11 May 2010drilling progress report● Neutral
Moeller #1 was at 8,086 ft on 10 May, heading for about 12,500 ft. Potential is restated at 118 bcf of gas and 2.8 million barrels of condensate. No results yet. NSE holds 38.5%.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
10 May 2010other▲ GoodMajor
An independent adviser, NSAI, found the Goldwyer shale across NSE's ~37,000 km2 Canning Basin permits has the geological indicators for shale gas. NSE has hired Euroz to seek and assess potential partners and farm-out, with drilling targeted for 2011. No resource figure given.
10 May 2010investor presentation● Neutral
May presentation on Goldwyer shale gas and the US program mostly repeats known results. It adds Moeller #1 potential of 118 bcf and 2.8 million barrels, and a W3 well planned for June and W4 for August.
3 May 2010drilling spud▲ GoodMajor
Moeller #1, the second Wilcox well, spudded 29 April, targeting 100 bcf and 2.4 million barrels of condensate at 12,500 ft. NSE has farmed in to raise its interest to 38.5% (from 36%), paying 39.33% of costs of ~US$1.9m dry or ~US$2.9m completed. Cash is about $3.0m.
27 Apr 2010drilling result▲ Good
Partner Burleson reports the same Heintschel #1 result: 225 ft hydrocarbon column, 135 ft gas sand, well to be completed and fracced in late June. Participants listed: Burleson 38%, AKG 16.5% operator, NSE 32.5%, others 13%. Nothing beyond NSE's own release.
27 Apr 2010drilling result▲ GoodMajor
Logs at Heintschel #1 (TD 11,800 ft) show a 225 ft hydrocarbon column with 135 ft of gas sand, versus 85 ft expected. Low-permeability sands need fraccing, planned late June, to prove commercial flow. NSE 32.5%; rig moves to Moeller #1 (100 bcf potential).
23 Apr 2010drilling progress report▲ Good
Heintschel #1 reached planned total depth with multiple extensive hydrocarbon shows over larger intervals than expected, including gas to surface and condensate in mud. NSE says logs are needed to confirm producible hydrocarbons. NSE holds 32.5%.
21 Apr 2010production update▲ GoodMajor
Brasher #1, the Yegua gas discovery flow tested in March at 380 mcf/d, is now tied into the sales network and producing, the company's first revenue from the US program. NSE holds 32.5%; stabilised flow rates are to be reported in coming weeks.
19 Apr 2010drilling progress report▲ Good
Heintschel #1 hit elevated gas readings in the target Wilcox sands, at 11,402 ft with total depth about 11,750 ft. NSE says their significance is unknown until logs are run, so this is not yet a discovery.
19 Apr 2010drilling progress report▲ Good
Burleson reports a strong gas show in the Wilcox sands at Heintschel 1, at 11,402 ft on 18 April. Its significance is unknown until total depth, logging and testing. Same news as NSE's own announcement.
15 Apr 2010other● Neutral
Notice of a radio interview with the Managing Director on the Heintschel #1 progress and Canning Basin shale gas. No new business information.
14 Apr 2010drilling progress report● Neutral
Heintschel #1 was at 8,598 ft on 13 April, heading for a planned total depth of about 11,750 ft, with no results yet. NSE's cash was about $3.8m, down from about $4.2m in its 30 March update.
14 Apr 2010drilling progress report● Neutral
Burleson reports Heintschel 1 at 8,598 ft as of 13 April, against a 11,750 ft target. Nothing new on results.
6 Apr 2010drilling spud● NeutralMajor
Heintschel #1, the first Wilcox well, spudded 4 April, about a week or so after the late-March plan. It targets 7.2 bcf of gas and over 100,000 barrels of condensate at 11,750 ft, costing about US$2.5m. NSE holds 32.5%.
6 Apr 2010drilling spud● Neutral
Burleson reports Heintschel 1 spudded on 4 April. Target depth is 11,750 ft, with 7.2 bcf potential. Budget is about US$1m if dry and US$2.3m if completed. NSE holds 32.5%.
