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Is John Mauldin Testing a new Anatabloc Prototype???????
John Mauldin is testing a new prototype ........his new toy which he has mentioned several times.
John Mauldin October 2, 2012
I will be at the UBS conference with my partners from Altegris and will also spend an evening with my good friend Pat Cox, who writes Breakthrough Technology Alert. I am sure we will talk about the latest technologies and especially those that may help both of us fight off the ravages of growing older. Pat has the prototype of a new “toy” that he is raving about. I have been able to procure a prototype as well, and if it works even half as well as the study results out of Stanford suggest, I will let you know. Just think of me as your friendly neighborhood guinea pig.
John Mauldin October 5, 2012 nearly mentions Anatabloc
In the Intro to the "Outside the Box" Newsletter he send out today, John Mauldin wrote :
"But I will note that I did 189 push-ups today (sets of 50, 50, 50, and 39 with other upper-body exercises) at the gym. That is twice as many as I have ever done. There is a story behind that, as technology “assisted” me. I still had to do the actual work, but a prototype of a new invention (no, not available yet) allowed me to recover from my exertion much, much faster and therefore do more actual pushing and pumping in the same amount of time. Nothing magic. No cool new biotech pill that makes me 10 times stronger. And no mechanical assists. I will write more at a later time as I test my new toy, but the first day was cool. Let’s see how it works in a few months. But a great way to start another year." END
Other Comment
"It was John Mauldin who introduced me and about 1000 other attendees to Star Scientific's discovery and Anatabloc at the Agora Financial symposium 7/11. In fact when he was done describing the history and science behind it he had most of the audience drooling, ok maybe not exactly drooling but a strong desire for Anatabloc and then he popped two in his mouth. You'll note this was 2 months before the general release of Anatabloc and John was given a supply of it early. So yeah it would appear John gets early access to new technology."
"John is a renowned financial expert, a New York Times best-selling author, a pioneering online commentator, and the publisher one of the first publications to provide investors with free, unbiased information and guidance, Thoughts from the Frontline—the most widely read investment newsletter in the world. Each week, well over a million readers turn to John Mauldin to better understand Wall Street, global markets, and the drivers of the world economy. "
Regarding the news about TV anchor Jennifer Livingston
Thyroid issues
Regarding the news about TV anchor Jennifer Livingston see:
Jennifer Livingston responds to viewer letter about her weight
http://tinyurl.com/9knl7d8
What is ashame is there a world renowed doctor at John Hopkins Hospital (Paul W. Ladenson, MD, of Johns Hopkins University in Baltimore) that is working with the nutraceutical supplement Anatabloc with huge success. This is the answer for Jennifer's thyroid issues.
See:
Anatabloc nutraceutical supplement at GNC.
Thyroid http://tinyurl.com/9xd4edg
More Thyroid: http://tinyurl.com/9tlwv47.
Note comments: http://tinyurl.com/8s8fssz.
KEY VIDEO
Regarding the news about TV anchor Jennifer Livingston
Thyroid issues
Regarding the news about TV anchor Jennifer Livingston see:
Jennifer Livingston responds to viewer letter about her weight
http://tinyurl.com/9knl7d8
What is ashame is there a world renowed doctor at John Hopkins Hospital (Paul W. Ladenson, MD, of Johns Hopkins University in Baltimore) that is working with the nutraceutical supplement Anatabloc with huge success. This is the answer for Jennifer's thyroid issues.
See:
Anatabloc nutraceutical supplement at GNC.
Thyroid http://tinyurl.com/9xd4edg
More Thyroid: http://tinyurl.com/9tlwv47.
Note comments: http://tinyurl.com/8s8fssz.
KEY VIDEO
GNC Employees
Went to GNC last night to company store in Phoenix. GNC Employees are now taking Anatabloc. Normally one or two a day since these young people have very few issues. I have been emailing they Anatabloc summaries so they know more than I do at this point.
Stocking has gone up to 15 boxes every two weeks (up from 2 to 4 last month). Interesting women are purchasing to combat menopause.
Get the email address of GNC employee and send them the summaries on investor village entitled --google search this-
Heart Attacks, Cancer and Strokes ANATABLOC nutraceutical supplement at GNC
and this one Anatabloc nutraceutical supplement available at GNC Thyroid
We can make the GNC employees great Anatabloc sales people by educating them. It is that easy.
Anatabloc nutraceutical supplement available at GNC Thyroid
Thyroid / Thyroiditis
Overview
In the USA alone over 70 million THYROID prescriptions are written at a value of about $2 billion; it's the 4th most prescribed prescriptions for any disease. In the USA there are approximately 20 million people being treated for THYROID disease.
How Many Americans Suffer THYROID Disorders?: Statistics Reveal THYROID Disease is Common in the USA http://suite101.com/article/how-many-americans-suffer-thyroid-disorders-a135894#ixzz22I6ImzFP
In early October 2012 Johns Hopkins University School of Medicine is said to be releasing results of a human THYROID study using the dietary supplement Anatabloc. The study is funded in part by the Walton Family Foundation and is being performed in nine (9) clinical sites in Michigan, Texas, New Jersey, Illinois, and Florida.
Human THYROID Study Evaluating the Dietary Supplement Anatabloc in THYROID Health-ASAP (Antabloc Supplementation Autoimmune Prevention)
http://clinicaltrials.gov/ct2/show/NCT01551498
The American THYROID Association
Falls Church, Virginia. Sep. 19, 2012 The American THYROID Association (ATA) today announced today announced it will honor Paul W. Ladenson, MD, of Johns Hopkins University in Baltimore, with the 2012 Lewis E. Braverman Award on Sept. 21 at the 82nd ATA Annual Meeting in Québec City, Québec, Canada. The Lewis E. Braverman Lectureship Award recognizes a member of the ATA who has demonstrated excellence and passion for mentoring fellows, students, and junior faculty and has a long history of productive THYROID research.
“While advancing his own body of research, Dr. Ladenson has become widely respected as one of endocrinology’s most thoughtful and trusted mentors, making him an outstanding choice for the 2012 Lewis E. Braverman Lectureship Award,” said ATA President James A. Fagin, MD, of Memorial Sloan-Kettering Cancer Center. “Countless fellows and trainees have benefited from the opportunity to work directly with Dr. Ladenson over the years and have gone on to assume leadership positions in the field of endocrinology at various universities, research institutes, and within the ATA.”
Dr. Ladenson holds several distinguished positions at Johns Hopkins University, where he is the John Eager Howard Professor of Endocrinology, and Professor of Medicine, Pathology, Oncology, Radiology and Radiological Science. He is also director of the Division of Endocrinology and Metabolism and a Distinguished University Professor.
Dr. Ladenson’s research interests include applications of THYROID hormone analogues for treatment of cardiovascular disease, novel approaches to THYROID cancer diagnosis and management, and health economic analyses related to THYROID patient care. Currently, Dr. Ladenson is investigating effects of the nutritional supplement anatabine on autoimmune thyroiditis.
http://www.newswise.com/articles/american-thyroid-association-to-honor-paul-ladenson-md-with-lewis-e-braverman-award-at-annual-meeting
Note that at a meeting at the Roskamp Institute ( http://www.digplanet.com/wiki/Roskamp_Institute) in June 2011, Dr. Ladenson stated that, “aside from RCP-006 (anatabine - now Anatabloc™ at GNC) there is no known compound that stops thyroiditis.”
Evaluating the Dietary Supplement Anatabloc in THYROID Health-ASAP (Antabloc Supplementation Autoimmune Prevention)
http://clinicaltrials.gov/ct2/show/NCT01551498
Background of Anatabloc
If you’re not familiar with research history of Anatabloc™ here you go: A quick history of ‘tobacco’ research; in 2004 Dr. Paul Ladenson, Director of the Division of Endocrinology at Johns Hopkins conducted studies among a group of flight attendants and found reduction of thyroiditis / Hashimoto’s disease related to inhalation of second hand cigarette smoke.
Next in the timeline, Founder of Anatabloc Jonnie Williams determined that one of the 4000 chemicals in tobacco /nicotine, namely anatabine, reduced the urge to smoke. What Star found was that the anatabine-based compound had many/now hundreds, of other beneficial effects. A central part of the Anatabine (that evolved into Anatabloc™) narrative occured when Jonnie Williams wife developed severe THYROID disease facing serious THYROID surgery because of his advanced thyroiditis.
Famously devoted to her, Williams arranged for his wife to be treated by one of the top THYROID specialists in the world, Dr. Patrizio Caturegli. Caturegli studied with internationally known Italian endocrinologist professor Aldo Pinchera of the University of Pisa. Today, Caturegli is associate professor of pathology, endocrinology and immunology at Johns Hopkins.
William’s wife had already developed THYROID nodules. At that point, surgery was necessary and scheduled 30 days out. Williams told Caturegli about the anatabine supplement. Caturegli suggested that there would be no harm in her trying the product. She did. The fibrosis reversed and the surgery was canceled. Her condition has continued to improve, and Williams reports that she is completely free of the symptoms of THYROID disease.
.
Johns Hopkins later became very interested and they began their THYROID research. A surging accumulation of confirming data began to occur largely from the Roskamp Institute (http://www.michaelmullan.org/blog.html), conducting research using anatabine on Alzheimer’s disease, gastroenterology, rheumatology, cancer, auto-immune diseases (lupus), and cardio-atherogenesis (the process of atheromatous plaque development in arteries), among other conditions.
About Anatabloc at GNC
Anatabloc® leverages the body’s natural process for regulating its own inflammation using anatabine, a naturally-occuring compound found in some plants, combined with Vitamin A and D3 to help the body to avoid excessive creation of inflammation. Pre-clinical studies have shown that this combination inhibits pro-inflammatory pathways, thereby helping maintain lower levels of inflammation.
Anatabloc is a dietary supplement for anti-inflammatory support of the immune system. Since many disorders, like coronary artery disease, diabetes, asthma, Alzheimer's, and rheumatoid arthritis, are caused by chronic low-level inflammation, Anatabloc is a potential preventative treatment for these diseases.
Anatabine is a naturally-occurring alkaloid, found in eggplant, peppers, green tomatoes, tobacco, potatoes, and a variety of other plants and vegetables in the Solanaceae family. Anatabloc® stimulates a natural body process to promote a healthy inflammatory response.
What is Anatabloc®?
Anatabloc® is a supplement that contains 1 milligram of anatabine base, 500 units of Vitamin A and 40 units of Vitamin D3.
No prescription required
Because Anatabloc® is a dietary supplement, it does not require a prescription.
How often do I take it?
For best results take two tablets/lozenges three times daily
Key article about heart attacks and strokers and inflammation
WSJ article of September 3 , 2012 here http://on.wsj.com/Sh9dCX
Website: http://anatabloc.com/home/
Background: http://anatabloc.com/the-science/
KEY VIDEO TO UNDERSTAND ANATABLOC
http://www.youtube.com/watch?v=AmC3Ths-Mt8
Anatabloc radio advertisement featuring pro football player Jeremy Shockey. "I feel better than I've felt in years!" He says he feels like he is 26 again.When you are taking Anatabloc you feel like you are much younger than you are.
http://www.youtube.com/watch?v=5wBcXII3GAc&feature=related
Radio clip Doctor
http://www.youtube.com/watch?v=5wBcXII3GAc&feature=related
“TURN BACK THE CLOCK WITH ANATABLOC !” Fred Couples
Who is Fred Couples? http://anatabloc.com/tag/british-open/
Fred Couples -- His C Reactive Protein levels (an inflammation marker measured by blood tests) dropped from 6.5 to 0.8, according to his interview on ESPN's The Morning Drive
Pro Golfer Fred Couples
http://www.youtube.com/watch?v=YTRPXv28bl0&feature=youtu.be
http://www.youtube.com/watch?v=MrMY7kusb-o
TV news report on Anatabloc
http://www.youtube.com/watch?feature=endscreen&NR=1&v=StVre96Vzr8
Few Testimonies on Anatabloc and Thyroid
· THYROID Study-- By fyreball27 . 7 months ago . Permalink
So I armed my sis with a bunch of info to take to her THYROID doctor (where she was headed...
