junior oilers...... full version

  1. 1,317 Posts.
    We should get some info in the next few weeks about spud dates for the Cliff Head appraisal. Almost all the stocks involved in the upcoming Perth Basin drilling have strengthened in recent weeks (BUY seems to be the only exception) and I would expect that trend to continue. An announcement of the drilling dates would IMO kick them along a bit more. Difficult to tell when this will happen but keep an eye on the Ensco web site. The rig to be used for the drilling is the Ensco 53 currently in Singapore. I am hoping the web site will indicate when it is on the way to Perth.

    Then there are some AGMs coming up including HDR and I think HDR also has some road shows planned for early December. Press releases on Chinguetti reserves and planned future drilling program will no doubt impact on the market’s perception of the stock. And judging by the action in HDR towards the end of last week that reaction could be positive. HDR also involved in Perth Basin.

    I would welcome other’s views on likely press releases from junior oilers they follow.

    Just to finish off this post, herewith my take on some of the price action on individual stocks this past week :

    AWE. Volume almost doubled from previous week with price rising from 80 cents to 84 cents after hitting 87 cents mid week. Some profit taking towards the end of the week as stock has run quite hard in recent two weeks. Euroz Securities has put out a positive broker report on the stock similar to Carmichael’s of 4 November. Looks like heading to $1 as Perth Basin drilling nears.

    NWE Stock also strengthened during the week. Black Rock appears to have sold all its 12 million shares (most in an off market placement?) so only overhang is 25 million shares issued in recent placement. I would think most who got shares in that placement are in for the longer haul so expect NWE to continue to strengthen.

    BPT took a slight hit during the week on announcement it intended to float off its gold assets but recovered well towards end of the week. Bonus options listed on Thursday with first and only trades at 5 cents. November 21 was cut off date for half cent dividend. BPT only junior oiler now paying a dividend, a policy company said it would continue. Interesting drilling program coming up which will be financed from cash flow. I would expect a press release at some stage on appraisal drilling of Sellicks. BPT looks good for the longer term.

    DLS AGM in Sydney this week. Only traded on one day Tuesday and that was when it announced some more drilling of its Tintaburra assets. Company seems a bit short on funds to me though capital raising I have been expecting has not yet materialsied.

    BUY thinly trade on falling price. Looks like it needs a capital injection.

    CUE good volume on announcement of Bilip hydrocarbons. Whatever happened to the U seller??? CUE finished up for the week at 6 cents. Bilip looks too “iffy” for me but I do like the stock and how it has been turned around by current management. News on Oyong has been encouraging but political situation in Indonesia continues to be a concern.

    PSA manages to find support around 25 cents. Petsec was Quentin Cameron’s stock pick of the week this week. One of my favorites given the 25 bcf of gas at West Cameron which comes into production in January. Short time it takes to bring GOM discoveries into production and high prices for gas is one of attractions of involvement in the Gulf. PSA should receive first Ship Shoal revenues in December. Company now a bit backward in promoting its successes probably burned a bit form overdoing it in the past. Should be a lot stronger in three to six months. Company looking to farmout its other GOM leases or drill where engineering is uncomplicated.

    ARQ continues to strengthen ahead of announcement of the results of appraisal drilling at Hovea and imminent Perth Basin drilling. Also a takeover target.

    AYO can’t seem to make it past 50 cents but did try during the week. Announcements of further gas sales would help.

    That’s it from me. Have a prosperous week all.

    Disclosure: I hold AWE, BPTOA, CVN, NWE, PCL, PSA, FAR…………….. JBC

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