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HOG - Hawkley Oil and Gas

Discussion in 'Stocks 0-H' started by System, Sep 12, 2010.

  1. System

    System Administrator

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    Hawkley Oil and Gas Limited (HOG) is an oil and gas development company with 100 per cent owned assets in the Dnieper-Donets Basin, the most prolific gas basin in Ukraine.

    The Company made its debut on the ASX on 29 June 2010 following completion of a reverse takeover of the former biotechnology company Incitive Limited (ICV) and a successful $5.5 million capital raising.

    http://www.hawkleyoilandgas.com
     
  2. prgudula

    prgudula Well-Known Member

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    Wiseowl report

    28 Jun 2010

    http://www.hawkleyoilandgas.com//me...-Wiseowl-report-38/Wiseowl-Hawkley-report.pdf

    Moyes report

    5 Jun 2010

    The Moyes report is an independent evaluation of the potential resources of Hawkley OIl & Gas Limited's two fields and an independent review of the possible development scenarios. The report includes a review, audit and assessment of the two fields, a review of the existing and planned infrastructure, generic development scenarios and a mid-point estimate of current project recoverables.

    http://www.hawkleyoilandgas.com//me...0805-Moyes-report-46/Moyes-Report-Hawkley.pdf
     
  3. basilio

    basilio Well-Known Member

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    Hawkleys have found excellent oil and gas in the Ukraine and the financial returns look very promising. Already doubled to 29 cents since early November with further exploration in the New Year.
    http://www.theage.com.au/business/h...est-for-a-junior-in-years-20101128-18cbl.html

    Hawkley has released it's projections to the market this morning.
     
  4. basilio

    basilio Well-Known Member

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    Will pigs fly ?

    The financial analysis from HOG’s oil and gas strike in the Ukraine is excellent for any company let alone a recent start up currently valued at $39m with just 136 million shares on issue. HOG’s current SP is 28c . .

    HOG’s figures on the current well indicate a gross revenue of around $51m a year as a midrange estimate. Final earnings after all costs and tax would be $20-22m a year. That’s 37c a share gross revenue and 16c a share net. The strike is the middle of a highly developed oil and gas precinct with a new gas plant only 7 klms away. The pipeline to the gas plant is currently being built and cash should flow early in the new year.

    And there is a second asset that also appears to be equally profitable. I think this pig will fly....:D:D:D:D

    http://www.hawkleyoilandgas.com/display/index/assets

    http://www.hawkleyoilandgas.com/med...201-range-of-estimated-financial-outcomes.pdf

    ___________________________________________________

    DYOR and I do hold.
     
  5. ParleVouFrancois

    ParleVouFrancois Well-Known Member

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    Nice to see someone else is interested in HOG :), I bought in yesterday with the view to hold until at least the next well is brought online, with the massive cashflow from their first well, the rest of the wells can be paid for/secured with loans via the cashflow. So it's most probable that we'll see little to no dilution from here, which is brilliant news for a junior oiler (even quality like SEA and AUT have had to do capital raisings recently).

    :2twocents
     
  6. Lionel

    Lionel New Member

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    Also hold for the free cash flow. Their drilling programme appears fairly prospective.
     
  7. basilio

    basilio Well-Known Member

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    Another excellent update from HOG. The oil and gas flows from the first well are even better than indicated previously. This would suggest around $55-60m a year gross returns from this well alone.

    The company is looking at drilling a second well in the same field with,one would expect, a similar result. They are also re-examining the total reserves with the expectation these will be upgraded. Production appears to be only a few weeks away with the gas pipeline almost completed.

    And it's still valued at around $42m !! Crazy stuff

    http://newsstore.fairfax.com.au/app...e.ac?code=HOG&submit=Go&section=summary&f=pdf
     
  8. jonojpsg

    jonojpsg Well-Known Member

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    Just wanted to say a BIG thanks to the posters who brought this to our attention:)

    This is one of those hidden gems that, over the last four years since I joined ASF, I have come to appreciate...really we should have a common fund administered by Joe that we all chip in to that..I don't know what it could do - any suggestions?? - as part of the benefits that we all accrue from the combined research and efforts of the ASF community.

    Sorry about the waffle, just feeling magnanimous, haven't even made much off HOG yet, but can see how big it is likely to get!!
     