So I armed my sis with a bunch of info to take to her THYROID doctor (where she was headed to get her next prescription for low performance THYROID)...told her she might have a tough time getting him to read it all but to at least ask what he thinks. She said he was shocked to hear that she knew about Antabloc/Anatabine because he has been in talks with Dr. Ladenson at Johns Hopkins to participate in a THYROID study--which she unfortunately didn't qualify for (much to her chagrin, she was hoping to get the product for free) but for the study they are apparently looking for new patients who haven't yet been treated...anyway, he recommended that she try it, and he would test her levels again in a month to see what kind of difference there was. Pretty COOL!! [My sis, who won't take the dang time to read the info, has also been somewhat skeptical of this "supplement"...while she surprised her doctor by brining it up with him, she was equally surprised by the fact that he not only knew about it but was also going to be in a study for it!! Guess BIG SIS knows what she's talking about!!! WOOHOO!!! :)
· THYROID results when taking Anatabloc By martinduong339 . 11 months ago . Permalink
Someone posted this here http://www.facebook.com/Anatabloc?sk=wall Lynn Oliver Just wante...
Someone posted this here http://www.facebook.com/Anatabloc?sk=wall Lynn Oliver Just wanted to share some amazing results. I have been battling THYROID disorders for over 10 years. I am 50 years old eat healthy, exercise everyday 1 hour of cardio 6 days a week and weights. I have been told by 2 different dentists that my body is attacking the roots of my teeth.. hence autoimmune disorders as is THYROID disease. My past two blood results for my thryoid were as follows: thryoid antibodies normal is 0-60 U/ml. my first result was 2720.5 U/ml, several months later they were 3655 U/ml.. I started taking Anatabloc 10 tablets a day for 16 days. I already had an appointment with my Dr. and asked if she could retest me and explained what I've been taking. She just called me with my blood work... my THYROID antibodies are now 300 U/ml... In just 16 days they decreased 3,355 U/ml. please share this with your friends and family who have any autoimmune disorders.. ie thryoid, diabetes, arthritis... the list is endless.
· THYROID Testimonial from Facebook By rkruzick . 9 months ago . Permalink
I thought I would post this before it was taken down from the Facebook page......yet anoth...
I thought I would post this before it was taken down from the Facebook page......yet another reason I will stay long. Lynn Oliver I've posted before about my thryoid and it was taken off. since than I have given it to my relatives all for different ailments and have had remarkable success. To recap my THYROID antibodies were 2720.5U/ml ( normal range is 0-60 U/ml) 6 months later they were 3655.6 U/ml.. Took anatabloc 10 a day was on it for 16 days and I was due for another blood test. My antibodies were 300 U/ml... WOW.. ...
· THYROID Testimonial from Facebook - rest of message By thearun . 9 months ago . Permalink . Go to topic
"I've posted before about my thryoid and it was taken off. since than I have give...
"I've posted before about my thryoid and it was taken off. since than I have given it to my relatives all for different ailments and have had remarkable success. To recap my THYROID antibodies were 2720.5U/ml ( normal range is 0-60 U/ml) 6 months later they were 3655.6 U/ml.. Took anatabloc 10 a day was on it for 16 days and I was due for another blood test. My antibodies were 300 U/ml... WOW.. waiting for my blood results.. Next gave it to my daughter who was having panic attacks, slight depression.. she was on 6 a day and felt like she couldn't sleep. She dropped her dosage to 3 a day and after one week called me and said " Mom I actually feel happy". She has since had only 1 panic attack that was very brief. she is 5'9" weighs 136 lbs. Now the mother in law has major OCD. I urged her to take it and she finally did. 3 a day. after about 1 week she spoke with me about how "calm" she is, she does not need to check things. ie door locked, stove shut off etc.. we are talking about someone who needs an hour to leave her house!! Her words " I can look at it and tell myself I don't need to check it " she is about 5'4" maybe weighs 130. Next up the hubby who would get up in the middle of the night 4-5 times to use the bathroom.. yes over 50.. got to love that prostate... he started taking 4 a day he is 6ft. weighs 222lbs. He is only getting up 1 time now. He is going to increase dosage to 6 a day to see if that will eliminate the 1 bathroom break so that he may get a full night sleep. will keep you posted
http://seekingalpha.com/article/749001-new-peer-review-credibility-from-johns-hopkins-could-drive-star-scientific-shares-higher
“Another item in closing: Eight years ago I was diagnosed with hypothyroidism and have been treated for the disease since then. I just received my lab results back from my internist. My THYROID Stimulating Hormone test was 1.84, the lowest reading in 8 years and down from 6.29 (hypothyroidism) when I began my treatment. Since I began taking Anatabloc last year my TSH has fallen from 3.3 to the new low of 1.84.”
PetroFrontier / Statoil / Heritage Oil PLC #3
It is amazing how many times over last few months Statoil has mentioned Australia. See article out today. It is even on the Statoil website !!! IMHO Statoil believes the fracs are going to be successful. Heck they purchased Brigham.....
As mentioned Statoil on ground for fracing of three wells in Australia. Per the 9/04/12 press release:
During the drilling of the horizontal section at Owen-3H, numerous positive hydrocarbon indicators were observed including:
•Oil staining
•Milky yellow fluorescing cut
•Strong gas recordings of C1 to C5
•Petroliferous odour
•Oil spots in the mud at the shaker
Question: Does the above sound like oil??????
Statoil Seeking Shale Oil Opportunities in Australia, China
By James Paton - Sep 20, 2012 7:28 PM MT
Statoil ASA (STL), Norway’s largest oil and gas producer, is searching for a second shale partner in Australia following a deal with Canada’s PetroFrontier Corp. (PFC) and is also considering acquisitions of explorers.
“We are actively looking for new opportunities in Australia,” Atle Rettedal, Statoil’s senior vice president for new ventures, said in an interview in the Northern Territory capital of Darwin, where he attended an industry conference. Statoil also is interested in shale opportunities in countries including Argentina and China, Rettedal said.
Statoil, ConocoPhillips (COP), Hess Corp., BG Group Plc (BG/) andMitsubishi Corp. (8058) have agreed to fund shale exploration campaigns through partnerships in Australia. Statoil in June agreed to invest as much as $200 million in a drilling program in the Northern Territory’s Southern Georgina Basin with PetroFrontier.
Stavanger, Norway-based Statoil is expanding internationally and into so-called unconventional resources as output from aging fields off its home country’s coast declines. The company, which operates about 80 percent of Norway’s oil and gas production, plans to boost output to at least 2.5 million barrels of oil equivalent a day in 2020 from about 2 million barrels currently.
“If we make another move in Australia, it should happen in the coming year,” Rettedal said yesterday. “This is the window of opportunity. It’s not something that will happen five years from now. It’s happening now.”
Shale Risk
The company spent $4.4 billion acquiring Brigham Exploration Co. in December to enter the Bakken and Three Forks shale areas in the U.S. Also in the U.S., Statoil bought assets in the Marcellus formation in 2008 and formed a venture withTalisman Energy Inc. (TLM) in the Eagle Ford formation in 2010.
Making shale oil and gas investments in stages is preferable, though purchasing a company in Australia is a possibility as well, Rettedal said.
“It’s perfectly feasible that we could do that,” Rettedal said, referring to acquisitions. “When it comes to shale exploration, we have a preference for doing it stepwise because there is a risk. You are making a qualified bet.”
Global energy companies such as Statoil are trying to tap what Australia’s government estimates is almost 400 trillion cubic feet of potential shale gas resources. Santos Ltd. (STO), Beach Energy Ltd. (BPT), Senex Energy Ltd. (SXY) and AWE Ltd. (AWE) are among Australian explorers holding shale acreage.
Obstacles to Production
Australian shale explorers may be a decade away from producing oil and gas on a large scale because of obstacles ranging from a lack of drilling equipment to higher labor and infrastructure costs, Wood Mackenzie Ltd. said in May.
“Large-scale shale production in Australia, that will take time,” said Rettedal, who cited access to infrastructure in the country’s remote fields as one of the main challenges for the industry. “You might be right if you said 10 years.”
Statoil agreed to acquire as much as 65 percent of PetroFrontier’s interests in four existing exploration blocks, plus two pending permits. The venture may drill as many as 20 wells by 2017 in three phases, according to the company.
http://tinyurl.com/cgpyd6s
PetroFrontier / Statoil / Heritage Oil PLC #2
This is my write-up. As mentioned Statoil on ground for fracing of three wells in Australia. Per the 9/04/12 press release:
During the drilling of the horizontal section at Owen-3H, numerous positive hydrocarbon indicators were observed including:
•Oil staining
•Milky yellow fluorescing cut
•Strong gas recordings of C1 to C5
•Petroliferous odour
•Oil spots in the mud at the shaker
Australian Bakken Play ---PetroFrontier teamed with Norwegian Statoil (Acquirer of Bakken Brigham Exploration October 2011 $ 4.4 Billion) on June 20, 2012
PetroFrontier is an international oil and gas company engaged in the exploration, acquisition and development of both conventional and unconventional onshore petroleum assets in Australia’s Southern Georgina Basin.
PetroFrontier’s common shares are listed on the TSX Venture Exchange under the symbol “PFC” or in U.S. "PFRRF" Petrofrontier holds 75% to 100% interest in Georgina exploration permits EP 103,104,127 and 128, in addition to pending exploration permits. totaling over 14 million acres.
PetroFrontier Corp. –Enormous Australian land position averaging 87% working interest on 14.1 million acres. Will use horizontal drilling and multistage frac technology.
PetroFrontier teamed up with International oil company Statoil recently on June 20, 2012 in farm-in arrangement. The 67% owned by Norwegian government Statoil is the world leader in shale resources such as PetroFortier’s South Geogina Basin.
Where are Statoil’s shale resources Marcellus/Eagle Ford/Bakken?
http://www.statoil.com/en/ouroperations/explorationprod/shalegas/pages/where.aspx
The ink was barely dry on the transaction and Statoil with a $ 74 billion market cap was talking about Australia:
http://www.ogj.com/articles/print/vol-110/issue-07/general-interest/statoil-plans-to-triple.html
“Separately, Statoil announced plans to partner with Canada's PetroFrontier Corp. on four exploration permits and two exploration permit applications in the southern Georgina basin in Northern Territory, Australia (OGJ Online, June 20, 2012).
[[color=red]b]Statoil said its Australia shale activities will rely on unconventional expertise it has developed in the US where it has leases in various shale plays.” [/color]
See Statoil video on shale and tight rock resources
http://www.statoil.com/en/ouroperations/explorationprod/shalegas/pages/theimportanceofshaleforstatoil.aspx
Statoil enters Australian Shale Play
http://www.statoil.com/en/NewsAndMedia/News/2012/Pages/20Jun_Australia.aspx
Other Article: http://tinyurl.com/86efdoh
PetroFrontier headed up by fomer ExxonMobil geologist Paul Bennett
Stock of PetroFrontier is near 52 week lows.
