AI
HENC .24/AUCAF .11 - BACK in HENC on new info... still long and adding to AUCAF.
Holloman Energy Signs Memorandum of Understanding for Acquisition of Additional Australian Assets
Press Release Source: Holloman Energy Corporation On Thursday October 21, 2010, 9:00 am EDT
HOUSTON, Oct. 21, 2010 (GLOBE NEWSWIRE) -- Holloman Energy Corporation (OTCBB:HENC - News) announces execution of a Memorandum of Understanding for the acquisition of additional Australian-based exploration rights and other assets. Under the Agreement, Holloman Energy may acquire application rights in up to seven exploration permits ("EPCs') targeting 1.65 million acres with coal-seam gas potential, together with certain drilling rigs and associated drilling equipment from an affiliated company.
"It's been 8 months since extraordinary flooding halted exploration by virtually all participants neighboring our Cooper Basin concessions," stated Mark Stevenson, Holloman Energy CEO. "Some activity in the Cooper has restarted and with it, interest in our PEL 112 and PEL 444 acreage has begun to reignite. In addition, recent discussion with potential venture partners has highlighted an interest in certain Queensland-based acreage positions held by one of our affiliates," Stevenson continued. "We've watched as the market's focus on coal-seam gas has grown. We now believe it's time to add our EPC application rights to the Holloman Energy portfolio. This is the first in a series of planned steps to diversify our on-shore exploration efforts and moderate the land-access risks, such as the flooding, we've faced in the past. Having a broader on-shore portfolio is a strategy that's worked well for certain of our larger competitors, and we believe will make Holloman Energy a more attractive joint venture partner."
The Queensland, Australia-based, EPCs under application target Permian and Jurassic coals. They cover more than 1,783 sub-blocks (6,666 sq km / 1,647,070 acres) largely in the Adavale Basin area. If the acquisition is finalized, the Company will undertake additional studies to determine whether economics support its pursuit of an Authority To Prospect for coal-seam gas resources. The inventory of drilling assets includes three drill rigs, a vehicle fleet and certain camp support equipment. Holloman Energy is performing a detailed review to determine what portion, if any, of the equipment inventory suits its current needs.
The Agreement between Holloman Energy and its affiliate sets an acquisition price that approximates the cost basis of the individual assets selected for acquisition. The Agreement is subject to standard contingencies including; the completion of satisfactory due diligence, definitive agreements, and required approvals.
About Coal-Seam Gas
What is coal-seam gas?
Coal-seam gas (CSG) is a form of natural gas trapped in the molecular structure of coal beds. The gas is usually produced from coal that is either too deep or of too low quality to be mined commercially.
In contrast, conventional natural gas is stored in the gaps between rock formations. As a result, coal-seams can contain significantly higher quantities of gas than are found in conventional reservoirs.
Q: How do you produce coal-seam gas?
The process begins by drilling a well up to 600 meters below ground. The top section is cased with steel and cement and a special rotating blade is lowered to the bottom section to dig cavities in the coal-seams.
Water and gas are pumped from the well and extracted using separate pipes. The gas is cleaned, processed and compressed before being fed into commercial pipelines.
Q: Why is there such interest in the industry in Australia?
In the past decade, CSG has become an important source of energy in America as conventional gas reserves have been depleted and the technology to extract CSG has improved.
It is now taking off in Australia, where huge reserves exist and where there is a vast and growing market for energy exports to nearby China and southeast Asia. CSG now represents 40 per cent of Australia's onshore gas reserves.
Oil companies such as BG Group, ConocoPhillips and Petronas have all invested in Australia's coal-seam gas industry in recent months.
Additional information on CSG:
Coal-Seam Gas Producers - The New Masters Of The Universe?
http://peakenergy.blogspot.com/2008/10/coal-seam-gas-producers-new-masters-of.html
Coal-Seam Gas Poised to Explode in Australia
http://www.powermag.com/issues/departments/global_monitor/Coal-Seam-Gas-Poised-to-Explode-in-Australia_2285.html
About Holloman Energy
Holloman Energy Corporation is focused on exploring and producing oil in Australia's Cooper Basin. Holloman's Cooper Basin leases include interests in PEL 112 and PEL 444 which comprise 4,544 Sq km (1.125 million acres) in the southwest and northwest sectors of Australia's prolific Cooper -- Eromanga Basin.
Contact:
Holloman Energy Corporation
Grant Petersen
(778) 999-9740
_____________________________________________________________________________________________
tchauncy
Share
Wednesday, November 03, 2010 10:07:32 AM
Re: HomerRomer post# 716
Post # of 717
Thanks for the kudo on KNDI. While I haven't been posting much here on KNDI, Since it is a listed stock, I have been very active on both the Yahoo KNDI board and Seeking Alpha. I have a considerably larger position in KNDI today then when I last posted here and was a buyer of that stock as recently as yesterday. I became involved in that stock when it first started trading Summer of 2007 and venture to say that there is no one short of Management that knows and has researched that stock more than I. IMO, in the next few years KNDI will be the equivalent of a triple digit stock. Even today at the current price, my friends and contacts own at least 80% of the float.
I mention the above not to tout KNDI on the HENC board, but only as a lead in to say that from a due diligence and research point of view, I feel every bit as confident in the potential of HENC with one caveat. Inherently, HENC is more speculative by nature of being an Oil and Gas exploration company that while having a tremendous amount of science on its side showing the massive potential of its properties, it still comes down to the old oil field adage of "only God knows and a drill bit can prove if the science is correct".
