Beer goggles or not
130k daily from oil by my guesstimation, the company would be looking at profit after 120 days of operating at full capacity.
Even when the start up costs undoubtly swell to at least 15 million.
Best way to spend all that cash..... Drill Hector!
No offence, but I think your figures are very crude and way off (I am assuming you actually mean 22.5cps).
I had put the pre-tax profit earnings contribution of Tui over its entire lifetime to PPP at 29.5cps. (With lots of assumptions including
25mboe @ US$40 a pop and US/NZ 0.735).
Obviously you can move that higher or lower.
Also there is more to PPP than Tui, but at the moment that does not add to the bottomline.
None taken I meant two and a quarter cents per share.
MINE: PPP: PPP-APPLICATION LODGED FOR TUI OIL PRODUCTION PERMIT
STOCK EXCHANGE ANNOUNCEMENT
10 June 2005
APPLICATION LODGED FOR TUI OIL PRODUCTION PERMIT
Pan Pacific Petroleum NL advises that an application has been made to the NZ
Ministry of Economic Development for a petroleum mining permit to develop the
Tui Oil Area within exploration permit PEP38460.
Pan Pacific holds a 10% interest in the venture through wholly owned
subsidiary, WM Petroleum Limited.
The partners have also contracted with Diamond Drilling Co. to use the
semi-submersible rig Ocean Patriot to drill the four Tui production wells
next year. This action has been taken ahead of the final investment
decision, scheduled for August, in light of the tight market for available
rigs.
The venture has also secured an option to use the Ocean Patriot to drill
three more wells. It is likely that at least two wells will be drilled into
Kapuni F Sand structures which are close to the Tui development.
Contractor proposals for a floating storage production and offloading
("FPSO") facility for the Tui fields will be evaluated by the venture
operator next month. Engineering work is on schedule and capital costs are
being refined to a tolerance of 15% - while costs have yet to be finalised,
they are expected to be greater than the US$120-150m previously estimated.
Initial rates of oil production from the Tui fields are expected to be
30,000+ barrels per day, which should result in rapid payback of the
investment.
Kim Ware
Company Secretary
That black and white house cat must be a bit scolded. Seems to have vacated the vat. Thank goodness. Good riddance to bad rubbish. It was never a house cat anyway. Just a feral flea bitten stray.:D
Hey Kebabface
My brave feline did indeed meet with a terrible accident so how about a little bit of sensitivity because she was a blue ribbon champion.
Unfortunately the Chilean quarantine proceedures are medieveal.
Ask an Iraqi for your sensitvity. They might give a damn about you and what you think. I don't.
Anyhow, next time I see that filth ridden piece of skank, it will be with glee that I club it as if it were a seal.[8D]
As for PPP maybe we will see some direction out of Oz today on it. Its certainly been hibernating for long enough. Should be some uwards pressure as the 3Q05 decision on Tui comes to pass.
Think you may be right Donner.
Is PPP going to start following NOG ??
Interesting...?? Been good to watch last few days. Buying has been positive, but intermittent.
Watching closely.
Yeah but where are they going to get their share of the capex funding.
Quote:
quote:Originally posted by Happy
Yeah but where are they going to get their share of the capex funding.
From the punters such as your good selves, where else? [xx(]
Good luck to them!
Quote:
quote:Originally posted by Happy
Good luck to them!
Maybe NOG will have some spare cash after options conversion and Pike float so that they can pay PPP's share of the costs for another 7.5% of the oil field. [:p]
Isn't Mitsui carrying them for some or all of the cost of development?
It was a long time ago but I remember something like this.
CREDIT TO WAAIHOEK, FOR THIS ARTICLE BELOW, COPIED FROM NOG PAGE.
According to the report below, so far this year average price of crude (Nymex ?) has been
above US$ 50 / barrel !!!!
--------------------------------------------------------------------
http://www.etaiwannews.com/World/200...1118800993.htm
OPEC powerless to rein in oil prices
2005-06-15 / Reuters /
OPEC producers, considering an increase in oil output limits, said on Monday they were powerless to rein in prices now back above US$55 a barrel.
The Organization of the Petroleum Exporting Countries says it is operating close to full crude supply capacity and can do nothing to combat a global squeeze on refined products, particularly diesel.
Ahead of a Wednesday OPEC meeting, leading producer Saudi Arabia was among several backing a proposal for an increase in formal cartel crude supply limits of 500,000 bpd, 2 percent.
"I think everybody will support it, but I don't think it will have any impact," said Algerian Oil Minister Chakib Khelil.
Ali al-Naimi, oil minister for Saudi Arabia said Riyadh was already pumping as much as it could sell and blamed refinery bottlenecks for keeping the heat under energy costs.
"You know and I know that what is driving the price is not supply - it's the lack of refining capacity worldwide," Naimi told reporters in Vienna, home to OPEC headquarters.
"Everybody is concerned about middle distillates," he said in reference to the refined products diesel, jet fuel and heating oil.
Traders said the remarks helped underline market concerns about the ability of refiners to meet rising demand in the second half of the year. U.S. light crude rushed US$2.08 higher to settle at US$55.62 a barrel.
"Diesel prices have been sustained by several factors including strong global demand, extended refinery maintenance on upgrading units, and refinery disruptions in the Caribbean," said Goldman Sachs.
The average price for the year so far is nearly US$51 a barrel, up from US$41.47 on average in 2004 and US$30.99 on 2003.
Last year's Chinese-led demand boom took producers and refiners by surprise after years of slow investment in capacity across the upstream production and downstream refining industry sectors.
Led by Saudi, OPEC is trying to rebuild spare capacity but for the time being the group is at full stretch. "OPEC members are already pumping at full capacity and can do nothing about prices," said Iranian oil minister Bijan Zanganeh.
So far, the world economy has largely absorbed higher energy costs, helped in part by government subsidies in emerging economies.