Of interest: PetroFrontier has drilled three vertical wells and is in process of completing the horizontal legs of these three wells. Fracing will occur over next few months. When PetroFrontier was searching for a farm-in partner all the data and logs associated with these three wells was available to prospective partners including Statoil.
Shallow target depth: 2,000 to 4,000 feet (600 to 1200 meters)
Founded in 2009, PetroFrontier is one of the first companies to undertake onshore exploration in the Southern Georgina Basin in Australia’s Northern Territory. PetroFrontier’s head office is in Calgary, Alberta and its operations office is in Adelaide, South Australia.
On June 20, 2012, the Corporation issued a press release announcing the execution of the Farmin Agreement and the Offering. Pursuant to the terms of the Farm-in Agreement with Statoil Australia has the option to earn up to 65% of the Corporation's working interests in the EPs and EPAs, in exchange for Statoil Australia's contribution of up to US$210,000,000 in exploration program related payments and carried costs over three phases of the Farmin Agreement. See articles and press releases
Ryder Scott, geological and reservoir engineers, assigned 26.4 billion barrels of gross prospective resources to PetroFrontier’s unconventional shale resource and 1.1 billion barrels to the conventional resource. Both management and Ryder Scott believe PetroFrontier’s shale resource is analogous to the Bakken in North Dakota or South Saskatchewan. This is a pure exploration company with all the resultant risks associated with it. Target is both light oil and natural gas.
http://finance.yahoo.com/q?s=PFC.V
52 week Price Range $ 4.24 ro $ .67
Price $.75
Market Cap $ 48 million
Cash on hand $ 17.35 Million
Shares Outstanding 63.998 million
Major Shareholders 62% Institution ownership
Heritage Oil PLC 8,832,000 shares 13.8%
On July 14, 2011 Heritage Oil (HOC TSX), an international independent upstream exploration and production company , prior to start-up drilling by PetroFrontier, announced in a press release that they had acquired 10.4% interest in PetroFrontier via public market purchase (paid over $ 2.50 share).
http://www.heritageoilplc.com/
http://www.heritageoilplc.com/pdf/Heritage_Oil_April_post_2011_results.pdf
Recent PETROFRONTIER Insider Buying
Jun 28/12 Martin, McGoldrick Indirect Ownership Public market buy Common Shares 0.720 - 0.770 100,000 n/a 100,000
Owned 185,000 shares prior to purchase (excludes options outstanding).
Martin P. McGoldrick
Director
Mr. McGoldrick has been a Director at PetroFrontier since its formation on February 6, 2009. With over 30 years of experience in oil and gas investment banking and international oil and gas exploration and development, Mr. McGoldrick has held various senior management positions within the energy industry, including senior roles with Bow Valley Industries Ltd. and TransAlta Corporation. Prior to joining PetroFrontier, he served as Senior Vice President and Director, Investment Banking of Jennings Capital Inc., until his retirement in July 2006.
Mr. McGoldrick graduated with a Bachelor of Electrical Engineering degree from the College of Dublin, Ireland and holds a Master of Business Administration with a specialization in Finance from the University of Calgary. He is a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA).
Date Insider Name Ownership Type Nature of Transaction Security Price ($) Units Change* Account Balance
Jun 28/12 Scott, Earl Patrick Direct Ownership Public market buy Common Shares 0.690 50,000 n/a 50,000
Earl Scott
Chief Operating Officer
Mr. Scott is PetroFrontier's Chief Operating Officer and, as of February 1, 2012, is the newest member of the senior management team. Mr. Scott brings extensive knowledge of drilling, completions, production operations, project management and facilities through 25 years of experience in the oil and gas industry. From 2010 until present, Mr. Scott was a consultant employed as Vice President, Operations for Red Rock Energy and Kurdistan Project Manager for Western Zagros, both in Calgary, Alberta. Prior to 2010, Mr. Scott held various roles including Vice President, Engineering and Operations with BG Canada Exploration Inc., and as a technical consultant to ExxonMobil Canada based in Calgary, Alberta. Mr. Scott has held a range of increasingly progressive technical leadership roles in Malaysia, France, Venezuela, Ecuador and Canada with companies such as Exxon, Schlumberger, AEC International and BG Group.
Mr. Scott is a professional engineer and has a Bachelor of Science degree in Mechanical Engineering from the University of Calgary.
PDF Presentation Note Slide 12 pipeline Darwin LNG
http://www.petrofrontier.com/en/presentations/pfc_-_investor_presentation_may_2012.pdf?PHPSESSID=6iochvq7ql5ekr0rt503hkjn80
Petrofrontier presentation at First Energy May 15, 2012 before Statoil Farm-in on June 20, 2012http://jetslides.tv/lobby/721
Comparison to Bakken
http://www.petrofrontier.com/en/documents/PFC-2011-03-21-analystcoverage-JenningsCapitalInc.pdf?PHPSESSID=8f6jvqfuiaip6vjmrg675cqua1
More Statoil
Statoil is 67% owned by the Norwegian government and has a market cap of $ 74 billion.
Statoil has stated that development and production of oil from shale and tight rock resources has begun to transform the global energy outlook.
Statoil’s shale and tight gas and oil business began in the US through active partnerships in the Marcellus play along the eastern seaboard, the Eagle Ford play in south Texas, and our own operatorship of tight oil activities in North Dakota and Montana in the Bakken play.
Statoil has farmed into Petrofrontier's four existing Exploration Permits (EP 103, 104, 127 and 128) as well as pending exploration permits (213 and 252) in the South Georgina Basin in Australia's Northern Territories in a Joint Venture project.
This is an early entry at scale into over 14 million acres of immature, but potentially highly prospective play at low cost, with high risk but also with significant upsides.
Through a step-wise exploration programme the partners will potentially drill 10-20 wells by 2017 in three phases to demonstrate prospectivity.
Petrofrontier will operate the first phase of the programme while Statoil has secured options to operate from the second exploration phase in addition to increase ownership interests from 25 to 65% of Petrofrontier's interests.
Statoil has committed to contribute USD 25 million for the first phase of the exploration programme. This figure could escalate to USD 200 million through a phase two and three depending on exploration results.
Statoil Video
http://www.statoil.com/en/ouroperations/explorationprod/shalegas/pages/theimportanceofshaleforstatoil.aspx
"We are very excited to announce this farm-in agreement with Statoil. Statoil is a highly regarded international exploration company, actively involved in major unconventional plays and brings exceptional financial resources and technical capabilities to our new relationship" says Paul Bennett, President and CEO of PetroFrontier. "We believe that partnering with a global leader like Statoil validates the potential of our assets and the exploration work we have completed to date."
PetroFrontier Corp.
Susan Showers
Manager, Investor Relations
(403) 718-0366 or Toll Free: (877) 822-7280
(403) 718-3888 (FAX)
info@petrofrontier.com
www.petrofrontier.com
http://www.ogj.com/articles/print/vol-110/issue-07/general-interest/statoil-plans-to-triple.html
“Separately, Statoil announced plans to partner with Canada's PetroFrontier Corp. on four exploration permits and two exploration permit applications in the southern Georgina basin in Northern Territory, Australia (OGJ Online, June 20, 2012).
Statoil said its Australia shale activities will rely on unconventional expertise it has developed in the US where it has leases in various shale plays.”
Statoil World Shale Plays
This article is available online at:
http://www.forbes.com/sites/christopherhelman/2012/07/18/why-the-world-is-now-coming-to-america-for-oil/
PetroFrontier / Statoil /Heritage Oil PLC
Note: PetroFrontier (PFC.V / PFRRF ) did a private placement that was oversubcribed. Insiders and Heritage Oil PLC picked up the bulk of the private placement. Statoil is on the ground in Australia getting ready to frack three wells with JV partner PetroFrontier. Statoil is using all their knowledge from Bakken on this play.
The good news is that Heritage must be close to 20% ownership of PFC. That means they should keep Statoil honest should their be success followed by buyout offer. Heritage may be ultimate bidder topping Statoil. Time will tell.
Regarding the private placement the insiders more than tripled their ownership. At 12/31/11 Jespersen only owned 28,700 shares --He purchased 115,385 shares abd received 115,385 warratnts Rae owned 135,000 He purchase 384,615 shares and received same in warrants Buckee owned 484,000 and purchased additional 769,231 shares and received same warrants
McGoldrick owned 185,000 at 12/31/2011 and purchased 200,000 shares and received like warrants. He previously purchased 100,000 in open market on June 28, 2012 at $ .72 to $.77
Buckee is former CEO and President of Talisman Energy. Retired in 2007. McGoldrick retired from Jennings Capital in 2006.
See all the increases in insiders ownership in Petrofrontier here
http://www.canadianinsider.com/node/7?ticker=PFC
Heritage Oil PLC purchased additional 2.3 million shares and received 2.3 million warrants in the PetroFrontier private placement
So they increased their position by over 50% !!
See all the increases in insiders ownership in Petrofrontier here
http://www.canadianinsider.com/node/7?ticker=PFC
12/31/2011 15.4% Heritage Oil PLC 8,832,000 shares 13.8%
On July 14, 2011 Heritage Oil (HOC TSX), an international independent upstream exploration and production company , prior to start-up drilling by PetroFrontier, announced in a press release that they had acquired 10.4% interest in PetroFrontier via public market purchase (paid over $ 2.50 share).
http://www.heritageoilplc.com/
http://www.heritageoilplc.com/pdf/Heritage_Oil_April_post_2011_results.pdf
Resource Stock Update V18 # 8.1
Australian Bakken PetroFrontier, PFC / STATOIL July 10, 2012
Ron Struthers 505 Cummer Ave Apt 311 Toronto Ont. M2K 2L8
Yearly subscription $225 cdn /year or US$225
The Oil Stock to own- No doubt you have heard how the large shale finds, like Marcelus in North America are discovering huge quantities of gas and oil and in fact it has changed the Nat Gas market in North America. I found a company that has discovered a new shale 3 times richer than the ones in North America. And this little company owns the whole shale. This little company could easily make a profound change to the world oil market. In fact a major oil company has already bought 14% of this company on the open market and one of the most famous investors in the world (George Soros) has also bought up over 6% on the open market.
They have drilled 2 wells, the 2nd called MacIntyre-2H reached a total measured depth of 1,916 metres and stayed within the primary target zone, the Lower Arthur Creek hot shale Formation, for approximately 1,080 metres, recording positive hydrocarbon indications along the entire length of the horizontal section.
A multistage open-hole completion string will now be placed in the well before the drilling rig moves on to drill the third horizontal well, Owen-3. Thereafter, a fracture stimulation program is expected to be carried out at each of Baldwin-2Hst1, MacIntyre-2H and Owen-3H.
This is the biggest opportunity I have seen in oil&gas since Ultra Petroleum where we made up to 9800%, no not a misprint, with stock splits $0.50 to about $50.
I have been following this play for about 4 years and am making you aware of PetroFrontier now
because all the right pieces have fallen into place, including the lowest, best buy in the stock price.
They are drilling the 3rd well, with a frac on all 3 wells to follow next, so the big results on whether a discovery is proven is yet to come, doing 3 wells improves the odds of success. At least one well should work, probably two and good odds for all three.
This is an enormous play, they have an average 87.1% interest in 14 million acres so bringing in a senior partner with deep pockets was key, so 2 weeks ago was announced that StatOil will spend $50 million and commit to an additional $80 million to earn an initial 25% and up to $210 million to earn 65%.