I have had the highest respect for the Management of KNDI who owns slightly over 60% of the stock, and a similar respect for Holloman Corp and the Management of HENC who also own over 60% of HENC. (which was not a freebie but in fact has cost over $15 million over he years to acquire) http://www.secform4.com/insider-trading/1324736.htm
While I have been involved in the market for 37 years to include being an Energy Investment Banker with Merrill Lynch, in the past owning my own brokerage firm, and have been an OTC Market Maker, my roots in the industry began as an Oil and Gas specialist here in Houston. In all my years I have never seen a better oil and gas speculation then HENC.
If you have been keeping up with the news that HENC has put out, you will know that due to a once in a hundred year weather phenomena caused flooding in the area of their spectacular, massive Cooper Basin concession in Australia nine months ago. The Cooper basin, while being basically outback desert for the last several million years, was once an inland sea. Ergo the "basin" name. This fluke of nature caused the "sea to come back" leaving areas of the formerly dry basin under as much as 30 feet of water. Since it is a basin, there is no place for the water to run off to, so it has to evaporate. While this certainly might be seen as bad luck for HENC, IMO, it could have been much worse as it has been for a number of small E&P explorers in the area that actually had already started production and development with bank borrowing, now only to see all cash flow stopped. There are no oil pipelines in the area, all production is "trucked out" by "tanker trains" which can't operate with flooded roads. No amount of money can fix this temporary problem, only patience which appears is still going to take a few more months.
A year ago the Cooper was the hottest on shore play in Australia with its common 1000 barrel a day plus discoveries. The flooding did not make the undiscovered oil go away. In the not too distant future, it is inevitable that this will again be the hottest play on the continent. By that time, HENC stock selling below .50 will be left to permanent history, IMO.
The selling right now, IMO, is either that of ignorant impatience or the beginning of early tax loss selling with anticipation of being able to buy back before things start to pick up in the area. While the volume has been light, I personally have added over 100k shares to my already 7 digit position in the stock. I believe that once a partner is announced the stock will start moving up rapidly and by the time a drilling rig is on location early next year, the stock will be closer to a dollar than .50.
If they hit on one of the first few wells, then the upside from that area is immeasurable (wildcat hits in the ares have had better than a 60% success rate). If the science is proven wrong and they strike out on the first few wells, even then the stock is not going to zero. With the latest announcement they will still have almost 3 million unexplored acres. From a risk reward point of view, this is clearly one of the most interesting speculations I have ever seen.
I mentioned above that I first invested in KNDI in 2007 and have been a fan ever since. I paid as high as the upper $6 level only to watch the stock drop all the way back to $.45 not much over a year ago. HENC potential at this level IMO, is the equivalent of buying KNDI below a dollar at that time.
________________________________________________________________ Quote:
________________________________________
We are currently finalizing discussions related to the interest generated by Tristone. We are also pursuing discussions with an additional joint venture candidate whose interest has arisen outside the Tristone process.
During 2010, we have actively sought joint venture partners for our oil and gas concessions and pursued financing to support seismic acquisition in the Cooper/Eromanga Basin. During 2011, we anticipate the establishment of one or more joint ventures, obtaining additional capital, and the pursuit of our Cooper Basin exploration plan.
________________________________________
These wells have 5000 bopd potential and I think you are going to see a Major as the JV!
tchauncy does a good job here of explaining why they are vending in the Coal Seam Gas properties also:
tchauncy
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Monday, November 01, 2010 5:11:34 AM
Re: cougar12 post# 704 Post # of 717
You have to read some "Tea Leaves" with this PR, But...
what this is telling me is that HENC is on the cusp of announcing a Joint Venture partner and that partner is going to be either directly or indirectly involved with a multi-national major O&G company. I mean somebody a lot bigger than just a Beach Petroleum. The main tea leaf here is this quote
"...recent discussion with potential venture partners has highlighted an interest in certain Queensland-based acreage positions held by one of our affiliates"
If you read the links given below in the PR, you will realize that Coal Seam Gas (CSG)in Australia is the on-shore "playground" of just about all of the worlds major oil companies. There has been over $100 billion spent by the majors on positioning for this play in just the past few years alone.
IMO, there is only one reason why HENC's controlling parent Company would go through the trouble to put the CSG assets into the public Company at this time, and that is a well vetted partner of major proportions is close to cutting a deal with HENC, and that partner is big enough to want to play in the CSG play as well.
If I am correct, after this deal is finalized and the word gets out, the stock should make a major move up. For example look at what SPLM has done since they acquired a CSG play in Australia a few months ago. The stock gone up from a low of .20 to $1.40. SPLM has close to half the total number of shares outstanding as HENC. But not one tenth the financial condition and their non-CSG acreage looks like kangaroo pasture to me. It is certainly not the 1.12 million acres HENC has in the Cooper basin,which was the hottest onshore play in Australia prior to the "once in a hundred year flood" of last year which has held up all operations in the field for over ten months now. In a few more months when the area drys up a bit more, you can bet the Cooper Basin will once again be the hottest oil play on shore with its numerous 1000-5000 barrel a day discoveries over the past five years.
