Hephaestus Share Discussion Threads

[egoi] 25/1/2006 15:15

Matt just posted this elsewhere which might help people's perspectives of what is really going on here:

'HEP (with neighbouring licence applications for five times the space already explored)have an estimate of 991 billion cubic feet at the two sites.

To compare with VOG The FT said of the VOG find in November: 'Independent consultants DeGoyler & MacNaughton confirmed that Victoria had discovered 500bn cubic feet of recoverable gas, up from the previous estimate of 16bn cubic feet, at its West Medvezhye gas and condensate project in the Yamal Nenetsk region of Russia..........The discovery is believed to be the largest discovery of natural gas by an Aim-listed company. One analyst said: "It's certainly the biggest in many years. It's huge..............'

That's what astounds me about the two valuations, this is bigger, even agreeing (as with all explorers) there are risks going forward for HEP (and VOG too i guess) .

HEP wouldn't need to recover a lot (and how much is certainly one question) to be worth many many times this market cap imho.

[matt_murf] 25/1/2006 14:58

another 100,000 bought @ 6p! 10p by end of the week a possibility imho.

[egoi] 25/1/2006 14:53

100kbuy reported at 6p, breaking new ground, more to come.

[hedgehunter] 25/1/2006 14:53

Checked out JCR yet scotland.

[egoi] 25/1/2006 14:38

Still a market cap less than 1% of VOG despite a bigger find. Given that both have risks going forward, the upside for HEP is enormous. 2 million market cap, scope for upside enormous.

PS: Oh my poodle has waddled over, as promised; hedge deramps all my stocks, that's why i keep him on filter. Told him to buy this at 1p, I think he is suffering from a wee tad of jealousy, poor chap (or lassie). I always know I am onto something good when he arrives! -:)

[egoi] 25/1/2006 13:57

Even after the move today market cap still under 2.5 million, huge gas find too!

[egoi] 25/1/2006 13:18

To the top for renewable - and others interested,.

[egoi] 25/1/2006 11:21

A results update with a possible funding is due between now and end february (could be anytime). The funding (probably below this price given how fast it has moved) would be a key plusa imho, at this market cap a bit of dilution is not a worry and the money will enable further progress. A pilot production programme is scheduled for late summer and full production should start early next year at the latest. They intend to overcome environmental matters by reinjecting water back into the rocks, as has been done with other CBM projects very successfully in the US

Hope that helps, thanks for your interest renewable, i believe this is a sleeping beauty, though it is starting to come to life as people spot the spectacular market cap discrepancy.!

Bit more here:

[renewable04] 25/1/2006 11:00

Thanks for pointing this one out egoi. I've been looking to get an idea of when possible updates / drilling reports / feasibility studies are to be announced to the market but am struggling .... just trying to get an idea of timing as as you have said timescales and how far you are along them alters the value of a share dramatically (VOG) ...... where do you see these in say 6months a year ?

Cheers.

[egoi] 25/1/2006 08:39

Well done VOG holders, shows (imvho) just how absurdly undervalued Ofex:HEP still is with a market cap of under 2 (that's 2, not like VOG's 200) million!.Markets truly are ignorant sometimes, even if they recover less after this huge discovery HEP will be worth many many times the current market cap. Risk/rewrd here truly fantastic in our favour!

Trading ofex is like any other market though some online brokers may require a phone call - well worth it in this case!

[egoi] 24/1/2006 07:38

This bit particularly catches the eye, showing how imho absurdly low the market cap is.

'The GIP resource is based on an area comprising 68 Sq. km in total or
approximately 15% of the entire Lorraine Permit of 460 Sq km. In addition,
Heritage and Kimberley have a further 528 sq km under application adjoining the
Lorraine Permit and covering the southern extensions of the Lorraine Basin.'

Risks yes, but a market cap of under 2 million?? - rewards look massive imho.

[egoi] 23/1/2006 17:20

interesting little T trade reported just before the close at 4.375p. Could be a bigger buyer in the background.

[egoi] 23/1/2006 07:05

Not me pug, and I don't know, but he clearly has a lot of confidence. yes it is below a lot of radars, but the 300% rise shows that one or two are getting the idea! You're welcome if you want to put any of the above on the premium board, which I am not a member of.

[pugugly] 23/1/2006 07:03

egoi Thanks. Do you know who is Richard Price?. (you?) Agreed re media but has been around for a long time - however may be below most peoples radar as such a low valuation.

SUBSTANTIAL SHAREHOLDINGS ANNOUNCEMENT


Shareholder Richard Price

Total shares owned or controlled 2,105,000

Percentage of current issued voting share capital 5.0%

Date of notification 4 January 2006

[egoi] 23/1/2006 07:02

Lot of people getting excited about prospects here, the reason i think being the market cap is less than 2 million, the confirmed find certainly worth many times that.