StatOil is an expert in shale oil&gas plays with significant participaton in 3 of the major North
American shales, Marcellus, Eagle Ford and Bakken. They know good shale prospects when they see them so this is a big vote of confidence for PetroFrontier.
http://www.statoil.com/en/OurOperations/ExplorationProd/ShaleGas/Pages/Where.aspx
Some excerpts from an article by EnergyNewsPremium.net
“TSX-listed PetroFrontier Corporation and Statoil announced this week the Norwegian energy giant would spend up to $US210 million to earn a 65% interest in six PetroFrontier permits over half of the southern Georgina Basin.
It’s the biggest farm-in deal yet involving a big international company over unconventional targets in Australia.
Statoil has committed to spend more than Hess, Mitsubishi and ConocoPhillips in their respective farm-ins by a wide margin.
The deal proves Statoil is a believer in the liquids-rich potential of the Georgina Basin, highlighted in a Ryder Scott report released by PetroFrontier in late 2010.
Ryder Scott found PetroFrontier’s four granted permits had strong similarities to the Bakken oil shale in North America. It estimated potential recoverable oil (P50 case) of 1.1 billion barrels from conventional targets and a whopping 26.4 billion barrels from shale oil horizons.
The new deal with Statoil locks in a big budget to test this potential, and quickly. For PetroFrontier, headed by former ExxonMobil geologist Paul Bennett, it has been a hugely successful exercise in adding value.”
Total investment by 2016 will be 230 million by Statoil and PFC.
By that time, I am convinced this will be a huge discovery, based on preliminary data Ryder Scoot estimates at 26.1 billion barrel potential.
Strong balance sheet $18 million cash
PetroFrontier TSXV:PFC Recent Price $0.77
52 week trading range $0.67 to $4.24
Shares Outstanding 64 million
Management 6.2%
Institutions about 63% Including:
George Soros Fund 6.2%, Epic Capital 10.6%
Heritage Oil TSX: HOC 14.1%
There are 5.7 million options at an average of 1.87, most above $2.00 with 1.2 million at 1.00 to 1.20 and just 220,000 at 0.25
Highlights
87% average W.I. In 14.1 Million gross acres in Georgina Basin, Australia
• EP 103/104 = 100% W.I.
• EP 127/128 = 75% W.I.
• EPA 252/213 = 100% W.I.
Geologically analogous to North America Shale plays, and shallow depth 600 – 1,200 meters utilizing horizontal drilling and multistage frac technology
Unconventional Oil Rich Zone
• 13 old wells identified with prospective oil rich zones
• PetroFrontier is first to horizontally drill and multi-stage frac in the Northern Territory,
Australia
Conventional Carbonate Zones
• Live oil shows identified in 11 wells, some with high background gas
• Untested potential bypassed oil pay zones identified in several old “dry holes”
Oil Resource 26.4 BBbl Ryder Scott evaluation in Nov 2010
• Biggest play risk is technical and economic (engineering)
Almost ¼ billion exploration phase by a major (expert in shale) StatOil where PetroFrontier is carried so no share dilution. Strong financial position with an expert management team.
Company/Property
PetroFrontier is an oil and gas company exploring for both conventional and unconventional onshore petroleum and natural gas in the Northern Territory, Australia. PetroFrontier is one of the first companies to undertake extensive exploration in the Southern Georgina Basin.
Founded in 2009, the first two years of operations concentrated on amassing a large land position, which currently sits at 14.1 million acres with an 87.1% working interest within four exploration permits. A drilling program commenced in late 2011 targeting significant unconventional hydrocarbon potential.
Headquartered in Calgary, Alberta, Canada, PetroFrontier employs a highly experienced management team and Board of Director with expertise in international oil and natural gas exploration and development.
Australia’s 30 on-shore drilling rigs are dwarfed by a fleet of more than 800 rigs in Canada. The bulk of petroleum spending in OZ is directed offshore leaving only 13% for onshore exploration. Australia is an LNG exporter but imports 55% of its domestic oil demand.
Onshore Australia is a bit of what Canada was like in the 1960s; huge tracts of unexplored land in hydrocarbon-prone basins. The Southern Georgina Basin is one of Australia's last virtually unexplored onshore sedimentary basins encompassing 100,000 square km and nearly 25 million acres, with the potential for multi-billion barrel accumulations. It is under-explored because of the massive shift to offshore hydrocarbon exploration some 40 years ago, its vast and remote deserts, land access issues and until recently, limited access to infrastructure and petroleum services.
PetroFrontier has four onshore EPs granted by the government of Northern Territory, which are
situated over what is believed to be the most prospective part of the basin. Very few wells have been drilled within the entire Southern Georgina Basin making the basin virtually unexplored by North American standards. Within and in the vicinity of PetroFrontier's four EPs and two EPAs a total of only twenty nine wells have been drilled, including twinned wells. The existence of giant oil and gas fields in Neoproterozoic/Cambrian rocks in Russia (Siberia) and in the Middle East (Oman), with recoverable oil reserves in the billions of barrels, has resulted in renewed exploration interest in other similar aged basins throughout the world. Also the great technical advances and widespread success in horizontal drilling and multistage fracture stimulation of unconventional oil shale plays in North America has made international "Hot Shale" zones, like the Arthur Creek found in the Southern Georgina Basin, valuable exploration prospects. The Southern Georgina Basin, onshore Australia, hosts high quality source beds and potential conventional and unconventional reservoir rocks.
Management of the Corporation believes that this basin is one of the most prospective onshore basins in Australia with potential for both very large conventional and unconventional oil and gas deposits.
PetroFrontier has a massive contiguous land position in the Southern Georgina Basin and access to potentially significant oil and gas reserves at relatively low exploration and drilling costs. To identify prospects, PetroFrontier is applying world-class geophysical techniques and seismic data under the guidance of experienced North American and Australian exploration experts.
Exploration is centered on leading edge drilling technologies. PetroFrontier is the first company in Australia to use unconventional horizontal drilling and open hole multi-stage facture stimulation techniques, both of which have unlocked tremendous production volumes from unconventional plays in North America.
Drilling start-up in 2011; Next Steps in 2012
PetroFrontier initiated its drilling campaign in August, 2011 with the drilling of one horizontal well
(Baldwin-2Hst1)and the recent completion of one other (MacIntyre-2). The third horizontal well is planned for the 3rd quarter of 2012 and should spud any day now. An independent open hole fracture stimulation program will be conducted on all three horizontal wells, and these operations should be completed by the end of the 3rd quarter 2012. This program will primarily test for economic flow rates from the unconventional Arthur Creek "Hot Shale" zone through horizontal drilling and multistage frac completions.
Controlling Land Position
PetroFrontier has an average working interest of 87.1% in 14.1 mm gross acres of land in what
management believes to be the most prospective hydrocarbon region of the Southern Georgina Basin.
The hydrocarbon window within these lands ranges from oil mature to gas mature. These lands cover four Exploration Permits: EP 103, EP 104, EP 127 and EP 128. The permits are relatively close to oil and gas markets and infrastructure with a gas pipeline to the north coast, rail connections north and south and public roads to a refinery at Alice Springs.
When they frac these wells in the 3rd qtr. and if successful PetroFrontier will simply have a massive discovery on their hands, the large land position is like owning an entire shale
formation in North America and those have created $billion on market valuation for N American oil&gas companies
The stock has potential to go up in value between 10 and 100 times
MANAGEMENT
PFC has a very high profile and experienced management team, including a couple of top ExxonMobil people former CEO of Talisman Energy, Husky Oil and much more, see below
Paul J. Bennett, President, CEO & Director has been the with PetroFrontier since its formation on February 6, 2009. Mr. Bennett has over 39 years of experience in geoscience, mining and oil and gas exploration, development and producing. Prior to joining PetroFrontier, he held executive and senior management positions with ExxonMobil in the United States, the United Kingdom and Canada. In these roles, he supervised technical, geological and geophysical teams in the Gulf of Mexico, the North Sea, Western Canada, Newfoundland and Nova Scotia. He is a Director of Uranium Participation Corp. and Armistice Resources Corp.
Mr. Bennett holds an Honours Bachelor of Science degree in geology and a Master of Science degree in Geology both from the University of Toronto. He is a member of the Alberta Association of Professional Engineers, Geologists and Geophysicists (APEGGA).
Earl Scott Chief Operating Officer is the newest member of the senior management team. Mr. Scott brings extensive knowledge of drilling, completions, production operations, project management and facilities through 25 years of experience in the oil and gas industry. From 2010 until present, Mr. Scott was a consultant employed as Vice President, Operations for Red Rock Energy and Kurdistan Project Manager for Western Zagros, both in Calgary, Alberta. Prior to 2010, Mr. Scott held various roles including Vice President, Engineering and Operations with BG Canada Exploration Inc and as a technical consultant to ExxonMobil Canada based in Calgary, Alberta. Mr. Scott has held a range of increasingly progressive technical leadership roles in Malaysia, France, Venezuela, Ecuador and Canada with companies such as Exxon, Schlumberger, AEC International and BG Group. Mr. Scott is
a professional engineer and has a Bachelor of Science degree in Mechanical Engineering from the University of Calgary.
Shane J. Kozak Chief Financial Officer, V.P. Finance & Corporate Secretary Mr. Kozak has held senior finance positions with both public and private companies including Rodinia Oil Corp., Keyera Facilities Income Fund, Win Energy Corporation and Severo Energy Corp. Mr. Kozak holds a Bachelor of Commerce degree from the University of Calgary and is a member of the Institute of Chartered Accountants of Alberta.
Robert J. Iverach, Q.C., ICD.D has been the Chairman of the Board and a Director of PetroFrontier since its incorporation. Mr. Iverach is also the Chairman of the Board of Rodinia Oil Corp., a Director of Veresen Inc. and Counsel with the law firm Burstall Winger LLP. Previously Mr. Iverach was a founding partner of the tax law firm Felesky Flynn LLP, where he practiced for 27 years before retiring in 2005. Mr. Iverach holds a Bachelor of Arts degree from the University of Calgary, a Bachelor of Laws degree from the University of Alberta and a Master of Laws degree from the London School of Economics. He is currently an Examiner for the Institute of Corporate Directors.
Dr. James W. Buckee has been a Director of PetroFrontier since its formation on February 6, 2009. Before joining PetroFrontier, Dr. Buckee served as the President and Chief Executive Officer of Talisman Energy (formerly BP Canada Inc.), a position he held for 15 years before retiring in October 2007. Prior to his executive tenure with Talisman, Dr. Buckee held several international petroleum engineering positions with BP Oil, Shell International and Burma Oil. Dr. Buckee holds a Bachelor of Science degree in Physics from the University of Western Australia and a doctorate in Astrophysics from Oxford University.
Kent Jespersen has been a Director of PetroFrontier since its formation on February 6, 2009. He currently serves as Chair and Chief Executive Officer of La Jolla Resources International Ltd. Before joining AEC, Mr. Jespersen also brings to PetroFrontier generous board experience and is currently Chairman of Orvana Minerals and a Director of TransAlta and Canelson Drilling. Before joining PetroFrontier, Mr. Jespersen served as the President of Foothills Pipelines Ltd. and later NOVA Gas International Ltd., where he led the non-regulated energy services business (including energy trading and marketing) and all international activities. Previously, Mr. Jespersen held senior management positions with Husky Oil Ltd.
Martin P. McGoldrick has been a Director at PetroFrontier since its formation on February 6, 2009. With over 30 years of experience in oil and gas investment banking and international oil and gas exploration and development, Mr. McGoldrick has held various senior management positions within the energy industry, including senior roles with Bow Valley Industries Ltd. and TransAlta Corporation. Prior to joining PetroFrontier, he served as Senior Vice President and Director, Investment Banking of Jennings Capital Inc., until his retirement in July 2006. Mr. McGoldrick graduated with a Bachelor of Electrical Engineering degree from the College of Dublin, Ireland and holds a Master of Business Administration with a specialization in Finance from the University of Calgary. He is a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA).