Sentry Petroleum 10Q filing
http://www.sec.gov/Archives/edgar/data/1357642/000113717110000594/sentry10q10152010.htm
Holloman Energy 10Q filing
http://www.sec.gov/Archives/edgar/data/1324736/000135448810002498/henc_10q.htm
If SPLM is worth 1.40, then HENC should be worth $4. And don't forget, HENC's Officers, Directors and Parent company have bought over $15 million of the HENC stock in the past three years at prices up close to a dollar a share.
http://www.secform4.com/insider-trading/1324736.htm
_____________________________
FROM:
FORM 10-Q
———————
??QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2010
We hold working interests of 66.67% in two onshore Petroleum Exploration Licenses (PELs) in Australia. PEL 112 is comprised of 2,196 square kilometers (542,643 gross acres). PEL 444 is comprised of 2,358 square kilometers (582,674 gross acres). Both licenses are located on the southwestern flank of the Cooper Basin in the State of South Australia. We are obligated to pay 4.46% in royalties on our revenues generated by operations on these licenses.
The Department of Primary Industries and Resources of South Australia reports that the Cooper Basin has sourced over 4 billion barrels of oil and 5 trillion cubic feet of recoverable gas. It has in excess 120,000 kilometers of 2-D seismic data and more than 1,200 wells in 65 oil and 20 gas fields. Our management believes that Australia provides a stable regulatory, tax and business environment in the oil and gas sector.
On March 7, 2008 we entered into a contingent agreement with Holloman Oil & Gas Limited (“Holloman Oil & Gas”). If pursued, the agreement grants Holloman Oil & Gas the right to earn our two-thirds working interest in PEL 112. To earn this working interest, Holloman Oil & Gas agreed to:
1. Fund the costs required to drill, and if warranted, complete three wells on the PEL 112 within the timeframes required by the permit work program; and
2. Pay us a 1.33% overriding royalty on gross revenues generated from the sale of any oil or gas produced from wells drilled on the PEL 112.
Under the contingent agreement, we would have the right to earn up to a one-third working interest in the PEL 112 concession by paying, prior to the time any well has reached 50% of the expected total depth, our proportionate share of the cost of drilling any of the wells involved in the three-well drilling program. We would also have the right to earn up to a one-third working interest in any future wells drilled on the PEL 112 (over and above the initial three-well drilling program) by paying our proportionate share of the cost of drilling the wells.
In March 2008 Holloman Oil & Gas drilled an exploratory well on PEL 112. The well was drilled to approximately 6,000 feet and was a dry hole.
In June 2008 the Australian government extended the license term and associated work programs for PEL 444 and PEL 112 by five years. Under Australian Law, at the end of each five year term, one third of the area covered by a petroleum exploration license must be relinquished. During June 2008, we identified and relinquished one-third of the acreage covered by PEL 112 and PEL 444 to the Australian government.
Heavy rains beginning in February 2010 created wide scale flooding in the Cooper Basin. The inaccessibility of roads and facilities has partially curtailed Cooper Basin oil production and resulted in a general contraction of exploration activity. Flood waters have begun to recede, but exploration within substantial areas of the Basin remains temporarily impractical. As a result of the flooding, we applied for, and were granted a seven (7) month extension to our license terms on PEL 112 and PEL 444. We continue the necessary steps to obtain “Work Area Clearances” and plan for the acquisition of additional targeted 3D and 2D seismic data on these licenses.
We are currently investigating the acquisition of additional Australian-based assets to diversify our onshore exploration efforts and moderate the land-access risks, such as the flooding, we’ve faced in the past.
To maintain our exploration rights in the Cooper/Eromanga Basin, the Australian Government requires that we fulfill the following minimum work commitments:
License Description of Minimum Work Obligation Date of Required Completion
PEL 112 Acquisition of new seismic data: 2D (100km) January 10, 2012
PEL 112 Geological and geophysical studies January 10, 2013
PEL 112 Drill one well January 10, 2014
PEL 444 Acquisition of new seismic data: 2D (200km) January 10, 2012
PEL 444 Geological and geophysical studies January 10, 2013
PEL 444 Drill one well January 10, 2014
7
________________________________________
The farmin agreement through which we hold our working interests in PEL 112 and PEL 444 also obligates us to fulfill the drilling commitment established by the Australian Government. Based on technical recommendations, we intend to pursue the acquisition of a combination of 3D and 2D seismic data on our licenses. Our current exploration plan also calls for the drilling of more than the two wells required by the minimum work program.
During 2010, we completed processing of more than 666 km (414 miles) of 2D seismic data. This reprocessing fulfilled our June 11, 2010 work program requirements and covered a significant portion of PEL 112 and PEL 444. Our 2D seismic reprocessing was performed by Dayboro Geophysical Pty Ltd (“Dayboro”) under the supervision of Isis Petroleum Consultants Pty Ltd (“Isis”). Both Isis and Dayboro are independent engineers with geological and geophysical expertise and lengthy work experience in the Cooper Basin. The processing sequence targeted lines which complimented our technical assessment of likely drilling prospects and future seismic acquisition.
We have also completed a broad range of technical studies relating to PEL 112 and PEL 444. The studies were performed by Isis and included; a) a review of Cooper Basin exploration acreage (including an analysis of the chronostratigraphy, an assessment of neighboring exploration results, an analysis of petroleum systems and a probabilistic volumetric assessment of leads), b) oil migration studies, c) adjacent oil pools studies, and d) economic feasibility studies. In the opinion of management, the results of these studies has increased the prospectivity of both licenses.
