Registered Members Login:
   
Forgotten Your Details? Click Here To Recover +
Welcome To The ShareCafe Community - Talk Shares And Take Stock With Smart Investors - New Here? Click To Register >

A reminder to all members that you agree through the use of ShareCafe, that you understand and accept the TERMS OF USE.


3 Pages (Click to Jump) V   1 2 3 >   
 
  
Reply to this topic

AOK, AUSTEX OIL LIMITED
rmryan
post Posted: Aug 20 2012, 06:08 PM
  Quote Post


Posts: 430
Thanks: 20


In Reply To: veeone's post @ Jun 28 2012, 10:31 AM

this popped up a flag for me today .....anyone got a tech view on it ??



 
veeone
post Posted: Jun 28 2012, 10:31 AM
  Quote Post


Posts: 5,058
Thanks: 1115


A position I recently added is AusTex Oil Ltd. (AOK:ASX). It is traded in Australia, which is unusual for a small energy stock with most of its assets in the Mississippian play of Oklahoma and Kansas. That could be why it trades at a discount to its asset value and to its peers. AusTex is next to Range Resources Corp. (RRC:NYSE) on the Nemaha Ridge. Range has drilled more than 100 vertical wells in the area. Many have had more than 100% rates of return. More recently, Range has drilled eight horizontal wells within two miles of AusTex's position. AusTex was in one of those wells from which they expect a 30-day average rate of 1,000 bbl/d or more. With a well cost of less than $4M and production of 1,000 bbl/d, the well could pay out in a few months. AusTex is a minority working interest partner in that particular well, with approximately 14–15% interest. AusTex has 6,000 net acres adjacent to that well. The company has drilled a few vertical wells on the land with well costs around $600K and 30-day rates in excess of 100 bbl/d. Those are very high rates of return.

Another AusTex neighbor is Apache Corp. (APA:NYSE), which just had its analyst day. Apache has hundreds of thousands of acres in the Mississippian in Kansas, where it envelops AusTex's position in Kansas. Apache is going to drill wells all around AusTex. It is possible that AusTex is in the center of a newly discovered oil field. It's exciting, but too early to give it too much credit in my valuation.

TER: Your valuation on AusTex is based on production and cash flow plus a big growth component?

JY: Yes. There will be a lot of growth from the 6,000 acres next to Range. AusTex will be able to drill hundreds of vertical wells or dozens of horizontal wells that will each have net present values well in excess of the cost of the well. You can more than double your money every time you drill a well. The market cap right now is just above $30M. It's a small company, but if it drills a few wells, it can ramp up production and cash flow significantly. It will be able to internally finance the drilling and get payback in approximately six months for each well.

TER: AusTex stock has been pretty hot this year—tripling up to a few weeks ago and then selling off. Is the word getting out or is this still somewhat under the radar?

JY: I think one or two investors in Australia figured it out. In February and March, people got excited. Prior to that it, it was stable in the $0.08–0.11 range for a long time.

The stock started to move after announcing excellent vertical well results. Range's results were also great. Based on both companies' results, investors were comforted that it was not a "one-off" well. Recently, the stock has declined with the sector as a whole. With additional drill results, the stock could rebound and head higher.
http://www.theenergyreport.com/pub/na/13722

 
veeone
post Posted: May 5 2011, 08:24 AM
  Quote Post


Posts: 5,058
Thanks: 1115


Been out of touch with a few of my oilers lately so updating whatever i can find. V1

