QPN - Quest Petroleum

[Joe Blow]

Quest Petroleum (QPN) was previously known as Nuenco (NEO). All discussion of this company will now continue in this thread.

For discussion of Quest Petroleum when it was known as Nuenco, please refer to the NEO thread: http://www.aussiestockforums.com/for...read.php?t=416

[Bluebeard]

Today I had a look at this stock. Noticed some big orders and purchased some just for the fun of it. Still when you see the sales today - for me it is worth a small speculative punt which I took. The stock also seems to have a massive support level at 0.007 per share. Current price is at 0.009. There is also a massive disparity between buyer and seller depth.

[mobcat]

Hi guys sure looks interesting QPN i see some body bought $100k worth on close Friday i think i might join the crew on Monday this one seems wayyyy over sold ATM with what it has in store in the ST.

Transerv’s current share price is underpinned by an ongoing 10% interest in tight gas development at Warro, where Alcoa is funding field evaluation. Participation in the Amazon prospect holds speculative appeal. Success would underpin ongoing
cash requirements and would add significantly to its assessed value.

During a hiatus in drilling activity at its 10% held Warro tight gas field in the Perth Basin, Transerv has used its corporate connections with Quest Petroleum, combined
with a flow of new equity funds from the exercise of options, to take a 5% interest in the drilling of two, relatively moderate risk prospects on the Louisiana Gulf Coast to be drilled over the next 6 months. The larger Amazon prospect is expected to spud in October and is likely to take six weeks to drill to a total depth of 4,880 metres, testing several thick horizons of over-pressured sediments within an interpreted tilted fault
block structure where strong seismic AVO anomalism supports a case for discovery of gas at depth.

Amazon is estimated to be capable of holding 45 mmbbls of oil/condensate plus 450 Bcf of gas if hydrocarbons are present and discovery at this level would be worth 9 cps to Transerv for its 5% interest, while Quest would see a 20 cps uplift for its retained 15% and Tango would also have strong leverage of $1.81 per share for its 17.5% in the project.

The smaller Thames structure is situated on the flank of a salt feature and shows multiple layers of targets, again with seismic AVO anomalism supporting the case for
drilling. The Amazon wildcat is budgeted to cost US$8.2 million and TSV will be paying for 9% to earn its 5% equity. Partners give Amazon a 35% probability of success, which makes it moderate risk.

All ASX listed partners here have strong leverage to success on these relatively large targets. Key risks include the normal exploration type of risks and also an engineering risk, associated with drilling in highly over-pressured sediments.

Transerv has taken the stance that this is an achievable target and while there is no current need to spend funds on Warro, this opportunity is worth the risk and if successful could underpin the establishment of a sustaining cash flow to Transerv, which would reduce the need for ongoing new equity issues.

Others along the Gulf Coast, including Strike Energy, Golden Gate Resources and Grand Gulf have largely not met expectations from well-formulated, good looking prospects, which failed to deliver, so caution is always necessary in such speculative ventures.

TSV - Capital Structure
Shares 882.4 m.
Options 87.5 m.
Total 969.9 m.
Price 0.013 $
Market Cap 11.5 $ m.
Cash (est) 2.0 $ m.

Well oil gas Risk NPV NPV Cost
mmbbls Bcf % $m oil gas /BOE US$
Amazon 45 450 20% 1755 22 1.7 14.6 $ 8.0 $
Thames 6 57 20% 223 22 1.6 14.4 $ 5.0 $
Source: Strachan Corporate

Permits TSV QPN TNP
Amazon 5% 15% 17.5%
Thames 5% 15% 17.5%
Discovery Value/share $ TSV QPN TNP
Amazon 0.09 0.20 1.81
Thames 0.01 0.03 0.23
Risk Adjusted Value/Share 0.019 $ 0.042$ 0.38 $
Leverage/share TSV QPN TNP
Amazon 646% 1647% 1390%
Thames 82% 210% 177%
Combined 728% 1857% 1566%

[mobcat]

Nice Vol today with a .1 increase in SP i took on more oppies today QNPO, with the spec pressure building now in QNP as we approach SPUD date wouldnt be surprised to see a very high Vol day very soon the sell depth is very thin relative to shares on offer by the looks the PASS holders have left the building

[mobcat]

Amazon and Thames . large, high impact oil and gas targets

# The combined potential of these targets is between 450 to 650 billion cubic feet of gas and 45 to 65 million barrels of oil, generated from proprietary 3D seismic over proven play types with nearby analogue discoveries. Quest is acquiring a free carried 7.5% working interest in both prospects in consideration of the issue of 180 million fully paid ordinary shares. Quest will be free carried through all drilling costs to total depth in the first Amazon well, and Quest retains a right to acquire a further 2.5% working interest in the Amazon
prospect area at casing point for US$450,000. Quest will be liable to pay its share of any completion costs, estimated at US$170,000 for this well.
# Quest will also be free carried at 7.5% in the first well drilled upon the Thames project should that well proceed as currently planned.
# The Amazon and Thames prospects are part of a regional exploration project in south Louisiana. Approximately 1,000 square miles of proprietary reprocessed Seitel data has been completed with integrated key well and production data obtained. Over 20 leads and prospects have been identified in proven plays and new play fairways.
# The Amazon prospect is a large scale, hanging wall fold with nearly 2,000 acres in fault dependent closure including a 400 acre faulted four?]way closure. The prospective reservoir interval is Oligocene sands which appear seismically very thick. Amazon has good AVO and Fluid Factor support.
# Amazon has estimated gross recoverable reserve potential of 350 to 500 billion cubic feet of natural gas and 35 to 50 million barrels of oil. Leasing of the prospect area is nearly complete and final well planning is currently underway. A 16,000 ft exploration test of this multi?]segment prospect is expected to spud late in July 2010. The well cost to target depth is estimated at US$5.5m. The test well will drill through the Oligocene target sands between 14,000 ft and 16,000 ft where it is expected to encounter reservoir pressure in the order of 11,000 psi.
# The Thames Prospect covers an estimated area of 1,200 acres with an estimated gross recoverable reserve potential of 100 to 150 billion cubic feet of natural gas and 10 to 15 million barrels of oil. It is currently proposed to drill a 16,000 ft exploration test well of this multi?]segment prospect on the flank of a vertical
salt weld. The Thames prospect has stacked objectives in a fault bound block with one larger, deeper objective target interval providing large volume upside. The prospective reservoir interval is Oligocene ponded basin floor fan. The prospect has good AVO support. The Thames well is expected to spud in the fourth quarter of 2010.