During the 2010 license year, we retained Macquarie Tristone (“Tristone”) to assist us in finding a joint venture partner to share all, or part, of the costs of exploring and developing our Cooper Basin concessions. We have paid Tristone work fees of $241,615, and have promised to pay additional net fees ranging between CAD$550,000 and CAD$750,000 if Tristone is successful in arranging a transaction acceptable to us. We are under no obligation to complete any transaction proposed as a result of this process.
In connection with that search, Tristone prepared and managed data rooms presenting technical, environmental and economic information related to our Cooper Basin holdings. We received multiple offers or firm expressions of interest from potential joint venture partners as a result of this process. We believe the results and timing of our joint venture negotiations have been negatively affected by the flooding. We are currently finalizing discussions related to the interest generated by Tristone. We are also pursuing discussions with an additional joint venture candidate whose interest has arisen outside the Tristone process.
During 2010, we have actively sought joint venture partners for our oil and gas concessions and pursued financing to support seismic acquisition in the Cooper/Eromanga Basin. During 2011, we anticipate the establishment of one or more joint ventures, obtaining additional capital, and the pursuit of our Cooper Basin exploration plan.
__________________________________________________________________
Independent Report Places Possible Estimated Reserves of Approximately 31,000,000 Barrels of Oil on ACOR's 13.83% Working Interest Under PEL 112 & PEL 444 in South Australia
Jun 23, 2009 9:47:00 AM
Copyright Business Wire 2009
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CISCO, Texas--(BUSINESS WIRE)-- Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the operator of PEL 112 & PEL 444, Holloman Energy Corporation states the results of an independent petroleum study which increases the probable (P90) reserves in ACOR's PEL 112 & PEL 444, located in Australia's Cooper/Eromanga Basin by 600%.
ACOR owns a 13.83% working interest under PEL 112 & PEL 444 and is 100% fully carried for its 13.83% working interest in the next 2 wells drilled on either block. ACOR will pay their proportionate part on any exploration cost thereafter. PEL 112 and PEL 444 comprise of approximately 4,544 Sq. kilometers or approximately 1.125 million gross acres and are located in Australia's most prolific onshore oil & gas producing basin, the Cooper/Eromanga Basin.
The study, received by the operator on June 12th 2009, analyzed only 10 of 45 drilling leads and concluded undeveloped P90 and mean risked reserves related to those leads were approximately 25,300,000 barrels of oil and approximately 31,600,000 million barrels of oil, respectively.
The independent study was conducted by ISIS Petroleum Consultants Pty. Ltd. of Australia, an internationally recognized petroleum engineering firm. The reported increase in reserves results, in largest part, from the likely migration of oil past the Cooper Basin's Permian zero edge resulting in the recognition of the Namur Sandstone as the Company's primary reservoir.
The operator of PEL 112 & PEL 444 states that seismic acquisition and a 5-well drilling program to begin exploration of the leases will require expenditures in excess of $11,000,000.
Recent Drilling Successes adjoining PEL 112 to the North:
Two more new oil field discoveries in 2009 have been made on the adjoining block North of ACOR's PEL 112.
Click on link below to see map of recent new oil field discoveries.
http://www.aussieoil.com/site/acor-map.pdf
New Field Discovery - The Perlubie Oil Field
In May 2009, the operator PEL 92 that adjoins PEL 112 to the North announced that the Perlubie-1 well came online at 3000 barrels of oil per day.
The Perlubie-1 well has now been choked back to 800BOPD due to strong production performance in the Parsons and Callawonga oil fields that adjoin PEL 112 to the North.
Currently, the new Parsons-Callawonga-Tantanna flow line is at 100% of its 6000 barrels of oil per day oil capacity.
Perlubie-1 was declared an oil discovery in February 2009.
New Field Discovery - The Perlubie South Oil Field
The operator of PEL 92 states that they have hit a winner with the Perlubie South-1 well in PEL 92, Cooper Basin, after logging confirmed the well is a new oil discovery.
According to partner Cooper Energy, preliminary evaluation of the logs show the well intersected an oil column between 1313-1316m and the oil-water contact appears to be similar to that encountered in the nearby Perlubie-1 well.
The operator of PEL 92 said the logs showed the reservoir appears to be of a similar high quality to other producing Namur oil reservoirs nearby.
About Australian-Canadian Oil Royalties Ltd.:
ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT. ACOR's principal assets consist of 15,440,116 gross surface acres of overriding royalty interest and 8,561,007 gross acres of working interests, located Onshore Australia in the Cooper-Eromanga Basin and Offshore Australia in the Gippsland Basin in the Bass Strait and Offshore in the Carnarvon Basin in Western Australia.
ACOR is a publicly traded oil company trading on the NASDAQ OTC Bulletin Board Exchange under the trading symbol "AUCAF."
Summary:
Australia is a "hot spot" for oil & gas exploration and ACOR is positioned for possible "Company-Maker" discoveries. ACOR's working interests and overriding royalty interests are located offshore & onshore in the best producing basins.
Visit our website at www.aussieoil.com.
Disclaimer:
Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable" (P90), and "mean risked reserves", that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our Form 10K, Form 10Q and other filings with the SEC available from us at 1301 Ave M Cisco, Texas 76437. You can also obtain this information from the SEC on-line at www.sec.gov or by calling 1-800-SEC-0330.
Except for historical information contained herein, the statements released are forward-looking statements that are made pursuant to the provision of the Private Securities Litigation Reform Act of 1955. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.
Source: Australian-Canadian Oil Royalties Ltd.
----------------------------------------------
Australian-Canadian Oil Royalties Ltd.
