MEC Resources ‘peps’ up
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
In September 2015, MEC Resources (ASX:MMR) announced a revised future drill target within PEP11 in the offshore Sydney Basin.
PEP 11 is a region of the Basin immediately adjacent to the largest gas market in Australia and is a high impact exploration project.
MEC Resources advised the market recently that it had identified a revised drill target on the Baleen Prospect on seismic line B4-18 with a total depth of 2150 metres.
The proposed exploration works is being undertaken by Advent Energy, an unlisted oil and gas exploration company held by major shareholders MEC Resources, BPH Energy (ASX:BPH), Grandbridge (ASX:GBA) and Talbot Group Investments.
Advent has a portfolio of near term development and exploration assets, including conventional and unconventional petroleum targets.
PEP 11 is held 85% and operated by Asset Energy Pty Ltd, a wholly owned subsidiary of Advent.
The drilling target at Baleen is in 125m of water and was found to be analogous with existing producing fields.
A seismic survey is currently being conducted covering approximately 200 line kilometres, which will assist in the future drilling of this target – approximately 30km south east of Newcastle, NSW.
Meanwhile the potential rigs available to drill the area are also being evaluated.
Future drilling will be subject to final technical review and will require further fund raising or joint venture.
A recent geochemical report reviewed the hydrocarbon analysis performed on sediment samples obtained within PEP11 during 2010.
The 2010 investigation utilised a proprietary commercial hydrocarbon adsorption and laboratory analysis technique to assess the levels of naturally occurring hydrocarbons in the seabed sediment samples.
The new report features further analysis of that initial investigation and supports that the proposed drilling site at Baleen appears best for hydrocarbon influence relative to background samples.
“The geochemical data acquired in 2010 supports the identification of reliable backgrounds and also primary hydrocarbon influence locations, despite active gas seeps which appear ubiquitous throughout the area of interest,” states the report.
“The Baleen Prospect appears to hold a higher probability of success than other prospects.”
PEP11 is important in the current oil and gas climate and could provide a suitable fuel for long term base load power generation in NSW.
This is particularly important as politics and self-interest groups continue to stall the production of oil and gas onshore NSW.
While PEP11 is a major play, MEC Resources is also focused on a well in EP36 in the onshore Bonaparte Basin in the north of Western Australia, where investee Advent has commenced preparations for drilling.
Advent is currently sourcing costs and availability of drilling rigs for an exploration well to be completed by 31 March 2017.
Again, the well be subject to appropriate fund raising.
Advent’s 100% interests in EP386 and nearby RL1 are held by wholly owned subsidiary Onshore Energy Pty Ltd.
The Bonaparte Basin is a highly prospective petroleum basin with significant reserves of oil and gas – it is Australia’s third most prolific offshore hydrocarbon producing basin.
Of the nine wells already drilled within EP386, six have flowed gas to the surface at various rates up to 2.1 MMscf/d, and all have demonstrated evidence of the presence of hydrocarbons.
There is rapid infrastructural development in this Kununurra region, including the Ord River Irrigation Areas. There are also numerous resource projects in progress and the world-scale aquaculture project (Project Sea Dragon).
It puts Advent in a strong position to further its ambitions and the company has now entered into discussions and letters of intent for potential gas supply with several large gas potential gas consumers.
The wash up
MEC Resources is strategically placed to capitalise on the positions Advent has placed itself in.
While EP386 looks promising, it is the play offshore NSW that is raising most eyebrows.
The oil and gas market is effectively stalled as politicians and interest groups are at a major impasse, which is having a negative effect on gas prices for the average consumer.
Should Advent be able to prove up a gas resource offshore, then it may just be able to do some good for the NSW gas market.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.