  9. ParleVouFrancois

    ParleVouFrancois Well-Known Member

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    The writing was on the wall, you could've bought in ALL morning and be sitting on a nice buffer (luckily I stumbled upon this, bought in about 30 minutes before the big announcement :D). The announcement today gives even higher production figures from their initial well, along with an update on the 9km pipeline, with 7km (2km complete as of last announcement) complete I believe it'd be connected up and HOG will be getting cashflow either very late this year or very early next year (late christmas present in early jan?).

    :2twocents
     
  10. basilio

    basilio Well-Known Member

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    Another decent jump with the flying pig after yesterdays announcements,. Up 10% to 33c.

    _________________________________________________________

    Correction to earlier posts.

    When I was calculating the current value of Hawkley Oil and gas and therefore potential returns I was using the number of shares listed on the stock exchange as a basis for my calculations.

    Since then I've discovered there are a further 72 million fully paid shares in escrow for 24 months and another 33 million performance shares not on the official ASX register as well as about 14m options.

    These will obviously have a material and diluting effect on projected returns.

    Still looks very good:):)
     
  11. jonojpsg

    jonojpsg Well-Known Member

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    Noted that HOG appeared in Pennies from heaven thread as a 3000% gain from 0.5c a share not long back:eek:

    Hate it when I miss out on the first 3000% gain:banghead:

    Will just have to put up with 300%:rolleyes: (which for those in at 0.5c would be 9000%!!!!
     
  12. ParleVouFrancois

    ParleVouFrancois Well-Known Member

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    It never actually traded at $0.005 jono, the journalist didn't bother to check the history of HOG. It was formed via a reverse takeover of some bunk biomed stock, hence the 0.05 share price. I doubt the holders of the old biomed share got many if any shares in the HOG company after it relisted.

    PVF.
     
  13. jonojpsg

    jonojpsg Well-Known Member

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    Ah, thanks PVF, makes me feel a bit better:) Looking forward to some serious rerating of this once production kicks off;)
     
  14. MBirrell

    MBirrell New Member

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    HOG - HAWKLEY FPO

    Hi all,

    I am interested in hearing opinions on HOG. From the stats and news this company is heading for good returns in early 2011.
     
  15. Dinipants

    Dinipants Member

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    Re: HOG - HAWKLEY FPO

    There's already a thread for HOG btw, just search 'HOG' and it'll come up :).
     
  16. WRONG'UN

    WRONG'UN Well-Known Member

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  17. MBirrell

    MBirrell New Member

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    So am I - I have invested a lot into this stock.:)
     
  18. ParleVouFrancois

    ParleVouFrancois Well-Known Member

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    That all being said, never invest more than you can afford to lose in a speculative stock such as this. It will be derisked as production comes online and sales begin to flow to the balance sheet, but as always with small companies such as this the risk is up to a 100% loss. I've been reading the NMS thread on HC (having traded in and out of them a few times before they died) and it's heartbreaking reading how people have lost their life's savings in shares. I'm looking for the rerating with my somewhat outsized position, to then get a decent free carry position going. Never ever get so heavy in a single speculative share that you can't afford to lose it all, just reminding you MBirrell. Now, where's that connection announcement! :D

    PVF.
     
  19. MBirrell

    MBirrell New Member

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    I am only investing my "play" money. At worst it will only make me sad :( - I haven't borrowed or put myself at any financial risk. It is good of you to reaffirm it though.
     
  20. basilio

    basilio Well-Known Member

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    Curious to see HOG release a policy document on insider trading for it's staff.

    Fact is of course that HOG has already made it clear that they are in the middle of a substantial up revision on the size of the current oil reserves. On memory the initial analysis of HOG's first well used previous production figures from the original well in the field. They came up with a share value of 57c I think.

    Currently the field appears to producing at 3 times that rate with further improvements also indicated. The price of oil has also risen by at least 15% since the initial report.

    On that basis one would expect at least a three fold increase in value. Since these are public figures then any increase in HOG shares prior to release of the official documents could be explained by these earlier statements. Would certainly let any interested parties off the hook.

    I think it will be very interesting to see how HOG behaves in the Christmas /New year trade period.;)
     
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