AZZ 0.00% $7.50 antares energy limited

I am currently holding stock in AZZ, and have been watching this...

  1. 255 Posts.
    I am currently holding stock in AZZ, and have been watching this company for 5 years or so. There has been a large influx of ASX companys making the move into USA gas exploration in the past year. Many of these companys have been " Base metal explorers ",, and have no experience with gas at all,.
    The first fact is that the Yanks saw them coming and have been flogging off acreages like smarties, to any Tom Dick or Harry that fronts up . So, a carefull , and knowledgable selection is imperative, so as not to end up with just a " pig in a poke " tennament ! Some companys may as well have bought theirs on E-Bay !!
    The second fact is that all the shallow - "easy to get gas " in the USA, has already been exploited, and is basically gone ! In past years, the USA gas supply was in excess of the demand, resulting in the market price remaining low, and in turn, making deep well exploration cost prohibitive. Not so now though, as they are very dependant on the gas pipeline from Canada, to make up the local supply deficit.
    The USA market price, per thousand cu/ft of gas, is considerably higher than in AUS or in Turkey, where AZZ developed and eventually sold all their gas production assets.
    The reasons stated by AZZ for the Turkish sale, and move to the USA , were that the gas fields were reaching saturation point for future expansion,-a lucrative financial remuneration for the assets, and a perceived market negativity towards assets based in that part of the world. An investigation of all past announcements,-asset development progress, and SP fluctuation,, will confirm that is quite reasonable to accept that those three reasons were valid.What can also be confirmed , is that AZZ are experienced gas professionals. They have always been in gas, and they know it well, and they've taken their money and their experience to the USA.
    A lot of punters have been disapointed in their progress since their entry to the USA venture,but, punters expect instant results, and have no patience for the methodical research,- and carefull "homework " approach to the exploration program , which AZZ has addopted ! Deep exploration means spending big money, and an experienced gas explorer , like AZZ, wants the maximum chance for a successful result.! AZZ's " strike" to "well drilling" ratio ,is extremly high by exploration standards, it's just that the production figures, although profitable , have not been spectacular as yet !! The strike rate, however , is not by way of luck !!
    I recently deceided to do a fact for fact comparison between AZZ and any other company which is attempting a USA gas exploration entry, with a similar program.!! Could have chosen a few,but ended up choosing GDN, as they are doing their first deep- 16,000 ft. well , the same as AZZ. For those interested, the following information can be found in the official ASX announcements of each company.!!
    History:- GDN:- historically a base metal explorer for gold, iron ore, and uranium.
    AZZ:- historically a gas producer and explorer.
    Funding:- GDN :- Had a two month trading suspension , so as to facilitate a share consolidation, and then a $16 mil share issue fundraiser.
    AZZ :- Self funded through sale of Turkish assets.
    Current cash position :- GDN :- approx $5.mil
    AZZ :- approx $34.mil
    Geoligical research :- GDN:- 2D seismic
    AZZ :-3D seismic
    Deepth of well and drilling duration :- GDN :- approx 16,000 ft.--- 6 months drilling, not yet completed.
    AZZ :- approx 16,000 ft.----6 weeks drilling, not yet completed.
    Directors behaviour in relation to share holdings :- GDN :- Director converted 5,000,000 options to FPO's for 20c each six days before a trading halt. Sold 5,000,000 FPO's, approx two days after the same trading halt, for the year high of between $1-20 and $1-26.
    AZZ :- 3 or 4 directors continually investing, with personal funds for on market buys , and still holding.
    SP movement on spec of drilling outcome :-
    GDN :- 500 %
    AZZ :- 50 %
    Market Cap :- GDN :- approx $117.6 mil
    AZZ :- approx $ 101.4 mil
    Shares on issue :- GDN :- approx 145.2 mil
    AZZ :- approx158.5 mil
    Announcements :- GDN :- A number of forward looking statements
    AZZ:- no forward looking statements
    JORC, or proven resources :- GDN :- no proven , gold, iron ore, uranium, oil or gas yet.
    AZZ :- Gas production USA approx $5 to $6 mil per year.
    Sorry but i don't offer any personal opinions about the above, You will form your own ,i'm sure !!
 
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