Investor Relations
254-442-2638
acor@classicnet.net
Holloman Energy Signs Memorandum of Understanding for Acquisition of Additional Australian Assets
Press Release Source: Holloman Energy Corporation On Thursday October 21, 2010, 9:00 am EDT
HOUSTON, Oct. 21, 2010 (GLOBE NEWSWIRE) -- Holloman Energy Corporation (OTCBB:HENC - News) announces execution of a Memorandum of Understanding for the acquisition of additional Australian-based exploration rights and other assets. Under the Agreement, Holloman Energy may acquire application rights in up to seven exploration permits ("EPCs') targeting 1.65 million acres with coal-seam gas potential, together with certain drilling rigs and associated drilling equipment from an affiliated company.
"It's been 8 months since extraordinary flooding halted exploration by virtually all participants neighboring our Cooper Basin concessions," stated Mark Stevenson, Holloman Energy CEO. "Some activity in the Cooper has restarted and with it, interest in our PEL 112 and PEL 444 acreage has begun to reignite. In addition, recent discussion with potential venture partners has highlighted an interest in certain Queensland-based acreage positions held by one of our affiliates," Stevenson continued. "We've watched as the market's focus on coal-seam gas has grown. We now believe it's time to add our EPC application rights to the Holloman Energy portfolio. This is the first in a series of planned steps to diversify our on-shore exploration efforts and moderate the land-access risks, such as the flooding, we've faced in the past. Having a broader on-shore portfolio is a strategy that's worked well for certain of our larger competitors, and we believe will make Holloman Energy a more attractive joint venture partner."
The Queensland, Australia-based, EPCs under application target Permian and Jurassic coals. They cover more than 1,783 sub-blocks (6,666 sq km / 1,647,070 acres) largely in the Adavale Basin area. If the acquisition is finalized, the Company will undertake additional studies to determine whether economics support its pursuit of an Authority To Prospect for coal-seam gas resources. The inventory of drilling assets includes three drill rigs, a vehicle fleet and certain camp support equipment. Holloman Energy is performing a detailed review to determine what portion, if any, of the equipment inventory suits its current needs.
The Agreement between Holloman Energy and its affiliate sets an acquisition price that approximates the cost basis of the individual assets selected for acquisition. The Agreement is subject to standard contingencies including; the completion of satisfactory due diligence, definitive agreements, and required approvals.
About Coal-Seam Gas
What is coal-seam gas?
Coal-seam gas (CSG) is a form of natural gas trapped in the molecular structure of coal beds. The gas is usually produced from coal that is either too deep or of too low quality to be mined commercially.
In contrast, conventional natural gas is stored in the gaps between rock formations. As a result, coal-seams can contain significantly higher quantities of gas than are found in conventional reservoirs.
Q: How do you produce coal-seam gas?
The process begins by drilling a well up to 600 meters below ground. The top section is cased with steel and cement and a special rotating blade is lowered to the bottom section to dig cavities in the coal-seams.
Water and gas are pumped from the well and extracted using separate pipes. The gas is cleaned, processed and compressed before being fed into commercial pipelines.
Q: Why is there such interest in the industry in Australia?
In the past decade, CSG has become an important source of energy in America as conventional gas reserves have been depleted and the technology to extract CSG has improved.
It is now taking off in Australia, where huge reserves exist and where there is a vast and growing market for energy exports to nearby China and southeast Asia. CSG now represents 40 per cent of Australia's onshore gas reserves.
Oil companies such as BG Group, ConocoPhillips and Petronas have all invested in Australia's coal-seam gas industry in recent months.
Additional information on CSG:
Coal-Seam Gas Producers - The New Masters Of The Universe?
http://peakenergy.blogspot.com/2008/10/coal-seam-gas-producers-new-masters-of.html
Coal-Seam Gas Poised to Explode in Australia
http://www.powermag.com/issues/departments/global_monitor/Coal-Seam-Gas-Poised-to-Explode-in-Australia_2285.html
About Holloman Energy
Holloman Energy Corporation is focused on exploring and producing oil in Australia's Cooper Basin. Holloman's Cooper Basin leases include interests in PEL 112 and PEL 444 which comprise 4,544 Sq km (1.125 million acres) in the southwest and northwest sectors of Australia's prolific Cooper -- Eromanga Basin.
Contact:
Holloman Energy Corporation
Grant Petersen
(778) 999-9740
_____________________________________________________________________________________________
tchauncy
Share
Wednesday, November 03, 2010 10:07:32 AM
Re: HomerRomer post# 716
Post # of 717
Thanks for the kudo on KNDI. While I haven't been posting much here on KNDI, Since it is a listed stock, I have been very active on both the Yahoo KNDI board and Seeking Alpha. I have a considerably larger position in KNDI today then when I last posted here and was a buyer of that stock as recently as yesterday. I became involved in that stock when it first started trading Summer of 2007 and venture to say that there is no one short of Management that knows and has researched that stock more than I. IMO, in the next few years KNDI will be the equivalent of a triple digit stock. Even today at the current price, my friends and contacts own at least 80% of the float.
I mention the above not to tout KNDI on the HENC board, but only as a lead in to say that from a due diligence and research point of view, I feel every bit as confident in the potential of HENC with one caveat. Inherently, HENC is more speculative by nature of being an Oil and Gas exploration company that while having a tremendous amount of science on its side showing the massive potential of its properties, it still comes down to the old oil field adage of "only God knows and a drill bit can prove if the science is correct".