[egoi] 22/1/2006 21:25

Hi, Still holding mine pug,. of course there are risks but I do think if they manage to get a small fundraising then the future is effectively secured - and the find is quite something, worth many times more than the market cap almost certainly.
Interesting and imho very fair analysis by a poster elsehwere, who seems to know the score, extracts below, the company when I chatted to them before Xmas are very confident about fairly straightforward extraction: I believe a 5 million market cap (c.10p - probably including a small fundraising; 42 million shares currently) should be fairly easily achieveable:

He says:

"I have just read this thread and interesting stock.

Let me try summarise:
Potential:
* Huge gas find confirmed
* 25% stake, useful
* Good political area
* More (neighbouring) licences on the way, further finds a real proposition
* Update very soon sounds like should be very positive
* Partner in place
* Good gas prices, sector hot
* Market cap tiny

Risks:
* Funding needed
* Still got to get it out and to market
* Don't know anything about management
* Timespan?
* Liquidity?

...on a risk basis the rewards do look great and I will buy in as long as the update has nothing nasty or the shares don't run away before because there are far more expensive companies with nothing to show and utter wing and prayer jobs.

Accept the risks here but in this sector one of the most exciting plays I have heard of. Anyone selling is taking a bigger risk than anyone buying. If the media or someone like shares mag get hold of the size of the find, these shares could go ballistic. Should probably be a lot higher already......."

[pugugly] 22/1/2006 19:06

Up over 400% since thread started - Surprised not more comment - Some very heavy buying. Current views?

[egoi] 21/11/2005 07:44

Encourage even non-Ofex investors to take a serious look.

[egoi] 20/11/2005 16:32

Not my favourite site, but fwiw, this was UQ-Analyst's comments about the company in October, before of course Friday's amazing announcement (which they don't appear to have bothered commenting on to press).

Sterling progress for Heritage

A progress report from Heritage Petroleum on Wednesday outlined just how far this lowly rated resource junior has come in recent months. With each update, the pieces of what appears to be an attractive jigsaw are slotting together to create the impression of an exciting little company. Capitalised at just 420,000 pounds, Heritage is sitting on a cracking coal methane project that on its own, offers the potential of humbling the holding company's pitiful market capitalisation.

Heritage's Kimberley project continues to source and analyse data under the Reservoir Study programs in each of the granted areas, as it progresses plans for an impending drilling program within Bleue Lorraine followed by programs at Gaz de Gardanne and Gaz de Saint Etienne. Meanwhile a further license application has been submitted in respect of Bleue Lorraine Sud.

The Bleue Lorraine licence was granted in November last year and covers some 460 square kilometres, encompassing a significant part of the Lorraine Basin which has historical coal production in excess of 850 million tonnes. The coal seams within the application area are of Carboniferous age and are characterised as black, gassy high ranking coals. Cumulative seam thicknesses total 20 to 30 metres over 200 metre intervals. Maximum cumulative seam thicknesses are up to 100 metres. The reasons Heritage has intimated its excitement in the project appear to stem from the previous license holder, Enron Exploration France, who calculated that the coals in the Lorraine Basin contained an in situ resource of approximately 5.9 trillion cubic feet of methane. The Enron calculation was confined to coals above 1,500 metres below surface. Coal-bed methane prospectivity extends over the entire permit while two likely sites for the production of coal mine methane are being targeted.

Meanwhile, the study of the mining data base will be completed shortly, which in turn should enable calculations to be made as to optimal rates of extraction. This study, when
completed will control the direction of Heritage's coal mine methane project, in particular the abandoned Folschiviller mine. Completion of the study of the data will enable identification of area of maximum coal based methane content. These areas will be tested by one or more core holes to recover coal for analysis including for gas content of the intra coal sediments as well as the coal.

There remain obvious risks here. This is about as junior as you get with resource companies, but there is also some exciting projects. We continue to like this company and its prospects, although we concede that at this stage, backing this company is a risky business. Kimberley has agreed to provide around 200,000 euros for each of its other exploration efforts at its properties in France and Italy, leaving the management free to find more prospects. Meanwhile, we have past assurances from the management that there will be no major fundraisings at the current level, which affirms our positive, but speculative approach to the share price prospects. The current 1p level clearly does not reflect the potential of any of the projects, and as such we continue to rate this as a 'speculative buy'

[egoi] 20/11/2005 12:34

hi Latif's it is exactly the same as any other (also Crest) with the exception that some online brokers require a phone call and if you want significant quantity they will take it to market. But no meaningful difference.
Try here for info: www.unquoted.co.uk and www.ofex.com
It is an amazing discovery imho.

[latifs100] 20/11/2005 12:30

how do u buy ofex stocks?