The United States has proven particularly resistant. U.S. diesel demand over the past four weeks has been running 6 percent higher than last year as the trucking industry moves Chinese imports to market from the West Coast.
But OPEC worries that a sustained period of US$50 oil could hit long-term demand and create an incentive for investment in alternative fuels.
"More than US$50 to US$55 for the long term it seems is not good for the world economy," said Zanganeh. "It seems in the long term a very high price will probably have a bad effect on the world economy, and we prefer not to witness this situation, but I think OPEC cannot do anything."
Yes the PPP share is mostly carried and they have cash from sell down of Tauton gas assests in OZ.
Any overrun would be soaked up by private placement.
was it based on a percentage or a capped amount?
percentage from memory.
the original press release may answer your questions.....
30 October 2003
PEP38460 PERMIT – FARMOUT CONCLUDED WITH MITSUI & CO.
Pan Pacific Petroleum NL (PPP) advises that the previously announced farmout of a 5.0% interest in PEP38460 has now been concluded by execution of a formal sale and purchaseagreement with Mitsui & Co Ltd (Mitsui) leaving PPP with a 10% interest. Regulatory approval of the transaction is now being obtained.
PPP’s Chief Executive Tony Radford commented “We are pleased that Mitsui have recognised the prospectivity of the West Maui permit and the significance of the Tui oil discovery made in February 2003”.
Mitsui is a significant company, with a market capitalisation of approximately US$10 billionand worldwide oil and gas interests.Mitsui will fund up to A$3 million (US$2.1 million) of PPP’s expenditure in PEP38460 over thenext year for its share of:
1. Two firm exploration wells (Amokura and Pukeko)
2. A third exploration well, dependent on results from the Amokura and Pukeko
3. If a development proceeds, initial development costs of US$9.5m (A$14m approximately).
The PEP38460 joint venture has signed a letter of intent with Diamond Offshore Drilling Co.for the use of one of their semi-submersible drilling units for drilling expected to commence in March 2004. The likely drilling unit is the Ocean Bounty, which drilled the Tui discovery well.
Cam,
"3. If a development proceeds, initial development costs of US$9.5m (A$14m approximately). "
I think that in the detailed agreement this clause was time-limited ie FID development decision had to take place prior to a certain date otherwise obligation for Mitsui to provide funding lapsed. The expiry date was late last year so the clause no longer applies as the FID has not yet been made - I will try to find reference and post
The only thing I could find was this....but couldn't find any reference to development costs...just drilling
The Mitsui farmin to the Tui area expired on 30 October 2004 with Pan Pac
receiving a partial carry through the drilling of 4 wells
Sorry I can't cite reference.
I think (but am not 100% sure) that Mitsui development carry for PPP expired end 2004. I am definite that the Mitsui carry of NOG did expire at that time.
Maybe enquiry to company would be appropriate for those interested.
I didn't think the carry had an expiry date.
An email to the company should clear it up.
No reply yet on the details of the Mitsui carry.
Interesting to see wedge forming on increased volume.
Will test resistance in the short term. (previous support level @ .14cents)
This share has been a candlestickers nightmare often giving false signals and seldom exhibiting early warnings of price moves, volume seems to be the most telling indicator here.
I emailed .....Quote:
quote:Originally posted by kittydashwood
No reply yet on the details of the Mitsui carry.
Hello,
I am a shareholder in Pan Pacific Petroleum and have a query relating to PEP 38460 in New Zealand and the development of the field.
It was stated in a press release in October 2003 that If development
proceeds, initial development costs of US$9.5m (A$14m approx.) would be carried by Mitsui.
Is this still the case or did the carry for development costs have an
expiry date?
REPLY....
Dear Sir,
Your email refers. The Mitsui farmin to the Tui area expired on 30
October 2004.
For your information I attach copy of December 2004 Quarterly Activities Report where under the heading of FINANCIAL (page 2) there is mention of this.
If you require additional information, please do not hesitate to contact me.
Regards
Marianna Bayatrah
Pan Pacific Petroleum NL
Level 3, 88 Walker Street
North Sydney NSW 2060
Australia
Telephone: + 61 2 9957 2177
Email: mariannab@panpacpetroleum.com.au
Info in the quarterly....
FINANCIAL
The Mitsui farmin to the Tui area expired on 30 October 2004 with Pan Pac receiving a partial carry through the drilling of 4 wells – see ASX releases of 3 October 2003 and 30 October 2003.
Cheers CAM
I received a reply today and it read along the lines of yours.
Interesting price action both sides of the Tassie today, with some solid looking depth on the ASX.
Momentum seems to be slowly building all be it with the assistance of 60$ oil. Volume higher but still pretty thin. Looking at the three year chart you can see a repeated pattern emerging, price spikes followed by very jagged shaped pan-handles which lead into the next price spike.
Looking to accumulate more of these on positive announcement. Probably on the more liquid ASX.
Oh yeah that seal butcher donner (who seems to have a bit of a hardon for cute furry animals), will be pleased to know I have a new cat in my vat.
:)
People will make up their own minds whether I am a butcher of seals Ruth. Just like they will make up their own minds about whether or not Kittydashwood is Capitalist.
I guess they will also come to their own conclusions about why you are too gutless to post under your Capitalist pseudonym anymore except for on the lamest of threads. Why don't you offer an opinion on GEN again?[B)]
Gee kebab head maybe it's because i'm not Capitalist and not female.
HAHAHAHAHAHAHAHAHAHAHAHA
Look at our syntax, our beliefs, our politics and the stocks we hold .... very different.
Besides if you check carefully you'll see I gentley rib that SL driving matron every chance I get.
Put the seal club down dude
I emailed you apologising for Donner's obsessive behaviour. Thanks for being so polite in your response. And I daresay I am younger than you.
KITTY, I always thought that you three were all female. Why the hell a bloke would call himself a bloody cat has me beat. macdunk
Different strokes for different folks eh dunc.