I have had the highest respect for the Management of KNDI who owns slightly over 60% of the stock, and a similar respect for Holloman Corp and the Management of HENC who also own over 60% of HENC. (which was not a freebie but in fact has cost over $15 million over he years to acquire) http://www.secform4.com/insider-trading/1324736.htm
While I have been involved in the market for 37 years to include being an Energy Investment Banker with Merrill Lynch, in the past owning my own brokerage firm, and have been an OTC Market Maker, my roots in the industry began as an Oil and Gas specialist here in Houston. In all my years I have never seen a better oil and gas speculation then HENC.
If you have been keeping up with the news that HENC has put out, you will know that due to a once in a hundred year weather phenomena caused flooding in the area of their spectacular, massive Cooper Basin concession in Australia nine months ago. The Cooper basin, while being basically outback desert for the last several million years, was once an inland sea. Ergo the "basin" name. This fluke of nature caused the "sea to come back" leaving areas of the formerly dry basin under as much as 30 feet of water. Since it is a basin, there is no place for the water to run off to, so it has to evaporate. While this certainly might be seen as bad luck for HENC, IMO, it could have been much worse as it has been for a number of small E&P explorers in the area that actually had already started production and development with bank borrowing, now only to see all cash flow stopped. There are no oil pipelines in the area, all production is "trucked out" by "tanker trains" which can't operate with flooded roads. No amount of money can fix this temporary problem, only patience which appears is still going to take a few more months.
A year ago the Cooper was the hottest on shore play in Australia with its common 1000 barrel a day plus discoveries. The flooding did not make the undiscovered oil go away. In the not too distant future, it is inevitable that this will again be the hottest play on the continent. By that time, HENC stock selling below .50 will be left to permanent history, IMO.
The selling right now, IMO, is either that of ignorant impatience or the beginning of early tax loss selling with anticipation of being able to buy back before things start to pick up in the area. While the volume has been light, I personally have added over 100k shares to my already 7 digit position in the stock. I believe that once a partner is announced the stock will start moving up rapidly and by the time a drilling rig is on location early next year, the stock will be closer to a dollar than .50.
If they hit on one of the first few wells, then the upside from that area is immeasurable (wildcat hits in the ares have had better than a 60% success rate). If the science is proven wrong and they strike out on the first few wells, even then the stock is not going to zero. With the latest announcement they will still have almost 3 million unexplored acres. From a risk reward point of view, this is clearly one of the most interesting speculations I have ever seen.
I mentioned above that I first invested in KNDI in 2007 and have been a fan ever since. I paid as high as the upper $6 level only to watch the stock drop all the way back to $.45 not much over a year ago. HENC potential at this level IMO, is the equivalent of buying KNDI below a dollar at that time.
________________________________________________________________ Quote:
________________________________________
We are currently finalizing discussions related to the interest generated by Tristone. We are also pursuing discussions with an additional joint venture candidate whose interest has arisen outside the Tristone process.
During 2010, we have actively sought joint venture partners for our oil and gas concessions and pursued financing to support seismic acquisition in the Cooper/Eromanga Basin. During 2011, we anticipate the establishment of one or more joint ventures, obtaining additional capital, and the pursuit of our Cooper Basin exploration plan.
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These wells have 5000 bopd potential and I think you are going to see a Major as the JV!
tchauncy does a good job here of explaining why they are vending in the Coal Seam Gas properties also:
tchauncy
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Monday, November 01, 2010 5:11:34 AM
Re: cougar12 post# 704 Post # of 717
You have to read some "Tea Leaves" with this PR, But...
what this is telling me is that HENC is on the cusp of announcing a Joint Venture partner and that partner is going to be either directly or indirectly involved with a multi-national major O&G company. I mean somebody a lot bigger than just a Beach Petroleum. The main tea leaf here is this quote
"...recent discussion with potential venture partners has highlighted an interest in certain Queensland-based acreage positions held by one of our affiliates"
If you read the links given below in the PR, you will realize that Coal Seam Gas (CSG)in Australia is the on-shore "playground" of just about all of the worlds major oil companies. There has been over $100 billion spent by the majors on positioning for this play in just the past few years alone.
IMO, there is only one reason why HENC's controlling parent Company would go through the trouble to put the CSG assets into the public Company at this time, and that is a well vetted partner of major proportions is close to cutting a deal with HENC, and that partner is big enough to want to play in the CSG play as well.
If I am correct, after this deal is finalized and the word gets out, the stock should make a major move up. For example look at what SPLM has done since they acquired a CSG play in Australia a few months ago. The stock gone up from a low of .20 to $1.40. SPLM has close to half the total number of shares outstanding as HENC. But not one tenth the financial condition and their non-CSG acreage looks like kangaroo pasture to me. It is certainly not the 1.12 million acres HENC has in the Cooper basin,which was the hottest onshore play in Australia prior to the "once in a hundred year flood" of last year which has held up all operations in the field for over ten months now. In a few more months when the area drys up a bit more, you can bet the Cooper Basin will once again be the hottest oil play on shore with its numerous 1000-5000 barrel a day discoveries over the past five years.
