Hey J9 - Another Sunday rolls along.Yes - nothing at all...

Hey J9 - Another Sunday rolls along.

Yes - nothing at all regarding Huinga and we don't even know at this point if the JV meeting was actually held. I guess no news is good news as if they simply decided to drill another fresh well mid 2003 or something this wouldn't have taken a lot of consideration and/or announceing as opposed to deciding to go ahead with a Workover sidetrack which apparently would cost around $1m and would no doubt take a bit more planning etc. I don't think they could get a Workover rig this side of Xmas. We will just have to wait and see. They should announce something this coming week.

From Brent Emmets remarks at the Horizon Brisbane presentation a few weeks ago the workover rig seemed to be the go rather then a "coiled tube" something or other?? The problem is of course how urgently the JV wish to move this along. I would suspect most of them would want to properly test Huinga sooner then later but of couse in the Oil business months rather then weeks can be "quick" given that equipment has to be sourced etc. Certainly the likes of PCL, ITC & HZN would want to prove up this "discovery" asap for the sake of their suffering shareholders - but I guess AWE, Swift and the German mob have plenty on their plates right now - especially AWE.

I'm holding heaps of PCLOA - the sharp end of Huinga if it all goes pear shaped but holy sh*t if they get the Workover rig in action and get through all the cement etc (which is certainly the problem according to PCL/ ITC/HZN) and make proper contact with a "discovery" of the rumoured minimum 46mmbbls - things will get interesting. Bell Potters report on PCL/Huinga in Sept 2002 predicted a value of 20cps for PCL based on a 46mbbl hit @ $A10 per barrel valuation. However the reserve estimates I guess would be out the window now considering they completely missed the target sands/reserviors??

Also holding NWE/NWEOA as my Cliffhead reirement effort (and they have the best leverage overall) but the selling by Black Rock recently has restrained the price in my view. NWE's leverage to the Perth Basin will see the price move up for sure very soon as the drilling gets closer. C'mon the mighty Twin Lions. 46% POS. Very Nice!

ARC certainly going well. Seemed to jump 10c in the week.

AWE moving slowly but surely to the magic $1 and why not with their prospects. Perth Basin exploration alone could be worth 56cps according to Carmichaels Research note November 2002. Tui would be right off the scale of course. By coincidence I found an old business card in a clean up of my office yesterday of a chap I think I met at an APEA Conference in the late 1980's. Bruce Phillips - Director - AWE. But the card stated that AWE was " An Australian Joint Venture between Ampol Exploration Limited, Bligh Oil and Minerals Limited, Bridge Oil Limited". A few names from the past! He certainly has been around for a while. I should have just left my $$$ in AWE over the past few months rather then "dabble" in HDR. What a short term disaster that has been but a hit on Twin Lions will help of course. In the meantime I think its going to struggle to hold 50c in my view.

REgarding PSC - I had some dealings with them in the early 1990's in Sydney when they had the first drilling success in the Gulf of Mexico. I think it was about that time their share price went from 20c or something to $6 very quickly before it all went bad - I left Sydney by then so I'm not quite sure what happened. I met Terry Fern the MD a few times - a smart bloke. They also had a Gold Prospect I think in the Phillipines. I noticed a few familiar names on their latest announcement.

Thinking about buying a few PPP but AWE would be a more conservative bet if Tui comes in. A 700mmbbls hit with Tui could mean 600cps to AWE.