Besides it will look better on the SSH.
You wouldnt be having me on kitty would you?. macdunk
Kitty must be ancient. Capitalist is already menopausal. Perhaps now that you are emailing each other you might like to offer her some advice on how to cope with those hot flashes, which oestrogen patches are best (I recommend Climera Pro) and the best way to remove that unwelcome facial hair.
No wonder you like cats. Most old ladies do.
GOOD GAWD I AM IN THE MIDDLE OF A CAT FIGHT. macdunk
You have to wonder about a person's life when they are obsessed with anonymous entities on an internet chatroom - :D:D:D
Wadda loser. You are a retired old freak Donner - with nothing better to do than harass others on the internet. Just like Rocking - or are you Rocking? :D:D:D
Silly me. I clicked on this thread cause I thought someone might have some ideas on PPP. Oh well the "share certificate" aint hurting noone in the bottom drawer.
[8)]
After market announcement on ASX
PPP
28/06/2005
DIRECTOR
REL: 1724 HRS Pan Pacific Petroleum NL
DIRECTOR: PPP: PPP - BOARD CHANGES
STOCK EXCHANGE ANNOUNCEMENT
28 June 2005
BOARD CHANGES
Pan Pacific Petroleum NL announces that after 13 years of service Mr Kevin
Watson has resigned as non-executive director.
Kim Ware
Company Secretary
PPP stock symbols: ASX - PPP
NZX - PPP
Pan Pacific Petroleum NL ACN 000 749 799
Level 3, 88 Walker Street, North Sydney 2060, Australia
Telephone: +61 2 9957 2177 Facsimile: +61 2 9925 0564
Website: www.panpacpetroleum.com.au
End CA:00117340 For:PPP Type:DIRECTOR Time:2005-06-28:17:24:11
Tax advantage for local oil producers?
From IRD carbon tax pdf.
Petroleum oil and oil products
5.2 The tax will apply to imported oil products other than those delivered directly to a New Zealand refinery, and to most emitting products of New Zealand oil refineries. It will be collected at these points by the Customs Service, as part of the existing excise system. Process emissions from a refinery will also be subject to the tax, which will be payable to Inland Revenue.
5.3 This approach is intended to minimise the compliance and administration costs of the tax, using relatively few points of obligation and relatively few emission factors for the bulk of the oil product sold.
5.4 Emission factors for crude oil vary with each shipment, and even within the hold of an oil tanker. Determining emission factors for crude oil could therefore be imprecise, costly or a poor compromise, so the focus is on the refined products produced from it.
5.5 It is possible to burn unrefined crude oil to produce useful energy, although this does not appear to be occurring in New Zealand at present. In such cases the carbon tax would be applied, so appropriate emission factors would be needed.
Who's anonymous? and who's the obsessed one Ruth?Quote:
quote:Originally posted by Capitalist
You have to wonder about a person's life when they are obsessed with anonymous entities on an internet chatroom - :D:D:D
Wadda loser. You are a retired old freak Donner - with nothing better to do than harass others on the internet. Just like Rocking - or are you Rocking? :D:D:D
But don't ruin a perfectly good thread for Kitty will you? Just bug off and persue me else where.[:X]
ANyway, I'm not surprised you have gone into hiding. We always knew you were pretty dumb and without scruples (remember the Toyota) inspite of the good grammer and punctuation. Check out the following on Citigroup. Whatsmore, it was with the approval, support and connivance of the boss men.
Citigroup fined £14m by watchdog
http://news.bbc.co.uk/2/hi/business/4629391.stm
Increasing volume and improving share price piercing the downtrend despite falls in crude.
Resistance at .14 looks solid but could evaporate with a few big buyers starting to look our way. The US Energy Department shocked analysts today when it announced an unexpected advance in crude supplies of 1.1 million barrels. Proving that the gain was no mere fluke, the American Petroleum Institute (API) backed up this report, announcing an increase of 2.9 million barrels. Most experts believed that crude inventories would decline during the past week. Crude for August delivery closed down 1.62 percent, or 94 cents, at $57.26 after touching an intraday low of $57.07 per barrel.
PPP
23/08/2005
FLLYR
REL: 1723 HRS Pan Pacific Petroleum NL
FLLYR: PPP: APPENDIX 4E - PRELIMINARY FINAL REPORT - YR ENDED 30 JUNE 05
Pan Pacific Petroleum NL
(ABN: 69 000 749 799)
Appendix 4E
Preliminary final report
Financial year ended 30 June 2005
Results for announcement to the market
$A'000
Revenues from ordinary activities down 27% to 5,578
Loss from ordinary activities after tax attributable to members Up 44%
to (3,995)
Net loss for the period attributable to members Up 44% to
(3,995)
Financial Overview
Following the conditional sale during the year of the Company's interest in
the Tubridgi gas joint venture, PanPac is increasingly concentrating on its
oil discoveries in New Zealand's Taranaki Basin.
Proceeds of the Tubridgi sale were not received until settlement on 4th July
2005 and are therefore not reflected in the 2005 financial statements. These
financial statements also include a full year of Tubridgi revenues and costs
Exploration write-offs during the period were $2,798K. These costs mainly
related to drilling of the Kiwi exploration well and all accumulated costs of
drilling and evaluating the Taunton prospect. Costs related to the
Tui/Amokura/Pateke oil field discoveries in the Taranaki have been carried
forward in accordance with the Company's accounting policy.
The overall result for the year was a loss after tax of $3,995K.
Exploration and Appraisal
During the year the operator of the TL2 joint venture evaluated the economic
potential of developing Taunton following the drilling of Blackthorne-1 and
concluded that a Taunton development was a commercially marginal project.
However, future development might be possible if discoveries are made nearby.
