BNL - Blue Star Helium

[rub92me]

Hey Rub, did you follow your trading plan and get out? Can't believe the price of this today. For a stock that was hyped to be going to $2 a year ago - seems very disappointing. Been wondering whether to re-enter at low 20's level - surely it is going to have a decent oil/gas hit somewhere sometime somehow......?

Got out at 0.33; current price doesn't surprise - Rowena Wilcox was the last big rabbit they had in the hat, and it doesn't look like it will come out at the moment. Still a chance it will work out I suppose, but if it doesn't then they will need more financing down the line.

 

[jtb]

Got out at 0.33; current price doesn't surprise - Rowena Wilcox was the last big rabbit they had in the hat, and it doesn't look like it will come out at the moment. Still a chance it will work out I suppose, but if it doesn't then they will need more financing down the line.

Hey rub,

You still watching this?
Scribbled this down last Fri' to chase up @ 5.5c and see it touched 9.3c today?

Cheers

J

 

[rub92me]

Yep it's still on the watchlist. Today's move came out of nowhere. Maybe some director buying to inspire the punters . I liked the no nonsense description about their disastrous performance and the steps they have taken to reduce costs and get things back on the rails. But they really need some more explorations success soon to save them.

 

[brettc4]

AZZ Is currently in a trading halt pending the release of a drilling report.
Any expectations of whether this will be good or bad news?
The share prices is leading towards good news.

This leads to me second question, these people bidding up the price, de they have information others do not, or are they simply getting themselves into the queue with the hope it is good news, and will cancel their orders is the news isn't good?

Thanks,
Brett

 

[rub92me]

The share price spiked just before the trading halt, so possible that someone knew something was about to happen. Imo the pre-open bids are just hopeful punters, and yes, they will disappear like snow if the news isn't good. AZZ have had rotten luck in the past, so I hope for the faithful holders that the news is good this time.

 

[Agentm]

the board changes and the announcement look good to me. a bit of blood on the board room floor perhaps??

i think there is good reasons to be optimistic obout the future, i follow theis share but have not invested, but i think the wharton well stands up as a good well and i hope the shareholders get some positive push from this point on..

best of luck..

 

[Wysiwyg]

I bought in on the 400 bbl/d and .5 mmcg/d (75% w.i. AZZ) Harrison prospect and confirmed gas in the present well being drilled at West Wharton.
Looks like everyone can`t wait to get out.
I don`t use this angry smily much but here goes ..
Ahhh, that`s better.








.

 

[ns944jp]

(1)Oilpatch gears up for a comeback
Jon Harding, Calgary Herald
Published: Wednesday, May 21, 2008

Oil rose to set a record near $130 a barrel Tuesday, with influential American energy investor Boone Pickens reasserting an earlier prediction that prices are heading to $150 US a barrel.

Pickens, the billionaire chairman of Dallas-based BP Capital LLC, said in a television interview that producers are "running out of oil."

Investment banks Societe Generale and Credit Suisse raised their oil price forecasts for this year by $14 to $115 a barrel and by $29 to $120, respectively. Last week Goldman Sachs predicted oil prices would average $141 in the second half of this year.

Natural gas prices are rising, too. On the New York Mercantile Exchange, the fuel used for heating and power generation settled 41 cents US higher at $11.36 US per million British thermal units. Prices are up almost 50 per cent since January.

(2)Natural Gas Weekly Update
Released: May 22, 2008
Next Release: May 29, 2008
estimated average wellhead price
price( price/Mcf) Apr 08 US$8.93


we can expect roughly
400 bbls of oil/day
400 x $130 x 365days = US$18980000/year for sale

550 Mcf/d gas
550 x $8.93 x 365 = US$1792697.5/year for sale

total roughly US$20772697 for sale from Oyster Creek Project

 

[Wysiwyg]

The way i see it is in order to make this trade profitable, a positive result will need to emerge from the present target.
The company staff numbers have been slashed, they have a strong producer with Outlar 1, Harrison 2 now on production and are presently drilling the Stewart 1well which is near Outlar 1 but 50% larger in size .
Will Antares turn the corner with Stewart 1 a success too???

 

[Trader Paul]

Hi folks,

AZZ ... ticking up nicely today, as the first of 3 positive cycles
comes into play for this week .....

.... so, we are expecting a good finish, at the end of the week,too ...

have a great day

paul

P.S. ... holding AZZ

 

[brettc4]

Today AZZ started to buyback convertable notes and will continue to do so over the coming year.

Would someone please explain this to me. From what I understand, the buy back is effectively paying off debt, which I assume they are doing since they are producing income and have the cash flow to do so.

The statement only said they may by back up to 100%, but that is not a guarentee. If they did buy it all back, it would cost $21,000,000 but they would save interest of $2.1m a year.

So could this potential wipe out their total debt if they bought back all 100%?
And if so this seems like a very good thing, but the share price didn't react in the way I would have thought (although it did just have a nice jump recently).. What is the reason, was it due to AZZ note specifically stating how much they would buy back or other reasons?