30 Mar 2010drilling scheduled● Neutral
Site and permits are ready for Heintschel #1 (formerly W1; 7.2 bcf potential, NSE 32.5%), with the rig due early April, then W2. Brasher #1 gas sales tie-in is now expected in the first half of April. Cash is about $4.2m.
30 Mar 2010joint venture update● Neutral
Partner Burleson says the first Wilcox well, Heintschel 1 (NSE 32.5%), awaits a rig expected early April; W2 (NSE 36%) follows, targeting 100 bcf. Brasher 1 is expected on stream by late April, with revenue of over US$40,000 a month.
16 Mar 2010half year report● Neutral
Half-year accounts to 31 December 2009 restate the strategy: complete Lawford 1 in EP417, pursue Goldwyer shale gas, and drill six Texas wells. The visible text gives no financial figures beyond those already known.
10 Mar 2010other▲ GoodMajor
NSE will accelerate shale gas work on the Goldwyer shale in its Canning Basin permits, after a review with an independent adviser found it prospective, though early stage. An adviser report is due within two months. No resource figure is given.
10 Mar 2010listing compliance notice● Neutral
ASX queried the timing of the Brasher #1 flow test announcement after a share price rise. NSE replied it learned of the result around 10am on 5 March, considered it incomplete and not material until finalised after 1pm, and announced on 8 March, claiming compliance.
10 Mar 2010investor presentation● Neutral
March presentation on Goldwyer shale gas repeats the case in the same-day announcement: large Canning Basin acreage (>37,000 km2), shale gas background, and known US and Lawford 1 plans. No new results or figures.
8 Mar 2010well test result▲ GoodMajor
Brasher #1 flow-tested at 380 mcf/d of gas with no water from the top 2 ft of the 14 ft gas zone. Pipeline hook-up and sales are expected within 30 days. Management calls it a small first step; focus shifts to larger Wilcox wells, first spud planned late March.
25 Feb 2010other● Neutral
Notice of a radio interview with the Managing Director about the Brasher #1 gas discovery. No new business information.
22 Feb 2010drilling result▲ GoodMajor
Brasher #1 found a 14 ft gas column in the Yegua, and a formation test gave 100% gas. This is NSE's first US well; gas sales are expected in 30-45 days. Final size is unknown until extended flow testing. Focus now moves to the Wilcox wells.
12 Feb 2010drilling spud▲ GoodMajor
Brasher #1, the first well of the six-well Colorado County program, has spudded, about two months later than planned. It targets 1.4 bcf of Yegua gas at 5,000 ft, with NSE holding 32.5%. A three-well Wilcox rig contract is secured, with the first Wilcox well due in March.
5 Feb 2010investor presentation● Neutral
February 2010 strategy presentation restates a 2010 plan of six US wells and Lawford 1 re-entry in Q3, plus shale gas work in the Canning Basin. Cash was $5.4m at 31 December, with no debt. A farm-out of the Edwards well E1 will be sought.
27 Jan 2010asset acquisition disposition● Neutral
Partner Burleson announces the same two new Wilcox projects, with working interests of Burleson 36%, NSE 36% and AKG 28%. It also confirms Brasher #1 is deferred to early February, with the first Wilcox well expected late February or early March.
27 Jan 2010asset acquisition disposition▲ GoodMajor
NSE acquires a 36% working interest in two new Texas Wilcox projects (one in Colorado County outside the existing area, one in Wharton County) with Burleson and AKG. Each is said to have over 100 BCFE potential. Brasher #1 is deferred to early February.
4 Jan 2010drilling progress report▼ Bad
Brasher #1 is still not drilling because rain has left the access road and site wet. The first two Wilcox wells are said to remain on track for early 2010. Delay now runs past the planned December start.
18 Dec 2009drilling progress report▼ Bad
Brasher #1 start is delayed to the week of 21 December because of very wet weather. Permitting and site work are complete; the delay is weather only. The December start now slips.