In the Taranaki Basin, New Zealand, PPP increased its interest in the
PEP38483 permit to 14.09% ahead of conducting a 3D survey over the Hector
area. Processing of this seismic is currently being carried out, ahead of a
drilling decision.
The Hector area is considered highly prospective due to a combination of
favourable reservoir development in the Kapuni Formation (F sand) and the
proximity to the hydrocarbon "kitchen" sourcing these reservoir sands.
In the PEP38460 Joint Venture, 3D seismic data was acquired over the northern
portion of the Pateke oil field. Other prospects, identified from earlier 3D
seismic, include Tieke (formerly called Weka), Oi, Matuku, Taranui, and Kahu.
Of these prospects, Tieke lies up-dip from Tui, which enhances the
likelihood of oil charge. Tieke has an unrisked potential for 25 million
barrels at the Kapuni "F" sands level. Taranui has higher potential (40
million barrels at the "F" sands) but appears to be less optimally located
for oil charge.
The Tui venture operator continued engineering and pre-development work on
the Tui Oil Area.
Outlook
The Taranaki basin will be the main focus for Pan Pacific in the coming
year:-
- Within the PEP38460 Joint venture (PPP 10%), a formal investment
decision for the Tui Oil Area development is on track to be made by joint
venture parties by 31 October 2005, which would lead to first oil production
in the first quarter of 2007. Initial rates of production are expected to
exceed 30,000 barrels per day. Rapid payback of the investment in the Tui
development is supported by an oil price of US$35 per barrel.
- Interpretation of 2D seismic data acquired over the Hector prospects
in PEP38483 (PPP 14.9%) are expected to lead to a drilling decision before
the end of 2005.
Two wells are proposed for drilling prospects adjacent to Tui, which if
successful could be tied into the initial development.
In the Carnarvon basin several exploration prospects including Bricklanding
in TP7 (PPP 4.16%), are being reviewed as possible drilling candidates. In
WA254P (PPP 2.99%) several prospects are being evaluated from recent seismic
reprocessing. Of these the Duomonte prospect is a candidate for drillin
Within the PEP38460 Joint venture (PPP 10%), a formal investment
decision for the Tui Oil Area development is on track to be made by joint
venture parties by 31 October 2005, which would lead to first oil production
in the first quarter of 2007. Initial rates of production are expected to
exceed 30,000 barrels per day. Rapid payback of the investment in the Tui
development is supported by an oil price of US$35 per barrel.
- Interpretation of 2D seismic data
End Quote
So if development is supported at us$35 and it will in fact bring a rapid payback at that price,then PPP must be sitting on a pretty bit of earnings when the real price of oil is factored in.By 2007 that will be in excess of US $100. This sweet crude is now acknoledge as already being in termal decline,according to reports from none other than OPEC.
Think i will sit on this one like with NOG and wait for reality to hit home with the investing public.
I like the increased interest in the PEP38483 permit to 14.09%
IMHO Hector is the most exciting prospect on the West Coast.
Pan Pacific to focus on NZ prospects
Neil Ritchie, New Zealand
Wednesday, August 24, 2005
DUAL-listed Pan Pacific Petroleum has reported an overall after-tax loss of A$3.99 million for the June year and says it is now concentrating on its oil discoveries in the Taranaki Basin, New Zealand. It has now exited from the almost defunct Tubridgi gas field off Western Australia.
The Sydney-headquartered company told the ASX and NZX yesterday that its A$3,995,000 loss included a full year of revenues and costs from its former interest in the Tubridgi gas field as proceeds from that sale were not received until after the end of the financial year (July 4).
Exploration write-offs during the period were A$2,798,000, mainly related to drilling the unsuccessful Kiwi exploration well in offshore Taranaki licence PEP 38460 and accumulated costs of drilling and evaluating the offshore Western Australian Taunton prospect.
Following the drilling of Blackthorne-1, the TL2 joint venture concluded a Taunton development would be a commercially marginal project, though future development might still be possible if further nearby discoveries were made.
Pan Pacific, which holds a 10% stake in the Tui Area (Tui-Amokura-Pateke) oil discoveries elsewhere in PEP 38460, said a final investment decision on development of these was scheduled for late October.
FID by that date would lead to first oil production in early 2007, with initial flows expected to exceed 30,000 barrels of oil per day (bopd). Rapid payback of the investment in the Tui development was supported by an oil price of only US$35 per barrel (currently US$65).
In addition to the Tui development wells, two exploration wells were proposed for adjacent prospects, which if successful could be tied into the initial development.
Candidates included Tieke, Oi, Matuku, Taranui, and Kahu - with Tieke (updip from Tui and having unrisked potential for 25 million barrels at the Eocene-aged Kapuni F sands) and Taranui (40 million barrels at the F sands) the most likely.
Also interpretation of 2D seismic data acquired over the Hector prospects in nearby PEP38483 (Pan Pacific Petroleum 14.9% interest) was expected to lead to a drilling decision on that acreage before the end of 2005. The Hector area was considered highly prospective, due to favourable reservoir development in the Kapuni F sands and proximity to the hydrocarbon "kitchen" sourcing those reservoir sands.
In the Carnarvon basin several exploration prospects, including Bricklanding in TP7 (PPP 4.16%), were being reviewed as possible drilling candidates.
Several prospects wree being evaluated from recent seismic reprocessing in WA254P (PPP 2.99%). Of these, the Duomonte prospect was a candidate for drilling in late 2005.
19,583,333 private placement
5,416,667 shares for Alan
Looks like PPP are ready for the formal investment announcement for the Tui Area oil development. Maybe in the next three weeks as I'm sure NOG management will want a golden apple to take to their AGM.
PPP
02/09/2005
ALLOT
REL: 1639 HRS Pan Pacific Petroleum NL
ALLOT: PPP: APPENDIX 3B - CONDITIONAL NEW ISSUE ANNOUNCEMENT
Rule 2.7, 3.10.3, 3.10.4, 3.10.5
Appendix 3B
New issue announcement,
application for quotation of additional securities
and agreement
Information or documents not available now must be given to ASX as soon as
available. Information and documents given to ASX become ASX's property and
may be made public.
Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000,
30/9/2001, 11/3/2002, 1/1/2003.
Name of entity
Pan Pacific Petroleum NL ('PPP')
ABN
69 000 749 799
We (the entity) give ASX the following information.
Part 1 All issues
You must complete the relevant sections (attach sheets if there is not enough
space).
1 +Class of +securities issued or to be issued
Ordinary Shares
2 Number of +securities issued or to be issued (if known) or maximum
number which may be issued
5,416,667
3 Principal terms of the +securities (eg, if options, exercise price
and expiry date; if partly paid +securities, the amount outstanding and due
dates for payment; if +convertible securities, the conversion price and dates
for conversion) Shares to be issued at A12cents subject to
shareholder approval being obtained at the next general meeting of ordinary
share holders
4 Do the +securities rank equally in all respects from the date of
allotment with an existing +class of quoted +securities?
If the additional securities do not rank equally, please state:
- the date from which they do
- the extent to which they participate for the next dividend, (in the
case of a trust, distribution) or interest payment
- the extent to which they do not rank equally, other than in relation
to the next dividend, distribution or interest payment YES
5 Issue price or consideration $0.12
each
6 Purpose of the issue
(If issued as consideration for the acquisition of assets, clearly
identify those assets)
The issue is to provide funds for Company's
working capital for exploration and development.
7 Dates of entering +securities into uncertificated
holdings or despatch of certificates
To be advised
Number +Class
8 Number and +class of all +securities quoted on ASX
(including the securities in clause 2 if applicable)
250,451,954
19,583,333
5,416,667
275,451,954 Ordinary Shares (opening)
From the AWE presentation Project pays out in 3 mths at 50$ per barrel.
PPP's EBITA target= A$20 million (yr1 @ 25$ pb)[8)]
More detail on tie-in candidates was pleasing.
Very excited by AWE's Cantebury Basin prospect look at the geology of that basin!
Should be the big story of 2006.
PPP
14/09/2005
SSHO
REL: 1547 HRS Pan Pacific Petroleum NL
SSHO: PPP: FORM 603 - NOTICE OF INITIAL SUBSTANTIAL HOLDER
Details of substantial holder:
GUARDIAN RESOURCES PTY LTD & ASSOCIATES
Percentage: 6.42%
New friends how nice. Nice cup of sweet oil anyone?
I can hear the trucks starting to be backed up.
NZX
Buy Market Depth Sell
Buy Quantity Prices Prices Sell Quantity
50,000 16 16.3 15,000
100,000 15 16.5 22,000
100,000 14.6 16.7 20,009
42,500 14.5 17 40,333
75,000 14 17.5 5,000
23,500 13.5 19 20,000
50,000 11 20 5,000
0 0 21 3,500
441,000 130,842
ASX
Buy Market Depth Sell
Buyers Buy Quantity Prices Prices Sell Quantity Sellers
2 274,441 14 14.5 98,567 1
3 263,002 13.5 15 175,000 3
6 362,499 13 15.5 50,000 1
5 207,900 12.5 16 166,775 4
3 315,000 12 17 62,500 1
1 50,000 11.5 18 40,000 1
1 100,000 11 19 62,500 1
1 100,000 10.5 20 30,000 1
1 100,000 10 30 200,000 1
1 100,000 9 0 0 0
24 1,872,842 885,342 14
My truck has 4 flat tyres.
Unimog is it FRED?
Where to from here for PPP? Is there any potential in this stock?
Obviously those buying options at 6c can see some potential. Expect the value of shares to steadily increase as Tui is brought on stream and to skyrocket if there is some exploration sucess :D:D
PPP gives best leverage to Tui. Do the sums. Not for traders just now, too long for them. As cheap as chips for those willing to buy and hold for a few months.
Hi lambton,Quote:
quote:Originally posted by lambton
PPP gives best leverage to Tui. Do the sums. Not for traders just now, too long for them. As cheap as chips for those willing to buy and hold for a few months.
This is hard to compare...basically you have to do some easy adjustments and some not so easy, i.e. lets start with the easy... PPP has twice as many shares/options on issue over NZO (making each share in NZO twice the exposure to TUI - on a per share basis) and then also factor in NZO holds 10.1% of PPP, then harder... adjust NZO back for KUPE, PRCC, cash and other prospects...
I'd be interested to hear your view, if you wish to share?
J9
Could NOG take over PPP?
Kupe, PRCC, Cash and other prospects - exactly NZO more diversified PPP has leverage. Then again like any leveraged positions high risk high reward big losses. You watch the traders come in when there is a hint of drill and thrill.Quote:
quote:Originally posted by Jess9
Hi lambton,Quote:
quote:Originally posted by lambton
PPP gives best leverage to Tui. Do the sums. Not for traders just now, too long for them. As cheap as chips for those willing to buy and hold for a few months.
This is hard to compare...basically you have to do some easy adjustments and some not so easy, i.e. lets start with the easy... PPP has twice as many shares/options on issue over NZO (making each share in NZO twice the exposure to TUI - on a per share basis) and then also factor in NZO holds 10.1% of PPP, then harder... adjust NZO back for KUPE, PRCC, cash and other prospects...
I'd be interested to hear your view, if you wish to share?
J9
Yes NZO could easily take out PPP if it suits em. Adds more risk I say when investing in PPP. Have some made money in the past and comfortable to hold a few for now.
NOG used to own more PPP but gave it away to shareholders
I know they distributed PPP to NOG shareholders (1:1) but have increased stake lately - comments in 1/2 yearly report could provide clue?
tim...i think you are on to it...