Donald J. Rae has been a Director of PetroFrontier since August 24, 2010. Mr. Rae has more than 30 years of diversified experience in the oil and gas industry. He is currently the President and Chief Officer of Coral Hill Energy Ltd., a private corporation and prior to that he was the President and Chief Executive Officer of Wave Energy Ltd. (purchased by Crescent Point Energy Corp. in October 2009) and Senior Vice President, Exploration of Penn West Petroleum Ltd. Mr. Rae was instrumental in the utilization of the Packers Plus multi-stage frac'ing technology in the lower Shaunavon (Saskatchewan, Canada) while at Wave Energy, well before that technology was being applied in the Bakken.
The Statoil farm-in agreement
Statoil Australia Oil & Gas AS, a wholly owned subsidiary of Statoil ASA of Norway, Statoil and
PetroFrontier will each contribute $25-million (U.S.) to PetroFrontier's current 2012/2013 phase 1 exploration program. PetroFrontier is being credited with exploration expenditures already incurred in 2012. Upon completion of phase 1, Statoil may elect to commit to phase 2 or withdraw completely whereupon Statoil will have earned no working interest in the lands.
Upon committing to phase 2, Statoil must pay $25-million (U.S.) to PetroFrontier and commit to spend 80 per cent of the next $100-million (U.S.) in the phase 2 program. Only at that time will Statoil have earned a 25-per-cent interest in PetroFrontier's acreage. In summary, to complete phase 2, Statoil must spend $50-million (U.S.) and commit to spend an additional $80-million (U.S.) to earn an initial 25-per-cent interest in the lands.
During phase 2, which is scheduled to occur during calendar years 2014 and 2015, PetroFrontier's $20-million (U.S.) exploration contribution will be financed out of the $25-million (U.S.) paid to it by Statoil. Furthermore, if Statoil elects to proceed with phase 3, which is expected to occur during calendar 2016 and beyond, PetroFrontier will not be required to contribute any additional funds until Statoil has spent the next $80-million (U.S.). Since PetroFrontier's net exploration costs to the end of phase 3 will only be $20-million (U.S.) (during which time Statoil's commitment will be $210-million (U.S.)), PetroFrontier will not require additional equity financing to meet its obligations under the farm-in agreement to the end of phase 3.
Statoil's involvement validates PetroFrontier's understanding of the exploration potential of the
Southern Georgina basin, and will allow PetroFrontier to more rapidly explore and develop its
exceptionally large acreage position of over 14 million acres. Statoil brings exceptional technical
capabilities, being currently heavily involved in North American unconventional resource plays such as the Bakken, Marcellus and Eagle Ford plays.
"With success, the full value of this farm-in agreement will be captured and we are committed, in
partnership with PetroFrontier, to realizing the potential of the Southern Georgina basin. We look forward to the possibilities," said Vidar Skjaeveland, Statoil's vice-president, new ventures.
Financial
Previous financing in 2010 was $58M at $2.00 per share. As mentioned above PFC is completely carried through this exploration/development program and has approx. $18 million cash and no debt.
Summary
PFC has just spudded the 3rd well, Owen-3 that will test the unconventional potential of the primary target zone, the Lower Arthur Creek hot shale, in the Toko synclinal area. Owen-3 will be drilled to an estimated depth of 1,280 metres, through the Lower Arthur Creek hot shale formation and core/log the well before deviated horizontally for approximately 1,000 metres into the primary target zone.
Drilling of Owen-3 is expected to take four to five weeks.
Fracture stimulation update
Following the drilling of Owen-3H, PetroFrontier intends to conduct a 10-stage fracture stimulation program at each of its three wells in the following order: MacIntyre-2H, Baldwin-2Hst1 and Owen-3H.
In order to maximize operational efficiencies, the wells will then be flow tested in the reverse order. PetroFrontier can flow test all of these wells, which is expected to occur over the next few months and prior to the onset of the local Australian wet season.
So we are at the point where the rubber meets the road and over the next few months we will know if this turns into a major new shale discovery.
There is good gas infrastructure nearby but oil infrastructure will need some development. Remember that Australia imports about 50% of their oil and if this shale proves up we will likely see a major rush and area play into these Australian shales. It will be huge news in the oil industry and PetroFrontie would be the darling of this play.
T
hat's where I see the potential of PFC as another Ultra Petroleum, hundreds of wells could be drilledinto their properties.
There is a good chance that PFC will be bought out before all the development but if they hit here.
PetroFrontier TSXV:PFC Recent Price $0.75
Just after I hit the send button on my report, I seen the news that the $15 million bought deal financing was canceled. I don't think this changes things much at all. I think we seen a knee jerk reaction sell off in the stock down about 10 to 15 cents, but short term nothing has changed. It did provide us a good buying opportunity.
PFC is financed for this year and exploration program so we will still see the results of the 3 wells and whether there is a discovery or not. It might be a blessing that they do not finance now. If they wait for results and they are good and by then markets will have likely improved they may be able to finance at higher prices.
The risk is they run into difficulties or delays and may have to finance under more difficult conditions.
Simply one never knows, that is the name of the game in exploration, but I do think the odds of
success are very good with this one. I don't think canceling of the finance had anything to do about the due diligence or prospect of PFCbut is more likely a function of the weak financial markets now. Perhaps MacQuarie figured they couldeasily raise this money and found out they could not?
Also I did not disclose in my write up that I do currently own 20,000 shares of PFC.
Statoil (Bakken) and PetroFrontier (PFC.V)
Statoil Expects to Enter New Shale Plays in 2012
by Dow Jones Newswires
|
Kjetil Malkenes Hovland
|
Thursday, August 30, 2012
STAVANGER - Statoil ASA, the Norwegian oil giant, said Thursday it was looking to enter new shale plays as it eyes early moves in a nascent global "land grab" for shale oil and shale gas resources.
Statoil wouldn't say which countries it was currently exploring but presented an optimistic view on the role for shale oil and shale gas worldwide, amid a U.S. shale "revolution" that could significantly reduce the country's energy import needs. The shale boom could also affect other regions, Statoil said.
"There are many interesting countries," said Atle Rettedal, Statoil's senior vice president Global New Ventures, adding an announcement will be made "in the relatively near future," likely later this year.
"There is a global land-grab going on," Mr. Rettedal said during a press conference at the Offshore Northern Seas oil event in Stavanger, on the south-west coast of Norway.
Some countries might have shale resources "the size of the U.S., or even more," Mr. Rettedal said, adding that "the importance of shale shouldn't be underestimated" and it will likely "play a very important role in the supply of oil and gas in the decades to come."
In the U.S., shale gas is likely to account for 49% of total natural gas production by 2035, according to the Energy Information Administration, but globally the exploration of shale oil and shale gas resources is at a very early stage. At the end of 2011, Statoil said, the U.S. had drilled more than 32,500 shale gas wells, but Canada had only drilled 1,400, South America about 30, Australia 15, China about 60, and in all of Europe just 35 wells had been drilled.
[b[color=red]]Statoil is exploring shale resources in Australia's Northern Territories in a joint venture with Petrofrontier Corp., spending at least $25 million in the hope of finding shale oil, Mr. Rettedal said. The company is also entering the Stavropol shale play near the Caspian Sea, in cooperation with Russia's state-controlled giant OAO Rosneft."We'll likely move on to drill wells next year," said Mr. Rettedal.[/color]Statoil has tried to enter Chinese shale plays, but has found the climate difficult since the Norwegian Nobel committee awarded the 2010 Peace Prize to Chinese dissident Liu Xiaobo.
"China potentially has a lot of shale [resources]. But we haven't been in position yet," said Mr. Rettedal. "The Nobel prize has had an effect on the Norway-China relationship."
Statoil has recently entered several U.S. shale plays. It became a partner in the Marcellus play in 2008, moved into Eagle Ford as an operator in 2010, and entered Bakken in 2011.
Statoil aims to produce a total 2.5 million barrels of oil equivalent per day in 2020, from 1.9 million barrels per day in 2010, and international production is a significant part of that. In the U.S., Statoil aims to increase its onshore and offshore production to 500,000 barrels per day from 100,000 barrels per day. Statoil's U.S. production is currently 60% shale gas and 40% shale oil.
Like other companies in U.S. shale plays, Statoil has been affected by lower natural-gas prices caused by the recent ramp-up in U.S. production.
"The development in gas prices has been negative for the last couple of years, but we believe it will turn," said Torstein Hole, Statoil's senior vice president U.S. onshore, in an interview.
Statoil's shale oil production is "quite competitive" against the rest of its portfolio," said Mr. Hole. "We have said that we have [a break-even cost of] about $50 and $60 a barrel for our Bakken production. With the current price level, that's good."
Porto Energy Summary
Porto Energy Corp. (PEC.V or PNRXF) is an international oil and gas company engaged in the exploration of crude oil and natural gas in Portugal , including the appraisal of a gas discovery. Through its wholly owned subsidiary, Mohave Oil And Gas Corporation (a Texas corporation with branch offices in Portugal ), the Company holds working interests in seven concessions in Portugal's Lusitanian Basin totaling approximately 1.9 million net acres. Through its exploration efforts to date, the Company has identified seven major exploration trends over its concessions including unconventional oil and gas resource plays as well as conventional oil and gas targets. Porto Energy's shares trade on the TSX Venture Exchange under the ticker symbol "PEC". For more information on Porto Energy visit www.portoenergy.com.
Porto has no oil or gas production but 1.9 million acres (100% working interest) of exploration potential, joint ventures and 3D seismic.
Went public via IPO March 28, 2011 raising $ 70 million at $ 1 share via Raymond James, TD Securities and Haywood.
Porto Energy Presentation August 15 in Denver--good presentation --one of Porto's JV partners GALP ($ 10 billion market cap) happens to own all the infrastructure (pipelines and refinery) in area that they will be drilling --Also note that Porto retains 50% interest !!
http://www.investorcalendar.com/IC/CEPage.asp?ID=169369&CID=
http://www.jenningscapital.com/reports/PEC20120725Initiating.pdf
PORTO ENERGY CORP. 12-Month Target: C
.40
(TSXV-PEC C
.07) Risk Rating: ABOVE AVERAGE
INITIATING COVERAGE
TAPPING THE EXPLORATION POTENTIAL IN PORTUGAL’S LUSITANIAN BASIN
§ Well rounded exploration portfolio in Portugal, with exposure to over 950 MMBOE of resources. Porto’s lands themselves have been assigned over 2.5 billion BOE of contingent and prospective resources – our 953 MMBOE estimate is after the effects of existing and anticipated farm-outs. On a risked basis, we reckon the Company will eventually find 184 MMBOE, giving a value (ExNAV) of $5.70 per share. (pages 3, 8, 9)
§ Portuguese fiscal regime and world prices result in excellent economics. Portugal imports substantially all of its oil and gas requirements, so is accustomed to market prices. Royalties top out at 9% for oil and 7% for gas, and income taxes are 29%. We estimate that this will result in after-tax netbacks of over $47/Bbl and $5/Mcf for oil and gas, respectively, with recycle ratios between 2.2x and 4x, depending on the play. (pages 4, 6, 10)
§ Alcobaça #1 well to spud in late August, testing a 588 Bcf prospect. Alcobaça is a pre-salt Triassic aged anticline with four way dip closure. If successful, we estimate that this prospect could add 294 Bcf (PEC WI) and over $2.00 per share in NAV (although additional appraisal wells will be required to fully validate those volumes). There is transportation infrastructure in the area with spare capacity, and we would look for production to commence as early as mid-2013. (pages 9, 17-19)
§ Lias stratigraphic drilling program to set up appraisal wells in early 2013. Porto’s JV partners will carry the Company’s share on an $11 million program that includes a 19-well program during Q3 and two appraisal wells in early 2013. This regional play has unrisked potential for 748 MMBOE (197 MMBOE PEC WI after expected farm-outs). (pages 9, 19-20)
§ Seeking joint venture partners to help fund exploration and appraisal program. Porto has already executed two such agreements for the Aljubarrota block and the Lias interval over several other concessions. It continues to run data rooms to attract potential partners for the rest of its blocks. (pages 5, 13, 14-16)
We are initiating coverage on Porto Energy Corp. with a SPECULATIVE BUY recommendation and 12-month target price of C
.40 per share.