Austex Oil Plans Horizontal Wells To Hit 2011 Production Target
Shares in Austex Oil have suffered over the past year despite the fact the ASX-quoted company is focused on oil production at a time when oil prices are sky high. The problem for the fledgling oil producer, which holds leases in the US mid-continent, may well be the slow pace of progress towards hitting its production goal of 1,000 boepd within 12 months: this was the company's goal when it appeared at Oilbarrel.com's September 2010 conference and in the most recent March 2011 investor presentation the production goal and the timeline were unchanged.
Targeting proven behind pipe reserves in known oil producing states like Oklahoma and Kansas isn't quite as easy as it sounds; vintage wells can take more work than expected to rehabilitate, remedial work for damaged wellbores can quickly erode project timelines while unseasonal winter weather, as seen earlier this year, can halt operations altogether. Indeed, in September 2010 the company, which is targeting a dual listing on the TSX later this year, was pumping 400 boepd but in December the monthly run was 170 boepd. Given that many of these wells pump between 20 and 40 boepd, this leaves a lot of work to be done if that 1,000 boepd target is to be reached this year.
The good news, however, is that this is a good time to be in the production business. For the year-ended March 2011, Austex revenues were US$4 million, more than double the previous year and, with oil prices in no hurry to retreat, there is every reason for Austex to be optimistic about the future – as long as it can bring its wells onstream in fairly short order. Indeed, the company reckons that production of 500 bpd generates free cashflow per month of US$600,000 (and that's based on a conservative US$80 a barrel oil prices); given that oil prices remain stubbornly above US$100 a barrel and Austex runs a low overhead business, with most of its wells coming in between US$250,000 and US$400,000 a day, this could quickly add up to be a very profitable cash-generative business.
The company is targeting low risk reserves, which can be brought onstream fairly quickly and cheaply. At the East Tonkawa Unit in northern Oklahoma, for example, where the company has a 100 per cent working interest and roughly 80 per cent net revenue interest in some 5,000 acres, the aim is to increase output from existing wells where there are proven but undeveloped reserves.
The first oil at East Tonkawa was discovered in 1955, with some 3.6 million barrels of oil produced from the Lower Layton, Red Fork and Mississippi Chat formations by Sun Oil. In recent decades, however, the leases have been fairly inactive, creating an opportunity for Austex to target unproduced formations such as the Cleveland Sand. It has identified ten initial wells for recompletion and has gradually been bringing them back into production. Last month, for example, the ETU-4 well was recompleted in the Cleveland Formation, finding 50 feet of net pay and delivering production of 40 bpd plus associated gas. The ETU-3-2 well has also been recompleted in the Cleveland.
After this, the company is eying possibly two or three horizontal wells to target the deeper Mississippi Lime formation. A number of NYSE-listed oil companies have started to target this formation in the area, achieving initial production rates of between 300 and 1,300 boepd. These are obviously more expensive to drill – around US$2 million per well – but the scale of the resource is much greater, with Estimated Ultimate Recovery of 300,000 to 500,000 boe per well compared to 30,000 to 90,000 boe per well for the vertical wells. A couple of successful horizontal wells would quickly put Austex on the fast-track to its 1,000 boepd per day target. Oilbarrel.com

 
veeone
post Posted: Sep 9 2010, 08:34 AM
  Quote Post


Posts: 5,058
Thanks: 1115


Despite Cooper-5 Setback, Austex Oil Limited Still Targets 1,000 BOEPD Within 12 Months
AusTex Oil Limited, which is set to present at Oilbarrel.com's conference in the City of London on Thursday, is seeking to build an oil and gas production business in the US (and while its name suggests a Texas focus, it actually holds properties in Oklahoma and Kansas). This business strategy has already been tried and tested, with varying degrees of success, by a series of small cap ASX companies, among them in recent years Antares Energy, Samson Oil & Gas and Victoria Petroleum.
AusTex, which only listed on the ASX in 2008 raising A$20 million, hopes to grow quickly, seeking to push up production from around 170 barrels of oil equivalent per day last month to more than 1,000 barrels of oil equivalent per day within 12 months. It currently has 2P reserves of 7.4 million barrels of oil equivalent spread across around 70,000 acreas in Oklahoma and Kansas but hopes to upgrade this number based on successful drilling and acreage acquisitions: an updated reserves report is due out shortly. The Sydney-headquartered company has over A$5 million in cash and no debt.
The past year has already seen significant growth, with gross quarterly sales increasing from A$188,000 in the September quarter of 2009 to A$1.39 million in the June quarter of 2010. Net of royalties, the company boasted a 97 per cent increase in revenues from the March to June quarters of this year. Analysts at Burrell Stockbroking in Australia were impressed. "While we expect this growth trajectory to plateau somewhat in the September quarter, there is clear forward momentum in revenue," said the analysts, who applauded this micro cap stock for delivering cash flow positive operations in the June quarter, something of a rarity among its peers.
In Oklahoma, the focus is on developing proven producing leases, using modern technology to unlock previously untapped reserves or increase flow rates. These wells are not prolific producers but they can be very economic, providing a stable platform of production and revenues to support the company's growth. On its Lancaster leases, for example, the company plans to use water injection and good oilfield husbandry to maintain well rates of around 30-50 barrels per day while its Sweet leases in Pawnee County cost around US$380,000 per well to drill to deliver production of 20 bpd, ensuring a 12 month payback on investment at an oil price US$70 a barrel. The company is also seeking to acquire a new property, Tonkawa East, which offers some exciting upside through the deployment of horizontal drilling technology in an area where nearby wells flow 300-500 boepd. If the deal closes and these rates are replicated on its acreage, then production would really start to ramp up for AusTex.
Kansas, by contrast, is an exploration play, where in December 2009 the company made a new find with the Clark-1 well. That well, on the Cooper lease in Sheridan County, flowed at an initial rate of 200 bpd and has now been brought into production at a rate of 50 bpd plus associated water (a water disposal well and tank battery are onsite and fully operational). This production rate should increase, possibly to around 80 boepd, when a larger pump jack is fitted.
Less positively, a follow-up well, Cooper-5, has been suspended due to downhole mechanical issues. Samples and well logs have confirmed hydrocarbons in the Toronto and Lansing Kansas City formations, with similar reservoir characteristics to the discovery well. But after completion and perforation, the well failed to flow, possibly due to formation damage during cementing.
The joint venture partners are considering whether to drill an offset well at this location, which would cost AusTex around US$200,000. AusTex chairman Dr Peter Power said this may be the best way forward given the low cost of the offset well. He added that the company, which has a 53 per cent working interest in the project, had put in place new procedures to monitor the integrity of each stage of future wells on the project. "We have confirmed the oil is in the ground," he said. "We need to gain a better understanding of the reservoir characteristics and alternate techniques to ensure consistent successful completions."
The news from Cooper-5 is disappointing as this Kansas project had to potential to deliver higher flow rates than the Oklahoma properties and could have made a material near-term contribution to meeting that 12-month 1,000 boepd production target. This is still possible but production won't be ramping up quite as quickly as the company gets to grips with completion techniques. AusTex has identified more than 20 targets on the Cooper lease so there's plenty to chase down here. As analysts at Hanuman Private Wealth point out, "it would not take a high success rate to have a substantial impact on valuation". Sydney-based Hanuman sets a price target of A$0.33 per share, more than double the current price of A$0.14. Oilbarrel.com.