Volume in trading will increase soon, so on the price. With 400,000,000 of shares it will be hard, but...;)
I think you are right. The closer we get to the Tui development the more and more pressure is going to go on PPP. And with Hector Prospect being drilled in October (all going well), these shares are NOT going to stand still. Hector is a big prospect. Now if that hits oil, Wow.
Whether NOG has a go at PPP is anyones guess. I don't think so myself but could be wrong. NOG once had nearly 60% of PPP years ago. They could but I would be surprised. And if they did, it would be when NOG was higher and a perhaps script offer. Say 1 NOG for 5 PPP. Now this is pure speculation and musing. But of course, PPP could then join in with Kupe and Pike. And NOG would have PPP's Tui share and other Tui prospects and perhaps PPP's 14% in Hector if it comes in.... Still I can't see PPP being taken over by NOG in the short term. My 2c.
Barring a catastrophe, I also can't see PPP staying at these prices for too much longer. Perhaps another month or two at the most?
Kiwi Kev
yep, its happening now.
Someone sure liked them in Aus today with the highest volume traded since 1994. Higher than all thethrill and drills.
Something is going on IMO
FRED
In local paper today there was a speculative buy put out by broker StockAnalsis (who have never heard of before) advising that about 10c au in value is tied up in Tui, and about another 6c au in exploration = expect will rise to 15c au.
An exploration success could see 45c+ au.
Whilst they did not specify where the success could be, the targets are all in the companies reports.
Certainly hope Hector can be drilled in October, prior to 6 months of Tui development wells.
M
Sharp737 wrote
Barring a catastrophe, I also can't see PPP staying at these prices for too much longer. Perhaps another month or two at the most?
Kiwi Kev
Good call S737. You might like to change the month to day to be closer to the action starting. I do not have a clue of why just now but action with PPP is a very high likehood as you say coming up to the drills. Very high volumn in Aus yesterday so someone has plans.
I concur.
With PPPs share of Hector at 14% of a potential 50mmbo (AWE have a range of 40>100mmbo) this is possibly a $700M asset (assuming $60US barrel and xrate of 60cNZ) or gross revenue of $1.70 per share.
And this is without TUI!
Comparing investment in heads (@15c) or options(@7.2c)
Assuming .84 exchange rate
Heads @30/6/07..Options.........Heads
<15c............100% Loss.......Loss
15-18c..........100% Loss.......Profit
18-25c..........Loss............Profit
25-34c..........Profit..........Bigger profit
>34c............Bigger profit...Profit
Interesting...
The options bid is at 6.5c, at that level the options come into the money at 32cps.
Funny isn't it. No drilling until later this yr yet s/p heading north?Quote:
quote:Originally posted by digger
Sharp737 wrote
Barring a catastrophe, I also can't see PPP staying at these prices for too much longer. Perhaps another month or two at the most?
Kiwi Kev
Good call S737. You might like to change the month to day to be closer to the action starting. I do not have a clue of why just now but action with PPP is a very high likehood as you say coming up to the drills. Very high volumn in Aus yesterday so someone has plans.
I.T.A
Never seen such a load of drivel. Get an option model from goggle.
The options are in the money once they pass .15
They were free to the smart.
FRED
Maybe someone knows something that you dont.;)Quote:
quote:Originally posted by lambton
Funny isn't it. No drilling until later this yr yet s/p heading north?Quote:
quote:Originally posted by digger
Sharp737 wrote
Barring a catastrophe, I also can't see PPP staying at these prices for too much longer. Perhaps another month or two at the most?
Kiwi Kev
Good call S737. You might like to change the month to day to be closer to the action starting. I do not have a clue of why just now but action with PPP is a very high likehood as you say coming up to the drills. Very high volumn in Aus yesterday so someone has plans.
Now that's an interesting comment....
PPP have now got that new Middle East prospecting license now... something going on there?
Or is it a drill/development decision in Australia?
Or people just getting in early on the Tui development and upcoming Hector drilling?
Or something else?
Interesting eh.
Kiwi Kev
reason for increase in price and volume is as per the broker report of speculative buy recomendation as per my posting on the 7th
M
Yes, I think you are right M. But if the volumes stay high, I will have to wonder...
Kev
M
Re your post of 07/04. I guess this info will originate from www.stockanalysis.com.au, but I dont subscribe.
It was just a report in local newspaper as a broker tip and we just relayed the guts of it since people were wondering about the spike.Quote:
quote:Originally posted by soletrader
M
Re your post of 07/04. I guess this info will originate from www.stockanalysis.com.au, but I dont subscribe.
Had never heard of stockanalysis before.
As regards if the sp gain can be held onto - time will tell.
At least the quarterly report due on April 28, so that may sustain the gain
M
I see the US$32 million loan facility has just been announced after hours on the Oz. And share price was firming to 12.5/13 on the Oz...
This is good news and it's all on now :)
Have the costs for this project increased considerably?
I'm curious about the oppies needing a15c for conversion in 15 months.
To me it indicates substancial exploration success required later this year.
Wonder how likely that is?
Has anybody spoken to Tattersfield?
Don't know if costs have gone up. They were US$204 for the Tui development as of November 2005
http://www.panpacpetroleum.com.au/pd...ed_21Nov05.pdf
Around that time they should have had some cash + $3m + some $15m from the cash issue and placement = $18m or thereabouts. And they are going to need a bit of extra cash for the extra exploration drilling I'd say.
The extra prospects beside Tui look promising and Hector is the big wildcard for October all going well. As well as the Tui development which is getting better all the time as oil keeps going up and up.
And big brother New Zeanland Oil and Gas has done similar with the funding. Sounds like the FPSO leasing price has gone up? Wouldn't be surprised. They should have jumped in and bought that ship long ago :-)
http://www.nzog.net/news/2006/Tui%20...0Financing.pdf
There's the costs of the FPSO lease which is in addition to the capex of $US204M. Looks ok.
http://www.nzog.net/news/2006/NZOG_H...r_Dec_2005.pdf
What 5000 barrel a day means to PPP's share price in terms of earnings? What are your thoughts?
