Resource Wrap: 25 March 2010 – STO, WPL, BCC, WSA, CCU, COE, SRK, BOW, LGL
March 24, 2010
Santos Limited (STO) shares climbed Thursday morning amid rumours Woodside Petroleum Limited (WPL) is set to make a takeover offer for the company. Media reports speculate that Woodside is considering a $15 billion bid for Santos with the primary aim being the access of its gas export interests. At 1045 AEDT, Santos shares were 51c higher to $14.88, while Woodside shares had dropped 26c to $47.16. While some analysts have dismissed the rumours as nothing more than market speculation, the rumours have reportedly been circulating for some weeks now.
Buccaneer Energy Limited (BCC) said it has executed a binding agreement to acquire a 87.5 – 100% working interest in a portfolio of 57,600 gross acres of onshore and offshore oil and gas leases from private US based company Stellar Oil & Gas, LLC for US$2.65 million. The company said the offshore leases adjoin and adjacent to significant production assets of multi‐nationals including ConocoPhillips and Chevron. Buccaneer said the estimated reserves include P10 reserve potential of 1.2 TCF and 149 million barrels of oil (MMBO), as well as P50 reserve potential of 598 BCF and 53 MMBO. The company expects drilling to commence in calendar 2010.
Western Area NL (WSA) requested its shares be placed in trading pending an announcement to be made regarding a proposed issue of convertible bonds. The company said the trading halt is requested until the commencement of trade next Monday or earlier in the case an announcement has been made regarding the matter.
Cobar Consolidated Resources Limited (CCU) revised the resource estimate for its Wonawinta silver project to 47 million ounces of silver at an average grade of 71g/t. The previous resource estimate was 57 million ounces of silver at an average grade of 54g/t.
Cooper Energy Limited (COE) said it has been awarded a contract by PERTAMINA to operate and develop the Sukananti, Tangai and Bunian oil fields in South Sumatra, Indonesia. The company said the three oil fields have produced 1.08 million barrels of oil to date. Cooper Energy said it is looking forward to more fully developing the oil fields and recovering an additional 1 million barrels of oil. The company said its winning program consists of a signature bonus of US$861,888, 24 square kilometres of 3D seismic, a new development well, three well workovers and infrastructure upgrades. The expected total cost of the program over three years is US$6.8 million.
Strike Resources Limited (SRK) announced the appointment of former Polaris Metals managing director Ken Hellsten as managing director. The appointment followed the retirement of Shanker Madan as managing director as Mr Madan takes up his new role as non-executive chairman. The company said Mr Hellsten is a geologist with over 30 years’ experience in the resources industry, including employment in senior executive roles at BHP-Billiton, Centaur Mining and Ironclad Mining.
Bow Energy Limited (BOW) announced an initial certification of 2P gas reserves of 59 petajoules for its Blackwater CSG Field in Central Queensland, which exceeded gas reserve requirements to underpin the company’s Blackwater Power Project. The company said the initial 2P reserve represents only 5% of the 2P potential over the CSG Field. Bow said 2P reserves are yet to be assessed and defined over the balance of the Blackwater 3P area, representing 95% of the target. The company said it is continuing to drill additional appraisal wells on the Blackwater CSG Field to be followed by appraisal drilling on the adjacent Comet CSG Field.
Lihir Gold Limited (LGL) chairman, Ross Garnaut, said that while gold continues to exhibit its traditional volatility, the outlook remains fundamentally strong due to declining mine production and rising global demand. Mr Garnaut said that with the company’s gold sales completely unhedged and the company having a growing production profile in the coming years, the group has entered 2010 in an exceptionally strong financial position, with large cash assets held against likely investment demand, a portfolio of high-quality, low-cost, long-life assets, as well as a promising exploration pipeline to drive future growth.
Buccaneer Energy Limited (BCC) said it has executed a binding agreement to acquire a 87.5 – 100% working interest in a portfolio of 57,600 gross acres of onshore and offshore oil and gas leases from private US based company Stellar Oil & Gas, LLC for US$2.65 million. The company said the offshore leases adjoin and adjacent to significant production assets of multi‐nationals including ConocoPhillips and Chevron. Buccaneer said the estimated reserves include P10 reserve potential of 1.2 TCF and 149 million barrels of oil (MMBO), as well as P50 reserve potential of 598 BCF and 53 MMBO. The company expects drilling to commence in calendar 2010.
Western Area NL (WSA) requested its shares be placed in trading pending an announcement to be made regarding a proposed issue of convertible bonds. The company said the trading halt is requested until the commencement of trade next Monday or earlier in the case an announcement has been made regarding the matter.
Cobar Consolidated Resources Limited (CCU) revised the resource estimate for its Wonawinta silver project to 47 million ounces of silver at an average grade of 71g/t. The previous resource estimate was 57 million ounces of silver at an average grade of 54g/t.
Cooper Energy Limited (COE) said it has been awarded a contract by PERTAMINA to operate and develop the Sukananti, Tangai and Bunian oil fields in South Sumatra, Indonesia. The company said the three oil fields have produced 1.08 million barrels of oil to date. Cooper Energy said it is looking forward to more fully developing the oil fields and recovering an additional 1 million barrels of oil. The company said its winning program consists of a signature bonus of US$861,888, 24 square kilometres of 3D seismic, a new development well, three well workovers and infrastructure upgrades. The expected total cost of the program over three years is US$6.8 million.
Strike Resources Limited (SRK) announced the appointment of former Polaris Metals managing director Ken Hellsten as managing director. The appointment followed the retirement of Shanker Madan as managing director as Mr Madan takes up his new role as non-executive chairman. The company said Mr Hellsten is a geologist with over 30 years’ experience in the resources industry, including employment in senior executive roles at BHP-Billiton, Centaur Mining and Ironclad Mining.
Bow Energy Limited (BOW) announced an initial certification of 2P gas reserves of 59 petajoules for its Blackwater CSG Field in Central Queensland, which exceeded gas reserve requirements to underpin the company’s Blackwater Power Project. The company said the initial 2P reserve represents only 5% of the 2P potential over the CSG Field. Bow said 2P reserves are yet to be assessed and defined over the balance of the Blackwater 3P area, representing 95% of the target. The company said it is continuing to drill additional appraisal wells on the Blackwater CSG Field to be followed by appraisal drilling on the adjacent Comet CSG Field.
Lihir Gold Limited (LGL) chairman, Ross Garnaut, said that while gold continues to exhibit its traditional volatility, the outlook remains fundamentally strong due to declining mine production and rising global demand. Mr Garnaut said that with the company’s gold sales completely unhedged and the company having a growing production profile in the coming years, the group has entered 2010 in an exceptionally strong financial position, with large cash assets held against likely investment demand, a portfolio of high-quality, low-cost, long-life assets, as well as a promising exploration pipeline to drive future growth.
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