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NWE - NORWEST ENERGY NL


theflasherman

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I doubt it. I think with the number of disillusioned NWE holders out there selling will arrive into any strength in the stock. I think, generally, the market does not rate the management and is awaiting to see if the drill jockeys in NWE step up to spend some of the proceeds of Cliffhead.

 

Of course I could be completely wrong!! http://www.asxboard.com/html/emoticons/wacko.gif

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It is my understanding that 8.1M equates to 5.5cps so we have the opportunity to buy in at less than the cash backing.

Additionally, this stock has rights to an area near where Arc Energy are currently drilling. If Arc is successful Norwest could double in price. The selling at present is most likely coming from the traders who had the shares issued to them at 4c last Oct.

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IN REPLY TO A POST BY Financial Chatter, Wed 07/01/04 08:28pm   [READ POST]

It is my understanding that 8.1M equates to 5.5cps so we have the opportunity to buy in at less than the cash backing.
Additionally, this stock has rights to an area near where Arc Energy are currently drilling. If Arc is successful Norwest could double in price. The selling at present is most likely coming from the traders who had the shares issued to them at 4c last Oct.

Hi,

 

Firstly the announcement states that the companies have reached an agreement in principle with the first key date being 16th of Feb for Sale and Purchase agreement (SPA) which will see NWE receive $810,000 in escrow.

 

The move still needs to be approved by shareholders.

 

Settlement, if it gets this far, is expected in April, so probably a bit early to get set yet.

 

In the annual report the net assets were stated at 4.5M, however, 4.2M of this is defferred exploration and evaluation costs, which can only be realised on the sucessful commercialisation of sale of the stakes they relate too...see note 9 in the accounts. Also note they wrote off 2.1M last financial year of these deffered costs.

 

The total number of sahres on issue 162,471,872.

 

So given the actual net assets is around $300,000 before this proposed sale the total assets after will be probably around 8.5M which makes asset backing at 5.2cps (by my calcs) and that's allowing some of this deffered cost to be realised.

 

IMO...I wouldn't go near it as the margin for error is not there.

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IN REPLY TO A POST BY moneyman888, Wed 07/01/04 08:21pm   [READ POST]


Hi,

Firstly the announcement states that the companies have reached an agreement in principle with the first key date being 16th of Feb for Sale and Purchase agreement (SPA) which will see NWE receive $810,000 in escrow.

The move still needs to be approved by shareholders.

Settlement, if it gets this far, is expected in April, so probably a bit early to get set yet.

In the annual report the net assets were stated at 4.5M, however, 4.2M of this is defferred exploration and evaluation costs, which can only be realised on the sucessful commercialisation of sale of the stakes they relate too...see note 9 in the accounts. Also note they wrote off 2.1M last financial year of these deffered costs.

The total number of sahres on issue 162,471,872.

So given the actual net assets is around $300,000 before this proposed sale the total assets after will be probably around 8.5M which makes asset backing at 5.2cps (by my calcs) and that's allowing some of this deffered cost to be realised.

IMO...I wouldn't go near it as the margin for error is not there.

You are more precise than me regarding the cash and your figure has been verified this morning. However what has been overlooked is that we have the opportunity to buy in at the cash backing price and get a free carry on the area near where Arc are drilling and the other Perth basin and offshore areas that are definitely worth a couple of million. I am happy to enter at these prices and have done so.

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Guest AJ007
with current share price, the value of NWE is $7.7 million. the payment of $8.1 million should be in by now, ROC offered to exercise their option in the Northern Offsshore basin. Plus Jingemia producing, with soon increased productions to begin, plus other leases, which have some positive outlooks, including a couple in the East Timor Sea, which has been fruitful in the past. why the hell has the market been so negative towards them in recent weeks?
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Guest AJ007
One thing I question with NWE is their involvement in Jingemia, with a bit over 1%. For a maximum of about 4 barrels a day for NWE's time and effort, it does not seem worth it. With all of their time, making calls, ASX announcements and other associated costs, it just seems like NWE had nothing to do with their time, so they had to atleast show to their shareholders that they were doing something. Bring on the bigger fields, ones that they own more than 1% in. A 1% investment is not going to make anyone rich!
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