5000bbl (PPP's 10% share) per day is huge. Roughly by my calcs, US$32M Gross will be earned by PPP in 5 months.
Let's say it stabilised at 2000bbl per day later on (PPP's 10% share). That means about NZ$80M Gross (2000 x US70 x 1.6 (conversion to NZ$) x 360 days. Say of that, $NZ30M profit?
PPP has 433M shares with options yet to be exercised. Say we get up to 600M shares. Thats 5c earnings per share. PPP would have to be around 50c do you think? This is very rough calculations.
And if neighbouring prospects Tieke, Oi and slightly further out, Taranui and Taranui South strike oil and can be tied back into the Tui development, we have a much longer and ongoing production scenario. And does look quite likely. Not to mention the Hector prospect coming up. Probably in a year to 18 months time, we could be looking at 70c a share? More? :)
Sharp,
the Tui field is only worth Au10c to PPP based on what AWE paid when they bgt Transfields? share in Jan'06.Based on USD$50 bbl?
If the oil price say increases by $20 bbl then perhaps 15c to PPP.
You mustn't apply a PE ratio to an oil field (that in this case only has a short 50% life)
PPP is a simple equation.
Proven reserves in the ground= .15
Reserves extracted= .45
(cal. @45$ pbb and xrate.70)
As the risk window closes the price goes up.
Good to see they only had to hedge 250,000 barrels not 448,000 like NOG.
This is a little ripper of a company.
Reminds me of NOG at .33 cents a share.
FRED
I agree Fred. What people perhaps are forgetting is that PPP is going to have so much cash so very quickly. Not to mention the exercise of the options at the end of June 2007. Now what is PPP going to do with all that mounting cash?
Obviously, more exploration for a kick off. And yes, that's speculation alright. Big time. But the closer prospects to the Tui development must be a pretty good bet and being so close to Maui as well. Hector of course is high risk, but if it comes in, a mighty bonus and awesome.
BUT, I'll bet it won't be just more exploration that PPP would be into - they could look around for other projects that they could buy into easily. This could be the making of PPP. If they do the same as AWE and then we are going to have us one heck of a company.
But of course, we are only at the early stages and this is a lot of speculation. I am only looking on the extremely positive side so for those thinking of investing in PPP, do your own homework and YOU make the choice remembering the risks. Like I say, barring a worldwide catastrophe, investors in PPP could do very well. And we don't really want the US dropping a nuclear bomb on Iran as that could happen this year. Or any other country nuking anyone. Dangerous times we are in I think.
Old Owl posted this report back in August 2005
Pan Pacific to focus on NZ prospects
Neil Ritchie, New Zealand
Wednesday, August 24, 2005
DUAL-listed Pan Pacific Petroleum has reported an overall after-tax loss of A$3.99 million for the June year and says it is now concentrating on its oil discoveries in the Taranaki Basin, New Zealand. It has now exited from the almost defunct Tubridgi gas field off Western Australia.
The Sydney-headquartered company told the ASX and NZX yesterday that its A$3,995,000 loss included a full year of revenues and costs from its former interest in the Tubridgi gas field as proceeds from that sale were not received until after the end of the financial year (July 4).
Exploration write-offs during the period were A$2,798,000, mainly related to drilling the unsuccessful Kiwi exploration well in offshore Taranaki licence PEP 38460 and accumulated costs of drilling and evaluating the offshore Western Australian Taunton prospect.
Following the drilling of Blackthorne-1, the TL2 joint venture concluded a Taunton development would be a commercially marginal project, though future development might still be possible if further nearby discoveries were made.
Pan Pacific, which holds a 10% stake in the Tui Area (Tui-Amokura-Pateke) oil discoveries elsewhere in PEP 38460, said a final investment decision on development of these was scheduled for late October.
FID by that date would lead to first oil production in early 2007, with initial flows expected to exceed 30,000 barrels of oil per day (bopd). Rapid payback of the investment in the Tui development was supported by an oil price of only US$35 per barrel (currently US$65).
In addition to the Tui development wells, two exploration wells were proposed for adjacent prospects, which if successful could be tied into the initial development.
Candidates included Tieke, Oi, Matuku, Taranui, and Kahu - with Tieke (updip from Tui and having unrisked potential for 25 million barrels at the Eocene-aged Kapuni F sands) and Taranui (40 million barrels at the F sands) the most likely.
Also interpretation of 2D seismic data acquired over the Hector prospects in nearby PEP38483 (Pan Pacific Petroleum 14.9% interest) was expected to lead to a drilling decision on that acreage before the end of 2005. The Hector area was considered highly prospective, due to favourable reservoir development in the Kapuni F sands and proximity to the hydrocarbon "kitchen" sourcing those reservoir sands.
In the Carnarvon basin several exploration prospects, including Bricklanding in TP7 (PPP 4.16%), were being reviewed as possible drilling candidates.
Several prospects wree being evaluated from recent seismic reprocessing in WA254P (PPP 2.99%). Of these, the Duomonte prospect was a candidate for drilling in late 2005.
Tui field gets funding as oil price surge helps viability
24 April 2006
By SIMON LOUISSON
Pan Pacific Petroleum said today it had secured up to $US32 million ($NZ51m) in funding for its share of the development costs of the Tui oil field offshore from Taranaki.
Commonwealth Bank of Australia is providing PPP the debt facility.
PPP, listed in New Zealand and Australia, owns 10 per cent of the field that includes Tui, Amokura and Pateke.
New Zealand Oil & Gas owns 12.5 per cent of Tui and Japan's Mitsui E&P owns 12.5 per cent while the biggest stake, 42.5 per cent, was bought by Australia Worldwide Exploration (AWE) from Texas-based New Zealand Overseas Petroleum earlier this year.