[egoi] 20/11/2005 10:21

The stock is Heritage Petroleum on Ofex. (Ofex:HEP).

PLEASE DO NOT CONFUSE WITH THE ADVFN EPIC HEP which brings up a US stock.

It has a 25% stake in a project that has just announced a bigger gas strike than that by VOG. With a market cap of under half a million!! And the shares have not moved, still at an all time low. Admittedly VOG should be in production a bit quicker. But HEP also has the advantage of being in France, without harsh winters and with easy access.

The excitement surrounds the Lorraine basin in France.


Ofex listed it may be, with a market cap that is miniscule under half a million, with a horrid spread, and cash strapped, so i guess the catch could be any of these; or the fact the gas is methane............... but

An estimate of 991 billion cubic feet at the two sites.

The risks i have already referred to mean it is for brave players only prepared to risk the lot in return for aconceivably absolutely massive multi-bag..

To compare with VOG for a moment (market cap over 100 million on today's rise, HEP's less than 0.5 million) The FT is saying of the VOG find: 'Independent consultants DeGoyler & MacNaughton confirmed that Victoria had discovered 500bn cubic feet of recoverable gas, up from the previous estimate of 16bn cubic feet, at its West Medvezhye gas and condensate project in the Yamal Nenetsk region of Russia..........The discovery is believed to be the largest discovery of natural gas by an Aim-listed company. One analyst said: "It's certainly the biggest in many years. It's huge..............'

This appears to be BIGGER.

Here's the news:

'HIGHLIGHTS
INITIAL GAS IN PLACE (GIP) ESTIMATE OF 991.2 BCF (979.4 PJ) FOR LORRAINE
PERMIT, FRANCE.
INCLUDING;
* 414.9 BCF (410.0 PJ) AT SAINT AVOLD; AND
* 576.3 BCF (569.4 PJ) AT ALSTING.
PREPARATIONS BEING FINALISED FOR FURTHER CORE DRILLING IN EARLY 2006 PRIOR TO A
PILOT PRODUCTION PROGRAM.

LORRAINE, EASTERN FRANCE
Heritage Petroleum Plc and Kimberley Oil NL (`Kimberley') are pleased to
announce the completion of a Coal Bed Methane (`CBM') inventory assessment for
two major areas within their Lorraine Permit in eastern France.
The results of the assessment are;

LORRAINE PERMIT GAS IN PLACE (GIP)
Billions of Billions of Petajoules Category
cubic metres feet
(Bm3) (Bcf) (PJ)
Saint Avold 11.8 414.9 410.0 GIP
Alsting 16.3 576.3 569.4 GIP
TOTAL 28.1 991.2 979.4

1 Petajoule = 1,000,000,000,000,000 joules or 30 million Kilowatt hours

The GIP calculations are based on definitive polygonal resource estimation
techniques over the extensive drill core and petrophysical database. Due to the
high level of reliability of the GIP calculations, it is expected that over 50%
of the resource will be able to be categorised at higher levels of confidence
according to the Petroleum Reserves Definitions of the Society of Petroleum
Engineers.

The two areas comprise 68 Sq km in total or approximately 15% of the entire
Lorraine Permit of 460 Sq km. In addition, a further 528 Sq km adjoining the
Lorraine Permit and covering the southern extensions of the Lorraine Basin are
under application by Heritage and Kimberley.

INTRODUCTION
Heritage which was granted the Lorraine Permit in November 2004 and Kimberley
is earning a 75% interest by producing a reservoir report. The permit
encompasses a significant part of the Lorraine Basin and has historical coal
production in excess of 850 million tonnes. The coal seams within the permit
area are of Carboniferous age and are characterised as black, gassy, high
ranking coals.

Gas in Place estimates have been calculated over coals shallower than 1500
metres and are based on the extensive data base of Charbonnages de France
(CdF), the French state owned coal mining company. The CdF data is detailed and
has enabled Kimberley to identify areas which have a high CBM content per unit
area. In the greater Lorraine Basin, CdF have drilled in excess of 600 fully
cored holes to support their coal mining activities. For over 30% of these
holes detailed gas content measurements have been made. Evaluation of the data
base covering additional potential resource areas is continuing.

SAINT AVOLD
Gas in Place volume for the Saint Avold block has been calculated using
polygonal resource estimation techniques over an area of 32Sq km and is
principally based on core drilling and gas content data. Average gas content
used in calculations for the north section of the block was 355 standard cubic
feet per tonne (Scft) reducing to an average of 284 Scft towards the south of
the block. The coals in the Saint Avold area occur as three packets of seams
over a gross vertical interval in the range 220 to 240 metres and net coal is
in the range 8 metres to 75 metres (average 34.7 metres). Generally the coal
measures have younger cover of 500 to 800 metres thickening to the south.