MARK HODGSONVP BUSINESS DEVELOPMENTWITH BANKERS PETROLEUM http://treasurepicks.blogspot.com/2012/02/bnk-t-bnk-l-mark-hodgson-vp-talks-to.html
"All indications from new production coming on near Cushing seems to point toward that differential staying strong in the months to come. It makes what we are doing in Europe all the more attractive.As for a stock pick, I’d have to say Porto Energy. Joe Ash and the team have got some great exciting wells coming up,and with the shares down to
.15 from their $1.00 IPO, the risk/reward is more compelling than ever."
Webcast
Porto Energy Corp., (" Porto " or the "Company") (PEC.V), announced today that Mr. Joseph Ash , President and CEO, will present a corporate overview of the Company at the EnerCom Oil and Gas Conference in Denver , Colorado on Wednesday, August 15, 2012 at 3:35 p.m. MDT (5:35 EDT).
A webcast of the presentation will be available at:
http://www.theoilandgasconference.com/webcast.shtml
A copy of the presentation will be posted to the Porto Energy website at: http://www.portoenergy.com/investorpresent.html.
http://www.portoenergy.com/files/Porto 20120803.pdf
3D Seismic by Porto Subsidiary Mohave
Porto Energy Thank you. Hardly the digs for "award winning principals" as the press release called them. There has to be more to this. Perhaps Chen knows more?
Who the heck is Black Goose Spruce Merchant Capital? Why would Porto Energy even need them?
PetroFrontier TSXV:PFC Recent Price $0.75
Just after I hit the send button on my report, I seen the news that the $15 million bought deal financing was canceled. I don't think this changes things much at all. I think we seen a knee jerk reaction sell off in the stock down about 10 to 15 cents, but short term nothing has changed. It did provide us a good buying opportunity.
PFC is financed for this year and exploration program so we will still see the results of the 3 wells and whether there is a discovery or not. It might be a blessing that they do not finance now. If they wait for results and they are good and by then markets will have likely improved they may be able to finance at higher prices.
The risk is they run into difficulties or delays and may have to finance under more difficult conditions.
Simply one never knows, that is the name of the game in exploration, but I do think the odds of
success are very good with this one. I don't think canceling of the finance had anything to do about the due diligence or prospect of PFCbut is more likely a function of the weak financial markets now. Perhaps MacQuarie figured they couldeasily raise this money and found out they could not?
Also I did not disclose in my write up that I do currently own 20,000 shares of PFC.
My Write Up
Australian Bakken Play ---PetroFrontier teamed with Norwegian Statoil (Acquirer of Bakken Brigham Exploration October 2011 $ 4.4 Billion) on June 20, 2012
PetroFrontier is an international oil and gas company engaged in the exploration, acquisition and development of both conventional and unconventional onshore petroleum assets in Australia’s Southern Georgina Basin.
PetroFrontier’s common shares are listed on the TSX Venture Exchange under the symbol “PFC” or in U.S. "PFRRF" Petrofrontier holds 75% to 100% interest in Georgina exploration permits EP 103,104,127 and 128, in addition to pending exploration permits. totaling over 14 million acres.
PetroFrontier Corp. –Enormous Australian land position averaging 87% working interest on 14.1 million acres. Will use horizontal drilling and multistage frac technology.
PetroFrontier teamed up with International oil company Statoil recently on June 20, 2012 in farm-in arrangement. The 67% owned by Norwegian government Statoil is the world leader in shale resources such as PetroFortier’s South Geogina Basin.
Where are Statoil’s shale resources Marcellus/Eagle Ford/Bakken?
http://www.statoil.com/en/ouroperations/explorationprod/shalegas/pages/where.aspx
The ink was barely dry on the transaction and Statoil with a $ 74 billion market cap was talking about Australia:
http://www.ogj.com/articles/print/vol-110/issue-07/general-interest/statoil-plans-to-triple.html
“Separately, Statoil announced plans to partner with Canada's PetroFrontier Corp. on four exploration permits and two exploration permit applications in the southern Georgina basin in Northern Territory, Australia (OGJ Online, June 20, 2012).
Statoil said its Australia shale activities will rely on unconventional expertise it has developed in the US where it has leases in various shale plays.”
See Statoil video on shale and tight rock resources
http://www.statoil.com/en/ouroperations/explorationprod/shalegas/pages/theimportanceofshaleforstatoil.aspx
Statoil enters Australian Shale Play
http://www.statoil.com/en/NewsAndMedia/News/2012/Pages/20Jun_Australia.aspx
Other Article: http://tinyurl.com/86efdoh
PetroFrontier headed up by fomer ExxonMobil geologist Paul Bennett
Stock of PetroFrontier is near 52 week lows.
Of interest: PetroFrontier has drilled three vertical wells and is in process of completing the horizontal legs of these three wells. Fracing will occur over next few months. When PetroFrontier was searching for a farm-in partner all the data and logs associated with these three wells was available to prospective partners including Statoil.
Shallow target depth: 2,000 to 4,000 feet (600 to 1200 meters)
Founded in 2009, PetroFrontier is one of the first companies to undertake onshore exploration in the Southern Georgina Basin in Australia’s Northern Territory. PetroFrontier’s head office is in Calgary, Alberta and its operations office is in Adelaide, South Australia.
On June 20, 2012, the Corporation issued a press release announcing the execution of the Farmin Agreement and the Offering. Pursuant to the terms of the Farm-in Agreement with Statoil Australia has the option to earn up to 65% of the Corporation's working interests in the EPs and EPAs, in exchange for Statoil Australia's contribution of up to US$210,000,000 in exploration program related payments and carried costs over three phases of the Farmin Agreement. See articles and press releases
Ryder Scott, geological and reservoir engineers, assigned 26.4 billion barrels of gross prospective resources to PetroFrontier’s unconventional shale resource and 1.1 billion barrels to the conventional resource. Both management and Ryder Scott believe PetroFrontier’s shale resource is analogous to the Bakken in North Dakota or South Saskatchewan. This is a pure exploration company with all the resultant risks associated with it. Target is both light oil and natural gas.
http://finance.yahoo.com/q?s=PFC.V
52 week Price Range $ 4.24 ro $ .67
Price $.75
Market Cap $ 48 million
Cash on hand $ 17.35 Million
Shares Outstanding 63.998 million
Major Shareholders 62% Institution ownership
As of 10/13/11 per Proxy George Soros Quantum Partners 9,850,000 shares 15.4% Heritage Oil PLC 8,832,000 shares 13.8%
On July 14, 2011 Heritage Oil (HOC TSX), an international independent upstream exploration and production company , prior to start-up drilling by PetroFrontier, announced in a press release that they had acquired 10.4% interest in PetroFrontier via public market purchase (paid over $ 2.50 share).
http://www.heritageoilplc.com/
http://www.heritageoilplc.com/pdf/Heritage_Oil_April_post_2011_results.pdf
Recent PETROFRONTIER Insider Buying
Jun 28/12 Martin, McGoldrick Indirect Ownership Public market buy Common Shares 0.720 - 0.770 100,000 n/a 100,000
Owned 185,000 shares prior to purchase (excludes options outstanding).
Martin P. McGoldrick
Director
Mr. McGoldrick has been a Director at PetroFrontier since its formation on February 6, 2009. With over 30 years of experience in oil and gas investment banking and international oil and gas exploration and development, Mr. McGoldrick has held various senior management positions within the energy industry, including senior roles with Bow Valley Industries Ltd. and TransAlta Corporation. Prior to joining PetroFrontier, he served as Senior Vice President and Director, Investment Banking of Jennings Capital Inc., until his retirement in July 2006.
Mr. McGoldrick graduated with a Bachelor of Electrical Engineering degree from the College of Dublin, Ireland and holds a Master of Business Administration with a specialization in Finance from the University of Calgary. He is a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA).
Date Insider Name Ownership Type Nature of Transaction Security Price ($) Units Change* Account Balance
Jun 28/12 Scott, Earl Patrick Direct Ownership Public market buy Common Shares 0.690 50,000 n/a 50,000
Earl Scott
Chief Operating Officer
Mr. Scott is PetroFrontier's Chief Operating Officer and, as of February 1, 2012, is the newest member of the senior management team. Mr. Scott brings extensive knowledge of drilling, completions, production operations, project management and facilities through 25 years of experience in the oil and gas industry. From 2010 until present, Mr. Scott was a consultant employed as Vice President, Operations for Red Rock Energy and Kurdistan Project Manager for Western Zagros, both in Calgary, Alberta. Prior to 2010, Mr. Scott held various roles including Vice President, Engineering and Operations with BG Canada Exploration Inc., and as a technical consultant to ExxonMobil Canada based in Calgary, Alberta. Mr. Scott has held a range of increasingly progressive technical leadership roles in Malaysia, France, Venezuela, Ecuador and Canada with companies such as Exxon, Schlumberger, AEC International and BG Group.
Mr. Scott is a professional engineer and has a Bachelor of Science degree in Mechanical Engineering from the University of Calgary.
PDF Presentation Note Slide 12 pipeline Darwin LNG
http://www.petrofrontier.com/en/presentations/pfc_-_investor_presentation_may_2012.pdf?PHPSESSID=6iochvq7ql5ekr0rt503hkjn80
Petrofrontier presentation at First Energy May 15, 2012 before Statoil Farm-in on June 20, 2012
http://jetslides.tv/lobby/721
Comparison to Bakken
http://www.petrofrontier.com/en/documents/PFC-2011-03-21-analystcoverage-JenningsCapitalInc.pdf?PHPSESSID=8f6jvqfuiaip6vjmrg675cqua1
More Statoil
Statoil is 67% owned by the Norwegian government and has a market cap of $ 74 billion.
Statoil has stated that development and production of oil from shale and tight rock resources has begun to transform the global energy outlook.
Statoil’s shale and tight gas and oil business began in the US through active partnerships in the Marcellus play along the eastern seaboard, the Eagle Ford play in south Texas, and our own operatorship of tight oil activities in North Dakota and Montana in the Bakken play.
Statoil has farmed into Petrofrontier's four existing Exploration Permits (EP 103, 104, 127 and 128) as well as pending exploration permits (213 and 252) in the South Georgina Basin in Australia's Northern Territories in a Joint Venture project.
This is an early entry at scale into over 14 million acres of immature, but potentially highly prospective play at low cost, with high risk but also with significant upsides.
Through a step-wise exploration programme the partners will potentially drill 10-20 wells by 2017 in three phases to demonstrate prospectivity.
Petrofrontier will operate the first phase of the programme while Statoil has secured options to operate from the second exploration phase in addition to increase ownership interests from 25 to 65% of Petrofrontier's interests.
Statoil has committed to contribute USD 25 million for the first phase of the exploration programme. This figure could escalate to USD 200 million through a phase two and three depending on exploration results.
