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junior oilers 1 dec part 2

  1. jocam9

    1,317 Posts.

    Herewith my take on some of the oilers I follow:
    AWE

    AWE has risen from a November low of 68 cents to an intra day high of 90 on Wednesday. It closed at 89 cents on Friday up a cent from the previous day’s close. Volume was slightly ahead of the previous week. According to one poster this was the first time AWE had closed the week ahead of its RSI. I am not sure what this means but take it as a positive. The news for the week was that Mitsui had farmed in to Yolla and White Ibis providing a useful cash injection to AWE and signalling confidence in the viability of BassGas. The market obviously thought this a positive development. I am holding AWE for a run up to $1.00 ahead of the Perth Basin drilling. I expect there to be increased media attention in the Perth Basin stocks in coming weeks (apparently there was an article on AWE in AFR this weekend) and that, as an entry, AWE should be rated ahead of some of its more speculative partners.

    CUE

    Big volume in CUE this week 32 million shares traded against 5.4 million the previous week and 1.2 million the week before that. Share price fell on Friday on news that CUE would not be participating in the drilling of the deeper targets at Bilip. It retained the right to buy back into these targets at a premium if they proved successful. Otherwise it would stay just with its interest in the 30 metre oil column already discovered. Jury is out on the commerciality of Bilip which is probably also why the sps have fallen. I won’t get back into CUE until this is clarified. Bad news from Bilip and a further weakening in CUE would represent a good buying opportunity.

    Northwest

    Announcement of another capital raising (SPP at 8 cents) pushed the share price down on Thursday and will probably put a cap on the sps for a while. Have to agree with Alistair though that this has proven to be a good trading stock in the past and should prove to be so again in the run up to the drilling of Cliff Head, Twin Lions etc. I will hold with a price target of 12 cents pre drill. It could do better than that with a bit of media attention and/or positive broker research reports.


    NZO and PPP

    Another SPP, this time from NZO to finance Tui drilling, has kept stock in low 30’s. Better liquidity on the New Zealand bourse for this one. NZO would benefit from a favorable NZ government decision on the Pike River Coking Coal project or a decision to develop Kupe. Has good revenue flow from Ngatoro oil field . PPP has already had a good run on strength of Carnarvon drilling program and announcement of Tui drilling in the New Year. PPP is up from 9 cents early in November to close at 12.5 cents on Friday. Still potential upside in both of these ahead of Tui. PPP has cash in the bank ($7.4 million end Sept) but like NZO may decide to seek further capital to finance its share of the drill. Next PPP wells in the Carnarvon Basin are Immortelle (PPP 4.16% and Taunton 2, PPP 10%). I’ll watch PPP for a buying opportunity on any weakness either as a result of a capital raising or drilling disappointment.

    Petsec (PSA)

    Still doing nothing and closed at a week’s low of 24 cents on Friday. I suspect lack of interest is due to absence of any recent news in the market. Can’t see this situation changing for the time being though I have high hopes for PSA in the New Year when market sees the revenue starting to flow from West Cameron and Ship Shoal.

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