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EHX - EHR Resources

Discussion in 'Stocks 0-H' started by System, Jan 7, 2013.

  1. System

    System Administrator

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    Cott Oil & Gas Limited (CMT) is an early stage oil and gas explorer that holds acreage off Western Australia as well as onshore Papua New Guinea and West Papua.

    http://www.cottoilandgas.com.au
     
  2. springhill

    springhill Make the drill work for YOU

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    There is no talk about CMT on any of the stock forums I am aware of. Have just finished accumulating a holding in Cott O&G.

    MC - $11m
    SP - 17c
    Shares - 66m
    Options - (20m @20c, 4m @ 25c, 4m @ 30c) all due Dec 2015
    Cash - $5.7m

    CMT has a dual focus on the Carnarvon Basin and PNG, located in the Westralian Superbasin.

    2013 funded work and exploration programme:
     WA 261 (Carnarvon Basin): near term oil drilling – Cott’s share circa A$0.85m.
     PPL 435 and PPL 436 (Papua New Guniea): Aeromag - gravity survey to define targets (A$500k).
     PPL 437 (Papua New Guniea): Seismic and Aeromag - gravity review to define targets (A$500k).
     WA 460: Exposure to Shell-Mitsubishi Palta well. WA 460 estimated to hold approximately 18% of the 13.4 tcf Palta target. Drilling by Shell-Mitsubishi ongoing at no cost to Cott.

    Management
    Andrew Dimsey (Managing Director)
    Co-founder of Cott. 30 years of commercial experience as a senior executive of Beach Petroleum, Alliance Oil, Claremont Petroleum, Elders Resources, Arc Energy, Origin Energy. Focus on all commercial aspects of O&G industry -- mergers and acquisition, corporate restructuring, JV arrangements, operations and production.
    Ian Longley (Technical Consultant) - BSc Geology
    Co-founder of Cott. Petroleum geologist with 27 years of upstream exploration and new business experience across the Company’s region of focus. Senior positions within Shell, Woodside, Lasmo and Oil Search. Advises Cott on strategy and new project identification. Recognised as a global authority on petroleum geology of SE Asia.
    Clifford Ford (Technical Consultant) - BSc Geology
    Co-founder of Cott. Explorationist and consultant with 32 years of experience with Chevron, Western Mining, Woodside, BHPP, OMV, Oil Search, Novus. Carnarvon Basin/seismic interpretation specialist and has been involved in the discovery of a number of oil and gas fields.

    Major Shareholders
    ~10% -- Michael O’Keeffe (ex Riversdale Mining Chairman/founder)
    ~21% -- Cott Management and founders, escrowed until Jan 2015

    2013 expenditure expected $2.7m
    2014 expenditure expected $2.75

    CMT have easily enough capital to cover 2013, may have to dip into the market in 2014 unless there is a farm out that delivers a pile of cash, in the same vein as PVD.
     
  3. wadesansom

    wadesansom

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    Hey, had my eye this stock and just wanted your thoughts on its current position, I am really unsure about this stock but you seem to have some knowledge about it.

    Thanks.
     
  4. springhill

    springhill Make the drill work for YOU

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    Hi wadeansom, I am in Singapore ATM so am only keeping a slight eye on the markets.

    In summation it has what I am looking for, that being - small MC, decent cash position, unrecognised by market, management credentials, activity in a sector which I am keen on, drill program paid for by others, bordered by oil majors one whom which is currently drilling.

    I don't mind getting in early and waiting, but there is action afoot this year.

    Hard for me to get into further detail from here, but interested in your thoughts.
     
  5. springhill

    springhill Make the drill work for YOU

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    Managed to scoop some more CMT on that little downturn at 13c. Nice work for the chap that scored a handful at 10c. Has bounced back to 15c.
    Probably my favourite stock at this point along with PVD.
     