Sentry Petroleum 10Q filing
http://www.sec.gov/Archives/edgar/data/1357642/000113717110000594/sentry10q10152010.htm
Holloman Energy 10Q filing
http://www.sec.gov/Archives/edgar/data/1324736/000135448810002498/henc_10q.htm
If SPLM is worth 1.40, then HENC should be worth $4. And don't forget, HENC's Officers, Directors and Parent company have bought over $15 million of the HENC stock in the past three years at prices up close to a dollar a share.
http://www.secform4.com/insider-trading/1324736.htm
_____________________________
FROM:
FORM 10-Q
———————
??QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2010
We hold working interests of 66.67% in two onshore Petroleum Exploration Licenses (PELs) in Australia. PEL 112 is comprised of 2,196 square kilometers (542,643 gross acres). PEL 444 is comprised of 2,358 square kilometers (582,674 gross acres). Both licenses are located on the southwestern flank of the Cooper Basin in the State of South Australia. We are obligated to pay 4.46% in royalties on our revenues generated by operations on these licenses.
The Department of Primary Industries and Resources of South Australia reports that the Cooper Basin has sourced over 4 billion barrels of oil and 5 trillion cubic feet of recoverable gas. It has in excess 120,000 kilometers of 2-D seismic data and more than 1,200 wells in 65 oil and 20 gas fields. Our management believes that Australia provides a stable regulatory, tax and business environment in the oil and gas sector.
On March 7, 2008 we entered into a contingent agreement with Holloman Oil & Gas Limited (“Holloman Oil & Gas”). If pursued, the agreement grants Holloman Oil & Gas the right to earn our two-thirds working interest in PEL 112. To earn this working interest, Holloman Oil & Gas agreed to:
1. Fund the costs required to drill, and if warranted, complete three wells on the PEL 112 within the timeframes required by the permit work program; and
2. Pay us a 1.33% overriding royalty on gross revenues generated from the sale of any oil or gas produced from wells drilled on the PEL 112.
Under the contingent agreement, we would have the right to earn up to a one-third working interest in the PEL 112 concession by paying, prior to the time any well has reached 50% of the expected total depth, our proportionate share of the cost of drilling any of the wells involved in the three-well drilling program. We would also have the right to earn up to a one-third working interest in any future wells drilled on the PEL 112 (over and above the initial three-well drilling program) by paying our proportionate share of the cost of drilling the wells.
In March 2008 Holloman Oil & Gas drilled an exploratory well on PEL 112. The well was drilled to approximately 6,000 feet and was a dry hole.
In June 2008 the Australian government extended the license term and associated work programs for PEL 444 and PEL 112 by five years. Under Australian Law, at the end of each five year term, one third of the area covered by a petroleum exploration license must be relinquished. During June 2008, we identified and relinquished one-third of the acreage covered by PEL 112 and PEL 444 to the Australian government.
Heavy rains beginning in February 2010 created wide scale flooding in the Cooper Basin. The inaccessibility of roads and facilities has partially curtailed Cooper Basin oil production and resulted in a general contraction of exploration activity. Flood waters have begun to recede, but exploration within substantial areas of the Basin remains temporarily impractical. As a result of the flooding, we applied for, and were granted a seven (7) month extension to our license terms on PEL 112 and PEL 444. We continue the necessary steps to obtain “Work Area Clearances” and plan for the acquisition of additional targeted 3D and 2D seismic data on these licenses.
We are currently investigating the acquisition of additional Australian-based assets to diversify our onshore exploration efforts and moderate the land-access risks, such as the flooding, we’ve faced in the past.
To maintain our exploration rights in the Cooper/Eromanga Basin, the Australian Government requires that we fulfill the following minimum work commitments:
License Description of Minimum Work Obligation Date of Required Completion
PEL 112 Acquisition of new seismic data: 2D (100km) January 10, 2012
PEL 112 Geological and geophysical studies January 10, 2013
PEL 112 Drill one well January 10, 2014
PEL 444 Acquisition of new seismic data: 2D (200km) January 10, 2012
PEL 444 Geological and geophysical studies January 10, 2013
PEL 444 Drill one well January 10, 2014
7
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The farmin agreement through which we hold our working interests in PEL 112 and PEL 444 also obligates us to fulfill the drilling commitment established by the Australian Government. Based on technical recommendations, we intend to pursue the acquisition of a combination of 3D and 2D seismic data on our licenses. Our current exploration plan also calls for the drilling of more than the two wells required by the minimum work program.
During 2010, we completed processing of more than 666 km (414 miles) of 2D seismic data. This reprocessing fulfilled our June 11, 2010 work program requirements and covered a significant portion of PEL 112 and PEL 444. Our 2D seismic reprocessing was performed by Dayboro Geophysical Pty Ltd (“Dayboro”) under the supervision of Isis Petroleum Consultants Pty Ltd (“Isis”). Both Isis and Dayboro are independent engineers with geological and geophysical expertise and lengthy work experience in the Cooper Basin. The processing sequence targeted lines which complimented our technical assessment of likely drilling prospects and future seismic acquisition.
We have also completed a broad range of technical studies relating to PEL 112 and PEL 444. The studies were performed by Isis and included; a) a review of Cooper Basin exploration acreage (including an analysis of the chronostratigraphy, an assessment of neighboring exploration results, an analysis of petroleum systems and a probabilistic volumetric assessment of leads), b) oil migration studies, c) adjacent oil pools studies, and d) economic feasibility studies. In the opinion of management, the results of these studies has increased the prospectivity of both licenses.
During the 2010 license year, we retained Macquarie Tristone (“Tristone”) to assist us in finding a joint venture partner to share all, or part, of the costs of exploring and developing our Cooper Basin concessions. We have paid Tristone work fees of $241,615, and have promised to pay additional net fees ranging between CAD$550,000 and CAD$750,000 if Tristone is successful in arranging a transaction acceptable to us. We are under no obligation to complete any transaction proposed as a result of this process.