Statoil Video
http://www.statoil.com/en/ouroperations/explorationprod/shalegas/pages/theimportanceofshaleforstatoil.aspx
"We are very excited to announce this farm-in agreement with Statoil. Statoil is a highly regarded international exploration company, actively involved in major unconventional plays and brings exceptional financial resources and technical capabilities to our new relationship" says Paul Bennett, President and CEO of PetroFrontier. "We believe that partnering with a global leader like Statoil validates the potential of our assets and the exploration work we have completed to date."
PetroFrontier Corp.
Susan Showers
Manager, Investor Relations
(403) 718-0366 or Toll Free: (877) 822-7280
(403) 718-3888 (FAX)
info@petrofrontier.com
www.petrofrontier.com
Ink barely dry on PetroFrontier transaction and Statoil is out talking about the transaction…..Unusual for a $ 74 Billion market cap company…..
"Statoil said its Australia shale activities will rely on unconventional expertise it has developed in the US where it has leases in various shale plays."Close
Statoil plans to triple North America production by 2020
07/02/2012
By Paula Dittrick
Senior Staff Writer
Statoil plans to boost its US and Canada production to 500,000 boe/d by 2020 compared with its current 149,000 boe /d, and the company continues shifting its focus from natural gas toward more liquids-rich plays, executives told investors in New York on June 20.
Most increa
sed production will come from US operations in the Marcellus, Eagle Ford, and Bakken shale plays, said Bill Maloney, executive vice-president and head of Statoil's Development and Production, North America.
Successful start-up of the Statoil-operated Leismer project in Canada and continued ramp-up of production in US shales and tight oil plays are key components behind Statoil's recent production growth, he said.
Separately, Statoil announced plans to partner with Canada's PetroFrontier Corp. on four exploration permits and two exploration permit applications in the southern Georgina basin in Northern Territory, Australia (OGJ Online, June 20, 2012).
Statoil said its Australia shale activities will rely on unconventional expertise it has developed in the US where it has leases in various shale plays.
Noting an emphasis on liquids, Statoil currently operates about 20 rigs in the Marcellus gas play compared with 36 rigs at yearend 2011.
"We've brought the rig count down," in the Marcellus and diverted some of Statoil's drilling capital to the Bakken oil formation in North Dakota and Montana, he said. Statoil obtained Bakken acreage last year with its acquisition of Brigham Exploration Co.
This year, Statoil is assembling an operational organization in Houston for its South Texas Eagle Ford operations, he said.
"Safe and responsible development of new US onshore resources is strongly underpinning the growth strategy," Maloney said. "We now have production from more than 1,000 wells and hold more than 1 million net acres in three of the best US plays."
Offshore, Maloney said Statoil expects to produce 100,000 boe/d from the deepwater Gulf of Mexico by 2020, double the company's current output.
Statoil operates about 30 rigs in the gulf. Plans to double deepwater production will involve the addition of four rigs this year and another 12 next year, the company said.
In its long-term economic and energy outlook released June 21, Statoil expects global energy demand to increase by more than 40% by 2040 with fossil fuels accounting for most of the increase.
"Our assessment suggests that global growth will continue at an average of 2.8% per year over the coming 3 decades. This is close to the average of the previous 30 years, even though we expect a gradual slowdown in growth towards 2040," says Statoil Chief Economist Klaus Mohn.
Global oil demand is expected to reach a plateau by 2030 with natural gas seen as the fuel of the future, he said.
In aggregate, the fossil fuel share of the global energy mix is expected to drop from 81% in 2010 to 73% in 2040.
http://www.ogj.com/articles/print/vol-110/issue-07/general-interest/statoil-plans-to-triple.html
Australian Bakken PetroFrontier, PFC / STATOIL
Resource Stock Update V18 # 8.1
Australian Bakken PetroFrontier, PFC / STATOIL July 10, 2012
Ron Struthers 505 Cummer Ave Apt 311 Toronto Ont. M2K 2L8
Yearly subscription $225 cdn /year or US$225
The Oil Stock to own- No doubt you have heard how the large shale finds, like Marcelus in North America are discovering huge quantities of gas and oil and in fact it has changed the Nat Gas market in North America. I found a company that has discovered a new shale 3 times richer than the ones in North America. And this little company owns the whole shale. This little company could easily make a profound change to the world oil market. In fact a major oil company has already bought 14% of this company on the open market and one of the most famous investors in the world (George Soros) has also bought up over 6% on the open market.
They have drilled 2 wells, the 2nd called MacIntyre-2H reached a total measured depth of 1,916 metres and stayed within the primary target zone, the Lower Arthur Creek hot shale Formation, for approximately 1,080 metres, recording positive hydrocarbon indications along the entire length of the horizontal section.
A multistage open-hole completion string will now be placed in the well before the drilling rig moves on to drill the third horizontal well, Owen-3. Thereafter, a fracture stimulation program is expected to be carried out at each of Baldwin-2Hst1, MacIntyre-2H and Owen-3H.
This is the biggest opportunity I have seen in oil&gas since Ultra Petroleum where we made up to 9800%, no not a misprint, with stock splits $0.50 to about $50.
I have been following this play for about 4 years and am making you aware of PetroFrontier now
because all the right pieces have fallen into place, including the lowest, best buy in the stock price.
They are drilling the 3rd well, with a frac on all 3 wells to follow next, so the big results on whether a discovery is proven is yet to come, doing 3 wells improves the odds of success. At least one well should work, probably two and good odds for all three.
This is an enormous play, they have an average 87.1% interest in 14 million acres so bringing in a senior partner with deep pockets was key, so 2 weeks ago was announced that StatOil will spend $50 million and commit to an additional $80 million to earn an initial 25% and up to $210 million to earn 65%.
StatOil is an expert in shale oil&gas plays with significant participaton in 3 of the major North
American shales, Marcellus, Eagle Ford and Bakken. They know good shale prospects when they see them so this is a big vote of confidence for PetroFrontier.
http://www.statoil.com/en/OurOperations/ExplorationProd/ShaleGas/Pages/Where.aspx
Some excerpts from an article by EnergyNewsPremium.net
“TSX-listed PetroFrontier Corporation and Statoil announced this week the Norwegian energy giant would spend up to $US210 million to earn a 65% interest in six PetroFrontier permits over half of the southern Georgina Basin.
It’s the biggest farm-in deal yet involving a big international company over unconventional targets in Australia.
Statoil has committed to spend more than Hess, Mitsubishi and ConocoPhillips in their respective farm-ins by a wide margin.
The deal proves Statoil is a believer in the liquids-rich potential of the Georgina Basin, highlighted in a Ryder Scott report released by PetroFrontier in late 2010.
Ryder Scott found PetroFrontier’s four granted permits had strong similarities to the Bakken oil shale in North America. It estimated potential recoverable oil (P50 case) of 1.1 billion barrels from conventional targets and a whopping 26.4 billion barrels from shale oil horizons.
The new deal with Statoil locks in a big budget to test this potential, and quickly. For PetroFrontier, headed by former ExxonMobil geologist Paul Bennett, it has been a hugely successful exercise in adding value.”
Total investment by 2016 will be 230 million by Statoil and PFC.
By that time, I am convinced this will be a huge discovery, based on preliminary data Ryder Scoot estimates at 26.1 billion barrel potential.
Strong balance sheet $18 million cash
PetroFrontier TSXV:PFC Recent Price $0.77
52 week trading range $0.67 to $4.24
Shares Outstanding 64 million
Management 6.2%
Institutions about 63% Including:
George Soros Fund 6.2%, Epic Capital 10.6%
Heritage Oil TSX: HOC 14.1%
There are 5.7 million options at an average of 1.87, most above $2.00 with 1.2 million at 1.00 to 1.20 and just 220,000 at 0.25
Highlights
87% average W.I. In 14.1 Million gross acres in Georgina Basin, Australia
• EP 103/104 = 100% W.I.
• EP 127/128 = 75% W.I.
• EPA 252/213 = 100% W.I.
Geologically analogous to North America Shale plays, and shallow depth 600 – 1,200 meters utilizing horizontal drilling and multistage frac technology
Unconventional Oil Rich Zone
• 13 old wells identified with prospective oil rich zones
• PetroFrontier is first to horizontally drill and multi-stage frac in the Northern Territory,
Australia
Conventional Carbonate Zones
• Live oil shows identified in 11 wells, some with high background gas
• Untested potential bypassed oil pay zones identified in several old “dry holes”
Oil Resource 26.4 BBbl Ryder Scott evaluation in Nov 2010
• Biggest play risk is technical and economic (engineering)
Almost ¼ billion exploration phase by a major (expert in shale) StatOil where PetroFrontier is carried so no share dilution. Strong financial position with an expert management team.
Company/Property
PetroFrontier is an oil and gas company exploring for both conventional and unconventional onshore petroleum and natural gas in the Northern Territory, Australia. PetroFrontier is one of the first companies to undertake extensive exploration in the Southern Georgina Basin.
Founded in 2009, the first two years of operations concentrated on amassing a large land position, which currently sits at 14.1 million acres with an 87.1% working interest within four exploration permits. A drilling program commenced in late 2011 targeting significant unconventional hydrocarbon potential.
Headquartered in Calgary, Alberta, Canada, PetroFrontier employs a highly experienced management team and Board of Director with expertise in international oil and natural gas exploration and development.
Australia’s 30 on-shore drilling rigs are dwarfed by a fleet of more than 800 rigs in Canada. The bulk of petroleum spending in OZ is directed offshore leaving only 13% for onshore exploration. Australia is an LNG exporter but imports 55% of its domestic oil demand.
Onshore Australia is a bit of what Canada was like in the 1960s; huge tracts of unexplored land in hydrocarbon-prone basins. The Southern Georgina Basin is one of Australia's last virtually unexplored onshore sedimentary basins encompassing 100,000 square km and nearly 25 million acres, with the potential for multi-billion barrel accumulations. It is under-explored because of the massive shift to offshore hydrocarbon exploration some 40 years ago, its vast and remote deserts, land access issues and until recently, limited access to infrastructure and petroleum services.
PetroFrontier has four onshore EPs granted by the government of Northern Territory, which are
situated over what is believed to be the most prospective part of the basin. Very few wells have been drilled within the entire Southern Georgina Basin making the basin virtually unexplored by North American standards. Within and in the vicinity of PetroFrontier's four EPs and two EPAs a total of only twenty nine wells have been drilled, including twinned wells. The existence of giant oil and gas fields in Neoproterozoic/Cambrian rocks in Russia (Siberia) and in the Middle East (Oman), with recoverable oil reserves in the billions of barrels, has resulted in renewed exploration interest in other similar aged basins throughout the world. Also the great technical advances and widespread success in horizontal drilling and multistage fracture stimulation of unconventional oil shale plays in North America has made international "Hot Shale" zones, like the Arthur Creek found in the Southern Georgina Basin, valuable exploration prospects. The Southern Georgina Basin, onshore Australia, hosts high quality source beds and potential conventional and unconventional reservoir rocks.
Management of the Corporation believes that this basin is one of the most prospective onshore basins in Australia with potential for both very large conventional and unconventional oil and gas deposits.
PetroFrontier has a massive contiguous land position in the Southern Georgina Basin and access to potentially significant oil and gas reserves at relatively low exploration and drilling costs. To identify prospects, PetroFrontier is applying world-class geophysical techniques and seismic data under the guidance of experienced North American and Australian exploration experts.
Exploration is centered on leading edge drilling technologies. PetroFrontier is the first company in Australia to use unconventional horizontal drilling and open hole multi-stage facture stimulation techniques, both of which have unlocked tremendous production volumes from unconventional plays in North America.