ALSTING
Gas in Place volume for the Alsting block has been calculated over an area of
36 Sq km and is based on core drilling and seismic data. Average gas content
used in calculations is 353 Scft. Gas contents of over 750 Scft have been
recorded. The axis of the Alsting Anticline marks a zone of coal thickening and
enhanced permeability. The coals in this area occur as six packets, four
packets with good CBM potential from depths between 880 metres to 1,250 metres.
Net coals range up to 32.8 metres from a depth of 876 metres as measured in the
Johansviller well drilled near the crest of the anticline.

PREVIOUS ESTIMATES
The previous licence holder Enron Exploration France (Enron) calculated that
the coals in the Lorraine Basin contained a CBM Gas in Place resource of 6.9
trillion cubic feet (Tcf) of methane within an area of 680 Sq km and to a
maximum depth of 1,500 metres. For the Saint Avold area covering 416 Sq km,
Enron estimated 4.5 Tcf within the Westphalian `D' seam with an average net
coal thickness of 30 metres and an average gas content of 318 Scft.

RESOURCE EXPANSION
The GIP resource is based on an area comprising 68 Sq. km in total or
approximately 15% of the entire Lorraine Permit of 460 Sq km. In addition,
Heritage and Kimberley have a further 528 sq km under application adjoining the
Lorraine Permit and covering the southern extensions of the Lorraine Basin. The
Kimberley resource area forms a part of the area used in the Enron resource
calculations. Based on this and the initial analysis of areas outside of Saint
Avold and Alsting, it is expected that significant increases to Kimberley's GIP
calculations are likely.

In addition, significant quantities of methane within sediments and adjacent to
the coal seams has been identified. The presence of methane in associated
sediments is shown by CdF's analysis to be ubiquitous. Initial computations
from one area in the Saint Avold block shows that the amount of methane in the
sediments is at least 50% of that held within the coals.

PROGRAMS
As a first step towards development of these methane deposits Kimberley will
commence additional core drilling in early 2006 to provide further
petrophysical parameters prior to pilot production. Pilot production should
commence in the second half of 2006.

Heritage regards the commercial development of this major resource as one of
its principal objectives. There is a ready market for the gas which can be sold
into the inter city gas grid. Gas prices are robust in western Europe. The
current border price for natural gas is in the range of *6 to *8 per gigajoule
(1,000,000,000 joules) ( which equates to *4.00 to *5.30 per thousand cubic
feet (mcf)).

let me know all the catches, i appear to have missed them!

[andy] 13/10/2004 09:48

An article from www.oilbarrel.com


13.10.2004
Heritage Keen To Start CBM Work In France - And Ponders AIM Listing To Fund New Opportunities

After years of delay and frustration, Ofex-quoted Heritage Petroleum looks set to start work on its coal bed methane (CBM) properties in France.

"We expect to get approval from the French authorities within the next week or so and then we will start work, which we hope will be within the next 30 days," Heritage's chairman and chief executive Paul Rey told oilbarrel.com. "It's taken about two years to get here, which has been very frustrating, but it should be worth it."

Once approval has been granted, Heritage and its joint venture partner, Kimberley Oil of Australia, will start researching the original coal mining activities on its Bleue Lorraine permit.

"We hope to drill at least one hole within the next 12 months to check the quality of the gas and the amount of gas in some of the old coal seams," said Rey.

Analysis of the data on the coal-bearing sequences of the Lorraine Basin shows that prime CBM prospectivity occurs within the Bening and Alsting Anticlines, both of which lie within Heritage's Bleue Lorraine application area. Coal mining personnel in the area have confirmed that gas is produced in the existing mines, with the produced gas fed into a gas reticulation system and sold to electricity producers.

The company is also finally seeing progress on its Italian permit, where it holds rights to the CBM potential of the Sulcis coalfield.

"Kimberley is getting a crew together and getting costs on running some seismic to identify where the seams are," said Rey. "We expect to start that work within the next month. It's all starting to come together now."

Heritage is also keeping a watching brief on new opportunities to add to its portfolio, which was reduced after it abandoned its oil and gas properties in Michigan in the US, where landholder issues were impeding progress.

"Because we are totally joint-ventured in our current projects, with someone else doing the work and spending the money, we are in a position where we can look for other projects," said Rey, who added that the company is keen to keep its European focus. "We are continuously looking for new projects."

Heritage is also eying a move up to London's Alternative Investment Market in order to raise the funds for future growth. "Ofex is not ideal," said Rey. "If you want to raise reasonable sums of money then it's easier to do it on another exchange. We are looking to move up to AIM but we'll get all of our ducks in a row first."

[bbmuppet] 16/1/2004 16:46

Roland,

Any views on this double bottom at 2.25p?