Production development costs are expected to run to $US300-350 million ($NZ475-550m) including $US100m for the Floating Production Storage and Offloading (FPSO) vessel used for storage and production.
PPP director Allan Tattersfield said that soaring crude prices had greatly assisted the economics of the development but that could improve further if planned new exploration wells hit oil.
Tui was considered viable at $US30 a barrel, so with the price of oil above US70, it looks decided healthy.
AdvertisementAdvertisement"Obviously the kiwi dollar has gone down a bit and oil price has gone up and looks pretty strong," Mr Tattersfield said. Because the field is 40km offshore in relatively deep water, it was a high risk project at exploration stage.
"The lenders take a very conservative view, so do the companies investing. No one knows what the oil price will be in 12 months' time when hopefully we will be close to production."
The three fields are estimated to contain 60 million barrels of oil with 28-30 million recoverable. At $US70 a barrel that would yield around $US2 billion before costs.
PPP has acquired an initial tranche of put options over the first 250,000 of its share of initial production at $US50/barrel.
NZOG has signed up to use the Ocean Patriot semi-submersible rig to drill three of its offshore Taranaki oil prospects as well as drilling four development wells for the Tui fields.
Upon completion of the Tui wells, the Ocean Patriot rig will move several kilometres to drill the Tieke and Taranui oil prospects within the Tui PMP 38158 area.
"Hopefully, if we find something there it will alter the prospects of the Tui field significantly and get a much longer life at it with nominal additional capital costs – that's the exciting part," said Mr Tattersfield.
The partners are optimistic.
"There is a strong likelihood that there is at least one other field there that we will tap into with the drilling rig after we have finished the production wells of Tui."
He said historically, a large gas field such as the nearby Maui field, will have equally large oil fields nearby and to date only small fields had been discovered.
"We have found the gas field but we haven't found any significant oil.
"If we find some additional oil close by – that's between Tui and Maui – this will alter the economics of the project significantly because we will have the infrastructure in place."
The FPSO – an old tanker that had been parked offshore of Vietnam, currently being transformed in Singapore with a boatload of sophisticated equipment – has been designed to handle more production than Tui currently contains.
Mr Tattersfield said AWE principal Bruce Phillips had long expressed confidence in New Zealand exploration. As well, Transworld had demonstrated its confidence by accepting shares in AWE for its New Zealand Exploration stake and was now AWE's largest shareholder with 10 per cent.
"That's quite a good sign of confidence in the project because it shows Transworld still wants to stay with the project at least in the short-to medium term," said Mr Tattersfield.
AWE had grown from a smallish explorer to be capitalised at over $A1.2 billion ($NZ1.4 billion).
Mr Tattersfield said Tui had a big advantage in that its production would come on stream very quickly, w
Interesting that the options haven't run as hard as the ords; still below their all time high, expect some catch up soon?
5000 barrels is a lot for a junior.
Watch it fly seriously on the sniff of more oil.
FRED
I did. (http://www.hoadley.net/options/optiongraphs.aspx)Quote:
quote:Originally posted by FRED
Get an option model from goggle.
According to the model, shouldn't the option price be rather in the
2 cent area, and is the actual option price therefore too high?
Or, (asking as an 'option novice'), why would the options have
any value at all, if the strike price is greater than the actual
price?
On you.
The option model will have a volatility level. Default maybe 30...20. Move that upto the real level of 70 plus and recalculate.
FRED
Option valuation formula's calculate 'fair value'. This can be important to you if you are a shareholder of an entity which owns options or a shareholder of an entity which has issued options and is subject to takeover. However, fair value of options has as much relevance to their market value as does the fair value of a company to it's share price. i.e. not much. Some market participants will calculate fair value to determine if a share can be considered cheap or expensive, but there is much more to market value than that. If you buy or hold PPP options today, you are betting that PPP heads will be trading at NZD.29 or greater on 30/6/07. This could be a very good bet, but like LOTTO players many participants like to play without understanding the odds.
Or, (asking as an 'option novice'), why would the options have any value at all, if the strike price is greater than the actual price?
Imagine if you could buy the options at 1c today. If the heads were trading at NZD.19 at 30/6/07 you would make a profit. If the heads were trading at .29 you would get a tenfold return. Fabulous leaverage - which is why the options are trading at a higher price than that.
Um?Quote:
quote:Originally posted by I.T.Ancient
Or, (asking as an 'option novice'), why would the options have any value at all, if the strike price is greater than the actual price?
Imagine if you could buy the options at 1c today. If the heads were trading at NZD.19 at 30/6/07 you would make a profit. If the heads were trading at .29 you would get a tenfold return. Fabulous leaverage - which is why the options are trading at a higher price than that.
HUH!?? wot maths skool did you go to Panike? .29c sure weren't 10 X {1+15}wen I wnt to school? But nearly X 2 is still OK.Quote:
quote:Originally posted by I.T.Ancient
Imagine if you could buy the options at 1c today. If the heads were trading at NZD.19 at 30/6/07 you would make a profit. If the heads were trading at .29 you would get a tenfold return. Fabulous leaverage - which is why the options are trading at a higher price than that.
:)
Let's just use AUD and ignore opportunity costs for the moment to avoid confusion. If you bought an option for 1c and the heads are trading at 25c on strike day, then the same day you spend 15c you can take 25c out by selling at market. Investment 1c return 10c.
Um??Quote:
quote:Originally posted by I.T.Ancient
Let's just use AUD and ignore opportunity costs for the moment to avoid confusion. If you bought an option for 1c and the heads are trading at 25c on strike day, then the same day you spend 15c you can take 25c out by selling at market. Investment 1c return 10c.
Have you ever finnished primary school?
1c + 15c =16c
Your 'current price' = 25c less exercised option costs = 9c.
Then 9c represents profit of 56.25% on your effort (16c) selling 'heads' at market.