Drilling start-up in 2011; Next Steps in 2012
PetroFrontier initiated its drilling campaign in August, 2011 with the drilling of one horizontal well
(Baldwin-2Hst1)and the recent completion of one other (MacIntyre-2). The third horizontal well is planned for the 3rd quarter of 2012 and should spud any day now. An independent open hole fracture stimulation program will be conducted on all three horizontal wells, and these operations should be completed by the end of the 3rd quarter 2012. This program will primarily test for economic flow rates from the unconventional Arthur Creek "Hot Shale" zone through horizontal drilling and multistage frac completions.
Controlling Land Position
PetroFrontier has an average working interest of 87.1% in 14.1 mm gross acres of land in what
management believes to be the most prospective hydrocarbon region of the Southern Georgina Basin.
The hydrocarbon window within these lands ranges from oil mature to gas mature. These lands cover four Exploration Permits: EP 103, EP 104, EP 127 and EP 128. The permits are relatively close to oil and gas markets and infrastructure with a gas pipeline to the north coast, rail connections north and south and public roads to a refinery at Alice Springs.
When they frac these wells in the 3rd qtr. and if successful PetroFrontier will simply have a massive discovery on their hands, the large land position is like owning an entire shale
formation in North America and those have created $billion on market valuation for N American oil&gas companies
The stock has potential to go up in value between 10 and 100 times
MANAGEMENT
PFC has a very high profile and experienced management team, including a couple of top ExxonMobil people former CEO of Talisman Energy, Husky Oil and much more, see below
Paul J. Bennett, President, CEO & Director has been the with PetroFrontier since its formation on February 6, 2009. Mr. Bennett has over 39 years of experience in geoscience, mining and oil and gas exploration, development and producing. Prior to joining PetroFrontier, he held executive and senior management positions with ExxonMobil in the United States, the United Kingdom and Canada. In these roles, he supervised technical, geological and geophysical teams in the Gulf of Mexico, the North Sea, Western Canada, Newfoundland and Nova Scotia. He is a Director of Uranium Participation Corp. and Armistice Resources Corp.
Mr. Bennett holds an Honours Bachelor of Science degree in geology and a Master of Science degree in Geology both from the University of Toronto. He is a member of the Alberta Association of Professional Engineers, Geologists and Geophysicists (APEGGA).
Earl Scott Chief Operating Officer is the newest member of the senior management team. Mr. Scott brings extensive knowledge of drilling, completions, production operations, project management and facilities through 25 years of experience in the oil and gas industry. From 2010 until present, Mr. Scott was a consultant employed as Vice President, Operations for Red Rock Energy and Kurdistan Project Manager for Western Zagros, both in Calgary, Alberta. Prior to 2010, Mr. Scott held various roles including Vice President, Engineering and Operations with BG Canada Exploration Inc and as a technical consultant to ExxonMobil Canada based in Calgary, Alberta. Mr. Scott has held a range of increasingly progressive technical leadership roles in Malaysia, France, Venezuela, Ecuador and Canada with companies such as Exxon, Schlumberger, AEC International and BG Group. Mr. Scott is
a professional engineer and has a Bachelor of Science degree in Mechanical Engineering from the University of Calgary.
Shane J. Kozak Chief Financial Officer, V.P. Finance & Corporate Secretary Mr. Kozak has held senior finance positions with both public and private companies including Rodinia Oil Corp., Keyera Facilities Income Fund, Win Energy Corporation and Severo Energy Corp. Mr. Kozak holds a Bachelor of Commerce degree from the University of Calgary and is a member of the Institute of Chartered Accountants of Alberta.
Robert J. Iverach, Q.C., ICD.D has been the Chairman of the Board and a Director of PetroFrontier since its incorporation. Mr. Iverach is also the Chairman of the Board of Rodinia Oil Corp., a Director of Veresen Inc. and Counsel with the law firm Burstall Winger LLP. Previously Mr. Iverach was a founding partner of the tax law firm Felesky Flynn LLP, where he practiced for 27 years before retiring in 2005. Mr. Iverach holds a Bachelor of Arts degree from the University of Calgary, a Bachelor of Laws degree from the University of Alberta and a Master of Laws degree from the London School of Economics. He is currently an Examiner for the Institute of Corporate Directors.
Dr. James W. Buckee has been a Director of PetroFrontier since its formation on February 6, 2009. Before joining PetroFrontier, Dr. Buckee served as the President and Chief Executive Officer of Talisman Energy (formerly BP Canada Inc.), a position he held for 15 years before retiring in October 2007. Prior to his executive tenure with Talisman, Dr. Buckee held several international petroleum engineering positions with BP Oil, Shell International and Burma Oil. Dr. Buckee holds a Bachelor of Science degree in Physics from the University of Western Australia and a doctorate in Astrophysics from Oxford University.
Kent Jespersen has been a Director of PetroFrontier since its formation on February 6, 2009. He currently serves as Chair and Chief Executive Officer of La Jolla Resources International Ltd. Before joining AEC, Mr. Jespersen also brings to PetroFrontier generous board experience and is currently Chairman of Orvana Minerals and a Director of TransAlta and Canelson Drilling. Before joining PetroFrontier, Mr. Jespersen served as the President of Foothills Pipelines Ltd. and later NOVA Gas International Ltd., where he led the non-regulated energy services business (including energy trading and marketing) and all international activities. Previously, Mr. Jespersen held senior management positions with Husky Oil Ltd.
Martin P. McGoldrick has been a Director at PetroFrontier since its formation on February 6, 2009. With over 30 years of experience in oil and gas investment banking and international oil and gas exploration and development, Mr. McGoldrick has held various senior management positions within the energy industry, including senior roles with Bow Valley Industries Ltd. and TransAlta Corporation. Prior to joining PetroFrontier, he served as Senior Vice President and Director, Investment Banking of Jennings Capital Inc., until his retirement in July 2006. Mr. McGoldrick graduated with a Bachelor of Electrical Engineering degree from the College of Dublin, Ireland and holds a Master of Business Administration with a specialization in Finance from the University of Calgary. He is a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA).
Donald J. Rae has been a Director of PetroFrontier since August 24, 2010. Mr. Rae has more than 30 years of diversified experience in the oil and gas industry. He is currently the President and Chief Officer of Coral Hill Energy Ltd., a private corporation and prior to that he was the President and Chief Executive Officer of Wave Energy Ltd. (purchased by Crescent Point Energy Corp. in October 2009) and Senior Vice President, Exploration of Penn West Petroleum Ltd. Mr. Rae was instrumental in the utilization of the Packers Plus multi-stage frac'ing technology in the lower Shaunavon (Saskatchewan, Canada) while at Wave Energy, well before that technology was being applied in the Bakken.
The Statoil farm-in agreement
Statoil Australia Oil & Gas AS, a wholly owned subsidiary of Statoil ASA of Norway, Statoil and
PetroFrontier will each contribute $25-million (U.S.) to PetroFrontier's current 2012/2013 phase 1 exploration program. PetroFrontier is being credited with exploration expenditures already incurred in 2012. Upon completion of phase 1, Statoil may elect to commit to phase 2 or withdraw completely whereupon Statoil will have earned no working interest in the lands.
Upon committing to phase 2, Statoil must pay $25-million (U.S.) to PetroFrontier and commit to spend 80 per cent of the next $100-million (U.S.) in the phase 2 program. Only at that time will Statoil have earned a 25-per-cent interest in PetroFrontier's acreage. In summary, to complete phase 2, Statoil must spend $50-million (U.S.) and commit to spend an additional $80-million (U.S.) to earn an initial 25-per-cent interest in the lands.
During phase 2, which is scheduled to occur during calendar years 2014 and 2015, PetroFrontier's $20-million (U.S.) exploration contribution will be financed out of the $25-million (U.S.) paid to it by Statoil. Furthermore, if Statoil elects to proceed with phase 3, which is expected to occur during calendar 2016 and beyond, PetroFrontier will not be required to contribute any additional funds until Statoil has spent the next $80-million (U.S.). Since PetroFrontier's net exploration costs to the end of phase 3 will only be $20-million (U.S.) (during which time Statoil's commitment will be $210-million (U.S.)), PetroFrontier will not require additional equity financing to meet its obligations under the farm-in agreement to the end of phase 3.
Statoil's involvement validates PetroFrontier's understanding of the exploration potential of the
Southern Georgina basin, and will allow PetroFrontier to more rapidly explore and develop its
exceptionally large acreage position of over 14 million acres. Statoil brings exceptional technical
capabilities, being currently heavily involved in North American unconventional resource plays such as the Bakken, Marcellus and Eagle Ford plays.
"With success, the full value of this farm-in agreement will be captured and we are committed, in
partnership with PetroFrontier, to realizing the potential of the Southern Georgina basin. We look forward to the possibilities," said Vidar Skjaeveland, Statoil's vice-president, new ventures.
Financial
Previous financing in 2010 was $58M at $2.00 per share. As mentioned above PFC is completely carried through this exploration/development program and has approx. $18 million cash and no debt.
Summary
PFC has just spudded the 3rd well, Owen-3 that will test the unconventional potential of the primary target zone, the Lower Arthur Creek hot shale, in the Toko synclinal area. Owen-3 will be drilled to an estimated depth of 1,280 metres, through the Lower Arthur Creek hot shale formation and core/log the well before deviated horizontally for approximately 1,000 metres into the primary target zone.
Drilling of Owen-3 is expected to take four to five weeks.
Fracture stimulation update
Following the drilling of Owen-3H, PetroFrontier intends to conduct a 10-stage fracture stimulation program at each of its three wells in the following order: MacIntyre-2H, Baldwin-2Hst1 and Owen-3H.
In order to maximize operational efficiencies, the wells will then be flow tested in the reverse order. PetroFrontier can flow test all of these wells, which is expected to occur over the next few months and prior to the onset of the local Australian wet season.
So we are at the point where the rubber meets the road and over the next few months we will know if this turns into a major new shale discovery.
There is good gas infrastructure nearby but oil infrastructure will need some development. Remember that Australia imports about 50% of their oil and if this shale proves up we will likely see a major rush and area play into these Australian shales. It will be huge news in the oil industry and PetroFrontie would be the darling of this play.
T
hat's where I see the potential of PFC as another Ultra Petroleum, hundreds of wells could be drilledinto their properties.
There is a good chance that PFC will be bought out before all the development but if they hit here.
PetroFrontier TSXV:PFC Recent Price $0.75
Just after I hit the send button on my report, I seen the news that the $15 million bought deal financing was canceled. I don't think this changes things much at all. I think we seen a knee jerk reaction sell off in the stock down about 10 to 15 cents, but short term nothing has changed. It did provide us a good buying opportunity.
PFC is financed for this year and exploration program so we will still see the results of the 3 wells and whether there is a discovery or not. It might be a blessing that they do not finance now. If they wait for results and they are good and by then markets will have likely improved they may be able to finance at higher prices.
The risk is they run into difficulties or delays and may have to finance under more difficult conditions.
Simply one never knows, that is the name of the game in exploration, but I do think the odds of
success are very good with this one. I don't think canceling of the finance had anything to do about the due diligence or prospect of PFCbut is more likely a function of the weak financial markets now. Perhaps MacQuarie figured they couldeasily raise this money and found out they could not?
Also I did not disclose in my write up that I do currently own 20,000 shares of PFC.
<<<All total, Munro's current holdings are ~18.3M>>
If true who the heck has been selling millions of shares over last several months? Very scary.
Anyone talk with IR lately?