Updates On Oil And Energy Sector Stocks - NWE, CVN, WEL, GGX

  • Jul 08, 2019 AEST
  • Team Kalkine
Updates On Oil And Energy Sector Stocks - NWE, CVN, WEL, GGX

Norwest Energy NL (ASX: NWE)

On the discovery of Waitsia well, Norwest Energy NL joined the other Perth Basin explorers in the trend of re-evaluating the oil and gas prospectivity of its portfolio. This large, conventional oil prospect was reportedly delineated around 5 km to the west of exploration permit EP368 of the Perth Basin.

In a release dated 8 July 2019, Norwest informed that the Waitsia discovery has opened up an exciting new petroleum play within the basin by encountering a very significant hydrocarbon accumulation within the Lower Permian Kingia and High Cliff Sandstone formations.

Location of EP368 exploration permit (Source: Company Announcement)

The exploration permit EP368 is the subject of a joint venture between Norwest Energy and Energy Resources Limited, a wholly owned subsidiary of Mineral Resources Limited. It holds Springy Creek oil prospect, which was until recently a structural lead, but has been upgraded to a drillable prospect following 2D seismic reprocessing undertaken by Norwest Energy. The recent seismic data reprocessing has enhanced the company’s estimate of Geological Chance of Success (GCoS) for the prospect to 25%.

As per the company’s information, the prospect offers significant potential for sizeable oil accumulations within both the Kingia and the High Cliff Sandstone formations which, based on well intersections in the wider region, are prognosed to incorporate thick, high-quality reservoir sand units at the prospect location at target depths of 2,470 metres and 2,570 metres respectively. It includes Prospective Recoverable Resources of up to 61 MMbbls (Gross), that makes 12.2 MMbbls for NWE’s 20% interest.

Norwest Energy's estimate of the Prospective Resources

NWE stock price last traded at $0.002 with the daily volume change of 1,860,016 shares on 8 July 2019. Over the past 12 months, the stock has declined by 33.33% while its presents market capitalisation sits at $6.76 million.

Also Read: Norwest Energy Publishes Details On Funding Update and Board Changes

Carnarvon Petroleum Limited (ASX: CVN)

Carnarvon Petroleum recently announced that the historic discovery of oil and condensate rich gas in Dorado has been successfully appraised through the Dorado-2 well.

In the Caley reservoir, being the primary target, Carnarvon extracted high-quality oil while gaining confidence in the first phase of development on the foundation of excellent reservoir properties required for developing this oil field.

The report read that the wireline logging of the Dorado-2 has confirmed an expectation of significant oil and gas resource at Dorado. It further ensured a hydrocarbon column was encountered at Baxter reservoir with no gas-water contact identified.

On the basis of Dorado-1 and 2 reservoir results, the company believes that there is a sufficient potential in the deeper Crespin and Milne intervals to drill to the planned TD of approximately 5,100 metres MD.

The objective of the Roc South well was to determine if additional hydrocarbons existed that were capable of being tied-in and produced with the Dorado liquids (oil and condensate) and gas production facilities. However, the development plans for Dorado would not be affected by the results of Roc South in the Baxter and Caley reservoirs, as per the company’s report.

As the trading halt got lifted on CVN securities, the stock plunged 21.552% to close at $0.455 on 8 July 2019.

Winchester Energy Limited (ASX: WEL)

In today’s announcement dated 8 July 2019, Winchester Energy Limited announced that it will spud new well Arledge 16#2 on the same date targeting the relatively shallow Cisco Sands at the newly defined Lightning Prospect.

The report read that Arledge 16#2 has a planned total depth of 5,500ft and must be spud prior to July 17, 2019 to satisfy lease hold drilling commitments and thereby extend the Arledge lease (3,342 acres) by a further year.

The Lightning Prospect has a Gross Prospective Resource best estimate P50 of 1.95mmbo in the Cisco Sands. However, these estimates relate to undiscovered accumulations and require further exploration appraisal and developments to evaluate the existence of potentially moveable hydrocarbons quantities.

Location of Lightning Prospect and the Arledge 16#2 well

The company also announced the resignation of Non-Executive Director Peter Allchurch due to health reasons; resignation being effective 31 July 2019. Mr. Allchurch was the founding Chairman of Winchester and was instrumental in the identification and acquisition of the Company’s oil and gas assets in the USA.

In a day-trading session, WEL stock price jumped up 14.286% to last trade at $0.032 on 8 July 2019. Over the past 12 months, the stock has moved up by 26.39% including a positive price change of 40.00% in the past six months.

Gas2Grid Limited (ASX: GGX)

Gas2Grid Limited has been granted extension of time to commence deepening Nuevo Malolos. In a market announcement to ASX, the company informed that the Philippine Department of Energy (DOE) has allowed it the time until the end of September 2019 to commence drilling operations on the Nuevo Malolos-1 Deepening.

As per the report, the company is recommencing preparations for the drilling operations in the coming weeks with the mobilization of the crew to promptly move the rig over Nuevo Malolos-1 from Malolos-1 that is about 20 metres away.

The closing date of 1 for 2 non-renounceable entitlement offer has also been extended from 28 June 2019 to 26 July 2019. The Offer Document had provided for the deepening of the Nuevo Malolos-1 to commence soon after the Offer Closing Date subject to raising at least $1,375,000 under the offer and/or by placement of any shortfall shares.

GGX stock price surged 50% to close at $0.003 on 8 July 2019. The stock has declined 33.33% over the past 12 months, including a negative price change of 50.00% in the past three months.

The market capitalisation of the company stands at $2.29 million with the shares outstanding of 1.14 billion in the market.

Also Read: Gas2Grid receives appeal court’s decision for St Griede Permit


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