 
Kuri
post Posted: Apr 12 2010, 06:02 PM
  Quote Post


Posts: 31


In Reply To: Hotfire's post @ Apr 12 2010, 05:25 PM

After crunching the numbers I couldn't make it work either and have decided to wait until the price drops again. The price has risen 20% in the last few days and the SPP is only 1 share for every 5 and then the options are 1 out of every two shares purchased under the SPP. This means you need to spend a small fortune to get any material gain. I think after the dust settles people who purchased shares at .16 will probably sell them for .195 make a tidy profit and buy them back again at .16.

Any thoughts?

P.S. it looks like the ex-rights date has been extended by two days so a few people who bought at todays highs without seeing that may be a little annoyed.



--------------------
[color="#ff0000"]WARNING: Do not make any financial decisions based on anything in this post.[/color]
 
Hotfire
post Posted: Apr 12 2010, 05:25 PM
  Quote Post


Posts: 264
Thanks: 10


In Reply To: kosmos's post @ Apr 12 2010, 05:08 PM

yes i tend to agree.

This is a handy pump to assist the capital raise, once its done and dusted i would be looking to pick up some of the profit taking will is likely to happen cool.gif

 

Featured Stock Stories





kosmos
post Posted: Apr 12 2010, 05:08 PM
  Quote Post


Posts: 26
Thanks: 1


In Reply To: BSA's post @ Apr 12 2010, 09:54 AM

AOK have spent the $20 million raised at IPO plus a few million more raised along the way....and for what? It seems to me not a lot, but I could be wrong. Now they want another $5 million. I think I'll wait for the stock price to come back before putting toe in the water again.

 
BSA
post Posted: Apr 12 2010, 09:54 AM
  Quote Post


Posts: 8,001
Thanks: 403


In Reply To: Kuri's post @ Apr 12 2010, 08:58 AM

The day the shares trade ex‐rights, they trade without rights, so you would need to buy prior to the ex date.



--------------------



Said 'Thanks' for this post: Kuri  
 
Kuri
post Posted: Apr 12 2010, 08:58 AM
  Quote Post


Posts: 31


I am thinking of participating in the non-renouncable rights issue but I would like to check something. The ex-rights datae is Tuesday 13 April and the record date is the 19th April. As long as I purchase the shares prior to 5pm on the 13 will I still be eligble for the rights issues even though the shares haven't settled?

If somebody knows the answer to this that would be great.

Kuri



--------------------
[color="#ff0000"]WARNING: Do not make any financial decisions based on anything in this post.[/color]
 
atlas
post Posted: Dec 9 2009, 12:03 PM
  Quote Post


Posts: 49
Thanks: 12


In Reply To: biarra's post @ Aug 11 2009, 04:40 PM

Ahhh .... thats a nice feeling ... another announcement .. another burst of buying .. another sp rise.

We have so many prospects and so many things happening at once that this steady supply of positive announcements means that people are slowly realising the potential of AOK.

Im actually starting to build a wall chart of prospects/wells/progress etc as it is so hard to keep up!


As usual, I wish I had more, but dont we always? AOK are my biggest holding already so I guess I'm just being greedy smile.gif

 
 


3 Pages (Click to Jump) V   1 2 3 >

Back To Top Of Page
Reply to this topic


You agree through the use of ShareCafe, that you understand and accept the TERMS OF USE.


TERMS OF USE  -  CONTACT ADMIN  -  ADVERTISING