  6. Crows

    Crows

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    Wow, this stock looks rather tight. Such low volume producing such violent swings in price. If they did happen to hit pay dirt, the SP will lose it's roof as it'll be blown to bits. Trying to get a decent position in this without driving the price up would be extremely hard for multiple investors to do if they all decide to do it at the same time.. I wonder how long it will take before others see the value in this company. I literally only just discovered it tonight. Might put this one on my watch list and if it somehow hits those lovely lows, I might take a position! (Yes I said lovely - but that's only because I'm not invested ;))
     
  7. springhill

    springhill Make the drill work for YOU

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    UPDATE ON PNG ACTIVITIES

    PPL 437 (Cott 20%)
    The PPL 437 joint venture has approved the acquisition of seismic over the Rosewood, Tea Tree and Kandis leads in the second half of 2013 to confirm two drilling locations. In addition, the operator will bring forward the drilling schedule for PPL 437 subject to results of the seismic.
    The proposed seismic programme can be seen in Figure 1, with the prospects considered analogous to the Elevala/Ketu and Stanley fields and a possible continuance of this hydrocarbon trap sequence.
    PPL 437 is situated in the western forelands immediately north of the Elevala/Ketu discoveries (866 bcf, 43.4mmbbl condensate) in PRL 21 (Horizon/Osaka Gas, Talisman, Mitsubishi and Kina) and approximately 30km west of the Juha gas field (2.7 Tcf) in PDL 9 (Exxon Mobil, Oil Search).
    Recent drilling activity in the western forelands has achieved a very high success rate with 14 of 15 wells intersecting hydrocarbons, including all 7 wells drilled in the last 18 months.
    Initial evaluation work on PPL 437, including a review of the existing seismic data, has identified six prospects/leads within the permit. The Rosewood and Tea Tree leads in the western part of the license are proximal to discoveries in neighbouring licenses. The Kandis lead to the east of the Ubuntu discovery (0.2 Tcf) has been identified on the eastern side of the licence.
    The proposed Tingu-1 well in neighbouring PRL 21 is located approximately 10 km from the southern border of PPL 437, and is targeting approximately 0.5 Tcf of wet gas. The result of Tingu-1 will be of great interest to the Company as it finalises its seismic and drill programmes for PPL 437.
    The Tingu-1 well is due to spud during Quarter 3, 2013.

    PPL 435 & PPL 436 (Cott 50%)
    The Joint Venture has acquired and evaluated existing data and approved the acquisition of additional infill aeromagnetic and gravity data for PPL 435. A contractor has been selected and the work should be concluded early in the third quarter of 2013. Cott’s share of the survey cost is expected to be approximately $250,000.
    Once the additional aeromagnetic and gravity data has been acquired and processed, the Company will have a formidable suite of data for the region which, combined with its knowledge of the basin in southern West Papua, will represent an advanced, unique and comprehensive data set for the area.
    With manageable commitments under PPL 435 and 436 over the next 18 months, the Company will be seeking to analyse its data set with a view to presenting high potential farm-out opportunities to interested parties.
    While PPL 435 and 436 are large and relatively underexplored, existing well, seismic and aeromag/gravity data provide early indications for the presence of active hydrocarbon systemspresently generating in the east with migration pathways onto PPL 436. The Panakawa oil seep located northeast of PPL436 continues to flow at surface at a rate of 5bbls/day.
    Furthermore, both licenses are strategically located astride the Fly River, the main conduit of commercial activity in the area, and close to the proposed gas pipeline to the port of Daru. The Company has already received positive interest from several parties concerning this acreage.

    Other Developments in the Region
    The Company notes that:
     On May 23, 2013, Horizon Oil (ASX:HZN) announced that Osaka Gas, a major consumer of gas and importer of LNG into Japan, had agreed to purchase 40% of HZN’s interests across its western foreland acreage for U$204m, subject to project milestones.
     On May 24, 2013, InterOil Corporation (NYSE: IOC) announced that it is in exclusive discussions with super-major ExxonMobil with respect to its Elk-Antelope discoveries.
     Industry sources suggest that first gas from ExxonMobil’s two-train PNG LNG development is expected to occur in early to mid-2014.
    The above regional developments, while not directly involving Cott, have implications for the value of the Company’s PNG acreage. In particular, the entry by Osaka Gas, a major downstream LNG participant, in the western basin region is viewed by the Company as a significant endorsement of both the region’s existing gas inventory, and the prospectivity of the region for major LNG developments.
     