Or do I have this whole thing wrong.

Thanks,
Brett

 

[Trader Paul]

Hi folks,

..... it's time to look at this one, yet again ...

AZZ ..... announced a placement to a US investor this week, at a
premium to the current share price, so with 4 significant and positive
time cycles in September, we may see a rally off recent lows ...

have a great day

paul



=====

 

[ns944jp]

I talked to James Cruickshank recently.
He sounded happier than ever and more generous and relaxed than usual.
I guess we are going to see good cash flow for quarter report. I increased my holding yesterday.
I made double with AZZ in June.
Now money is already coming in ,SP should be better than august.

Oil price is low but remember when you sell oil and convert us$ to aus$, we get aus$1.62 for us$1 pretty much covering price off of oil these day.

buying back option is paying off the debt before hand totaly positive , typical for company which is making money.
Matter of time SP go north.

 

[ns944jp]

Crude oil price is going up to around $69.
$6-$7 which is over 10% up in just 2 days.
looks like market and oil price hit the bottom this week.
Bargain sale of stock market specially oil shares is almost over I guess.

See how much profit they are making.
It is good to be on the company which is already generating money comparing to many who are keep losig.
Important thing is not the plan or drilling, but to show money to investers.

Expecting 3 drilling shortly if 1 hit ok and increase profit rhey can save more money to go for bigger size.
still good to buy below $0.6.

 

[ns944jp]

Good to know more profit is coming and less cost and decreasibg debt. On the right track
Hope anotherr drillings turn to be profitable again
and increase cash flow.


Proven Oil Reserves have increased by over 85%
- Proven Gas Reserves have increased by over 225%
Cash receipts from revenue increased by 206% on the previous quarter to $3.1 million.
Cost reductions take effect with administration costs falling by 52% from $620,000
in the previous quarter to $297,000 for the current quarter.
Placement to a Strategic US Oil and Gas Investor raising $2.4 million at a 43%
premium.

Total Proved Future Net Cash Flow 24,236.9(USD'000)
again us$1 = aus$1.50 by today's rate
That means at least aus$36,000,000 at least and possibly
aus $200,000,000 is expected in good case.

I would like know what will happen to coming drillings.

 

[seasprite]

I see resolution 4 was passed regarding the issue of 1,000,000 performance rights over the next 3 years to James Cruickshank effectively giving him 1.8m (600,000 max per year provided criteria is met) . What reasonings were given to this at the meeting this Friday just passed ? How did the board convince shareholders? Did anyone go to the meetting ?

 

[seasprite]

Total Proved Future Net Cash Flow 24,236.9(USD'000)
again us$1 = aus$1.50 by today's rate
That means at least aus$36,000,000 at least and possibly
aus $200,000,000 is expected in good case.

where exactly are you getting these figures from and how can you calculate future cash flow when you do not know what the exchange rate will be or price per barrel or recoverable .

 

[seasprite]

I see options and performance rights were issued today 4 Nov 08. Perhaps AZZ might have an announcement regarding some good news to issue these so quickly , considering the meeting was only on Friday .

 

[seasprite]

this does not surprise me at all. Picked some AZZ up today for the following reasons

21 may 08 AZZ announce trading halt pending results from Harrison 2

23 may 08 AZZ announce

The current production rate is approximately 400 bbls of oil/day and 550 Mcf/d gas with only
traces of water. The well is currently flowing through a very small choke (8/64”) which has been
plugging periodically during clean up. It will take several days for the production to stabilise.

this has since stabilised to 253 Bbls/d and 818 Mcf/d for the september quarter.

Why I noted this company in may was basically the size of choke and why would you call at trading halt for 400 bbls of oil/day etc. etc.


8/64" is = 1/8" = 3.1 mm = 3 ants taped together = width of a shoe lace basically.

So if you can obtain 400 bbls of oil/day and 550 Mcf/d gas with only
traces of water through a choke that was periodically blocking , imagine what you would get if you opened the tap (choke).

 

[seasprite]

reason 2

Antares Energy is pleased to announce that the Outlar-1 well on the West Wharton project has
been successfully flow tested. The well was produced for a two day period on a very restricted
choke, at a rate averaging around 1.7 million cubic feet of gas per day (MMcf/d) and 120 bbls
of condensate per day and there was no water. The flowing pressure was in excess of 7,000 psi
and steady. The rate was intentionally restricted during the cleanup phase to ensure minimum
reservoir damage was caused, however it is our belief from the pressure data that the well is
capable of a higher sustainable production rate. The well is currently shut in for a pressure build
up and pipeline connection options are being assessed. The gas had a fairly low level of carbon
dioxide and is likely to be within normal pipeline specifications.

The above choke was even smaller at 7/64" and as everyone knows , flow pressure is always lower than shut in pressure , and 7000psi(flow pressure) is not small by any means.

West Wharton 3 is due spud in the near future.