I still think that is the case. A JV with AWE would create a very dominant position in the Perth Basin with access to existing infrastructure and close to major markets. NWE and AWE area already JV partners in tenements EP413 and L14 adjacent to the Woodada Shale and conventional Gas fields.
Shale gas is shaping up to be the new frontier. It has already taken off in the US and it is only a matter of time before it takes off here as well.
NWE already has three potentially company making exploration assets: * Oil in TP15 Perth Basin * Shale Gas in it's Perth Basin Tenements * Oil in Wessex Basin, England
... and on-going royalty payments: * Oil Royalties from Puffin and Jingemia. Currently an estimated $15m from approx 20.93 mboe. However, AED/Sinopec JV targeting 600 mboe in AC/P22 in the current seismic campaign.
My preference is for a merger with AWE ... or a friendly or hostile takeover to excite the market.
NWE has already done most of the time consuming work, surveying and analysing potential drill sites. They are ripe for the picking by any suitor wanting to pick-up multiple drillable oil and gas targets close to markets and infrastructure.
If AWE doesn't move soon, some other company will.
At it's current market price, NWE is very undervalued.
Takeover activity in the Australian market is hotting up.
Keep a close watch on AWE's announcements re: Woodada Shale Gas potential (NWE has 1500 sq. km. of potentially gas bearing shales).
Also watch out for announcements from AED re: Increase in Puffin/Talbot oil field targets form their current seismic campaign. If their targets are achieved, this could boost future royalty payments 10 fold.
Also watch out for an increase in AWE's share value as a result of any commercial oil discovery in their wildcat drill site in the Hoki oil field NZ. (Their share price has already started to move.) AWE's potential share is similar in size to either NWE's TP15 or Wessex Basin targets. Credit Suisse value AWE's Hoki "one-in-10" chance of success wildcat well at an NPV of $1.50 per boe. If successful, they value the discovery at $16.00 per boe (NPV).
I have also previously posted on valuing NWE and comparing our company with its' peers. To view these posts, click on my nic and follow the links. I have also cited all data sources to back-up my valuations and comparisons, so that any reader can do their own research and make up their own minds.
Good luck to all shareholders!
Cheers,
GrayNomad :-)
NWE Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