In connection with that search, Tristone prepared and managed data rooms presenting technical, environmental and economic information related to our Cooper Basin holdings. We received multiple offers or firm expressions of interest from potential joint venture partners as a result of this process. We believe the results and timing of our joint venture negotiations have been negatively affected by the flooding. We are currently finalizing discussions related to the interest generated by Tristone. We are also pursuing discussions with an additional joint venture candidate whose interest has arisen outside the Tristone process.
During 2010, we have actively sought joint venture partners for our oil and gas concessions and pursued financing to support seismic acquisition in the Cooper/Eromanga Basin. During 2011, we anticipate the establishment of one or more joint ventures, obtaining additional capital, and the pursuit of our Cooper Basin exploration plan.
__________________________________________________________________
Independent Report Places Possible Estimated Reserves of Approximately 31,000,000 Barrels of Oil on ACOR's 13.83% Working Interest Under PEL 112 & PEL 444 in South Australia
Jun 23, 2009 9:47:00 AM
Copyright Business Wire 2009
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CISCO, Texas--(BUSINESS WIRE)-- Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the operator of PEL 112 & PEL 444, Holloman Energy Corporation states the results of an independent petroleum study which increases the probable (P90) reserves in ACOR's PEL 112 & PEL 444, located in Australia's Cooper/Eromanga Basin by 600%.
ACOR owns a 13.83% working interest under PEL 112 & PEL 444 and is 100% fully carried for its 13.83% working interest in the next 2 wells drilled on either block. ACOR will pay their proportionate part on any exploration cost thereafter. PEL 112 and PEL 444 comprise of approximately 4,544 Sq. kilometers or approximately 1.125 million gross acres and are located in Australia's most prolific onshore oil & gas producing basin, the Cooper/Eromanga Basin.
The study, received by the operator on June 12th 2009, analyzed only 10 of 45 drilling leads and concluded undeveloped P90 and mean risked reserves related to those leads were approximately 25,300,000 barrels of oil and approximately 31,600,000 million barrels of oil, respectively.
The independent study was conducted by ISIS Petroleum Consultants Pty. Ltd. of Australia, an internationally recognized petroleum engineering firm. The reported increase in reserves results, in largest part, from the likely migration of oil past the Cooper Basin's Permian zero edge resulting in the recognition of the Namur Sandstone as the Company's primary reservoir.
The operator of PEL 112 & PEL 444 states that seismic acquisition and a 5-well drilling program to begin exploration of the leases will require expenditures in excess of $11,000,000.
Recent Drilling Successes adjoining PEL 112 to the North:
Two more new oil field discoveries in 2009 have been made on the adjoining block North of ACOR's PEL 112.
Click on link below to see map of recent new oil field discoveries.
http://www.aussieoil.com/site/acor-map.pdf
New Field Discovery - The Perlubie Oil Field
In May 2009, the operator PEL 92 that adjoins PEL 112 to the North announced that the Perlubie-1 well came online at 3000 barrels of oil per day.
The Perlubie-1 well has now been choked back to 800BOPD due to strong production performance in the Parsons and Callawonga oil fields that adjoin PEL 112 to the North.
Currently, the new Parsons-Callawonga-Tantanna flow line is at 100% of its 6000 barrels of oil per day oil capacity.
Perlubie-1 was declared an oil discovery in February 2009.
New Field Discovery - The Perlubie South Oil Field
The operator of PEL 92 states that they have hit a winner with the Perlubie South-1 well in PEL 92, Cooper Basin, after logging confirmed the well is a new oil discovery.
According to partner Cooper Energy, preliminary evaluation of the logs show the well intersected an oil column between 1313-1316m and the oil-water contact appears to be similar to that encountered in the nearby Perlubie-1 well.
The operator of PEL 92 said the logs showed the reservoir appears to be of a similar high quality to other producing Namur oil reservoirs nearby.
About Australian-Canadian Oil Royalties Ltd.:
ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT. ACOR's principal assets consist of 15,440,116 gross surface acres of overriding royalty interest and 8,561,007 gross acres of working interests, located Onshore Australia in the Cooper-Eromanga Basin and Offshore Australia in the Gippsland Basin in the Bass Strait and Offshore in the Carnarvon Basin in Western Australia.
ACOR is a publicly traded oil company trading on the NASDAQ OTC Bulletin Board Exchange under the trading symbol "AUCAF."
Summary:
Australia is a "hot spot" for oil & gas exploration and ACOR is positioned for possible "Company-Maker" discoveries. ACOR's working interests and overriding royalty interests are located offshore & onshore in the best producing basins.
Visit our website at www.aussieoil.com.
Disclaimer:
Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable" (P90), and "mean risked reserves", that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our Form 10K, Form 10Q and other filings with the SEC available from us at 1301 Ave M Cisco, Texas 76437. You can also obtain this information from the SEC on-line at www.sec.gov or by calling 1-800-SEC-0330.
Except for historical information contained herein, the statements released are forward-looking statements that are made pursuant to the provision of the Private Securities Litigation Reform Act of 1955. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.
Source: Australian-Canadian Oil Royalties Ltd.
----------------------------------------------
Australian-Canadian Oil Royalties Ltd.
Investor Relations
254-442-2638
acor@classicnet.net
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