  8. rbgmauq

    rbgmauq

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  9. springhill

    springhill Make the drill work for YOU

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    CMT announcement today.

    RELEASE OF ESCROWED SECURITIES

    In accordance with ASX Listing Rule 3.10A, CottOil andGas Limited (ASX: CMT) advises that the following restricted securities will be released from escrow on 8 October 2013:

    • 2,042,199 fully paid ordinary shares
    • 408,440 listed options exercisable at 20 cents on or before 31 December 2015

    A few shares dropped off, possibly on the back of this announcement today.

    The release may see a new low set and the opportunity to buy at a decent price ahead of activities in PNG, or not.
     
  10. springhill

    springhill Make the drill work for YOU

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    Grant of 40% Interest in Pandora Gas Fields
    http://www.asx.com.au/asxpdf/20131223/pdf/42ltbdcx19ldt1.pdf

    ● Cott granted a 40% interest in new PRL38 license which contains the 792 BCF2 Pandora gas fields in the Gulf of Papua
    ● PRL38 contains the Pandora 1X well which was drilled in 1988 and flowed dry gas at 57mmscfd, Pandora B-1X well which flowed at 43.1mmscfd, and several other prospects which have yet to be evaluated
    ● Cott executes agreement to share proceeds on commercialisation of up to a 25% interest in PRL38 subject to agreed caps
    ● During the bidding and license application process, Cott agreed to assign 5% of its participating interest to Kina Petroleum Ltd in exchange for 10,000,000 Kina shares
    ● Work program comprises development and commercialisation studies in Years 1-3 (firm commitment of US$2m for the JV) and a firm commitment well in Year 5 (2018)

    The license holders are as follows:
    Wondecla Ltd 40%
    Kina Petroleum Ltd 25%
    Talisman Energy Niugini Ltd (Operator) 25%
    Barracuda Ltd (a subsidiary of Santos Ltd) 10%

    Latest Corporate Presentation from the Dec 13th AGM
    http://www.asx.com.au/asxpdf/20131113/pdf/42ktr6mk9g0jgl.pdf
     
  11. RP_Automotive

    RP_Automotive

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    I'm holding Cott as a medium long term (3-5 years). They seems to have some good permits and JV partners, along with the recent announcement they look to be steaming into the right direction.
     
  12. springhill

    springhill Make the drill work for YOU

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  13. springhill

    springhill Make the drill work for YOU

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    SALE OF KINA PETROLEUM LTD SHARES

    Cott Oil and Gas Limited (CMT) advises the sale of 10 million shares in Kina Petroleum Limited on market. The net proceeds are $3,332,442.

    CMT was starting to run short on cash, this injection should see them through the next 12 months.

    The sale of shares rather than a cap raising signals (to me!) the company's intent to maintain a tight registry and avoid dilution if possible.
     
  14. System

    System Administrator

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    On June 27th, 2017, Cott Oil and Gas Limited (CMT) changed its name and ASX code to EHR Resources Limited (EHX).
     
  15. Cam019

    Cam019

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    EHX.JPG
     
  16. greggles

    greggles I'll be back!

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    EHX surging this month following its announcement on 6 December that it has entered into an agreement to acquire 100% of Canada based Nanuk Diamonds Inc from Prospect AG Trading Pty Limited.

    The total consideration for the purchase of Nanuk Diamonds is A$1m which will be satisfied by the issue of 20 million fully paid ordinary shares in EHX at a deemed issue price of 5c per Share payable by the issue of 10 million Shares to each of the Vendors as each of them owns a 50% interest in Nanuk Diamonds. There are no milestoned payments.

    About Nanuk Diamonds:
    A$1 million seems a little on the cheap side for a company that has so many mineral claims in an area that is relatively unexplored but has a history of being prospective for diamonds. Perhaps the previous owners, one of whom is joining the company as a member of the board, just didn't have the capital to carry on with the necessary development and exploration. Perhaps there are other reasons.

    The market clearly thinks the acquisition was a smart move, with the share price having surged from 3c to 8.7c in less than two weeks.

    One to watch.

    big.chart=EHX.gif
     
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