[mobcat]

And it just keeps getting better for QPN holders


Quest Petroleum NL has entered into heads of agreement to subscribe for 6.2 million shares, represented 14.5%, of the issued capital in Merric Capital Pty Ltd worth of US$310,000. The final agreement is to be executed in next month.

Merric is a private Australian company that has for the past 2 years has focused on developing an oil and gas exploration and production business in Indonesia. Merric claimed that it has an experienced oil and gas executive team, led by Saxon Palmer.

Merric owns 80% on Prabu Energy Pty Ltd, which was recently awarded a joint study license covering the RanauProject Area, South Sumatera. The remaining 20% is owned by private Indonesian company. Prabu Energy retains the right of first refusal for the grant of a Production Sharing Contract (PSC) on this area upon completion of initial work programs.

The Ranau Project Area covers 2,123km square in onshore South Sumatera and is close to existing producing areas and is thought to contain similar hydrocarbon reservoirs/plays/traps to these production projects. The Ranau joint study provides for an exclusive technical study to be completed and will run for 7 months.

Quest required to establish a bank guarantee to support performance of the joint study and in consideration Quest will be issued a further 6.2m options in Merric exercisable at 5 cent on or before 30 June 2012. The exercise of these options will result in Quest holding a 25% interest in Merric.

[adobee]

Spud date announced.. I would expect this will move substanially prior to spud ? Say 1.9c.. If they come up trumps could run really well.. if they dont.. then same old story...

[mobcat]

Looking good hey Adobee we could be in for a very happy Chrissy holding QPN it,s a P35 on a Elephant feild so Dec sure could be 2 cent ground no doubt when the drill starts spinning

[adobee]

I am hoping for 2-2.2c before spud and then if they come up trumps anything is possible.. will continue to hold and see...

Liking this one alot more than some of the other explorers and small market cap..

[adobee]

Definetly worth checking out todays announcement & information -
"Big Exploration Play" .. Spud lined up.. looks like a good opportunity to get on board before and get a potential free ride as the interest builds pre spud ..

[mobcat]

Worth a read big month ahead IMO

http://www.qpnl.com.au/images/storie...gulf_coast.pdf

[gsnz1]

drilling to start on Dec 18 using Nabors Drilling Rig

http://www.proactiveinvestors.com/co...ana-10672.html

getting close now

[adobee]

shame about the recent cap raising but i guess it is standard they want to get some extra cash in now rather than after in case things dont go to well..

[adobee]

Definetly worth taking note now.. the buyer activity is turning and this looks like it is ready to break out .... I am going to jump on a few more today and try to get a free carry by the time they actually spud.. Good drillers lined up and a very prospective area... COULD be my second win in the ASF tipping comp if things go well...

[adobee]

http://www.qpnl.com.au/images/storie...gulf_coast.pdf

Broker val at 4.6c

[newbie trader]

Bought into QPN on Thursday. Will most likely sell before TD. How accurate do you think the recommendation of 4.6c is?

[adobee]

Bought into QPN on Thursday. Will most likely sell before TD. How accurate do you think the recommendation of 4.6c is?

not that accurate but probably more accurate than me putting a price target on it, there is another broker report around 14c.. ... but if they come up trumps on the drill 4.6c will be smashed.. if they dont then it will be a fizzer .. before the spud it will by a roller coaster ride.. Good Luck to holders... I am hoping for 2.3c before spud so I can offload some and reduce the risk ..

[sagitar]

Hi Adobee, unfortunately as we all know the spud date was delayed until mid-January. Good thing is that mid-Jan is now just around the corner - by next week will be mid Jan or otherwise 8 more trading days. A poster on another thread stated they spoke to the owners of the rig which is apparently now down in Louisiana. I suspect pre-spud fever is close at hand, along with an anticipated uplift in the share price.

[adobee]

I have heard they will spud this weekend and annouce spud taken place later in the week (could be rubbish) but its whats being said... hopefully we see some interest in it from there on ... Totally different story but BKP runnig well up to spud..

[adobee]

The ASX listed partners in the Amazon prospect, Tango Petroleum Ltd (ASX:TNP), Quest Petroleum NL (ASX:QPN) and Transerv Energy Ltd (ASX:TSV), are pleased to confirm that the Marian Baker #1 well commenced drilling on Sunday, 16 January, which is the initial test well on the large Amazon Prospect.Amazon is regarded by the Operator, Caza Oil and Gas, Inc. (TSX: CAZ) (AIM: CAZA), to be a multi-segment prospect, with prospective reservoirs supported by AVO data within a proven play fairway. The Marian Baker #1 well is expected to encounter multiple, potential, hydrocarbon bearing reservoir sections and take approximately 50 days to reach total depth. The Amazon prospect is a large exploration target assessed by independent consultants ISIS Petroleum to have a 35% probability of success. The Amazon Prospect has an estimated mean recoverable potential of 375 billion cubic feet of natural gas and 37 million barrels of oil.


Lets hope we start seeing some interest this week...