Ezra 1 (May 08 - Dec 09)

[Aspellian]

OLD NEWS on STP ENERGY - the company with an "interesting arrangement" with Ezra which i will term as creative way of accounting stuff - may not be bad! just more interesting transactions for auditors to audit!!! not so boring lah!! hahahahah!!

better have disclaimer first wait Musicwhiz shoot me off the tree again using hymns and music notes!!!

___________________________________________________
STP debut looks good to hit gas

Singapore-based company STP Energy is on the threshold of a shallow-water wet gas discovery with its inaugural exploration well in New Zealand, writes Russell Searancke.

The privately-owned outfit said preliminary log analysis of the Awakino South 1 well indicated "encouraging signs of wet gas" in the intra-Turi formation over a 103-metre zone below 2810 metres.

Based on initial data, the well hit between 15 metres and 34 metres of net gas pay in the formation over an interval of 2810 metres to 2913 metres.

The well is still being drilled into the Mangahewa formation on its way to a total depth of 3400 metres. The operator is also obtaining information on fluids already seen.

STP Energy spudded the Awakino South 1 well on 30 August with the jack-up rig Ensco 56.

The company has reserved the unit for a second well Kahu 1 but sources said it was not certain this option would be exercised.

Awakino South 1 is in Block PEP 38479 seven kilometres from the Taranaki coast. If confirmed as a discovery, it will be a much-needed boost to New Zealand's upstream business.

Apart from this year's small find with the Momoho 1 satellite target by the Kupe field partners, there has not been a new field discovery off New Zealand for several years, despite many attempts.

Singapore-registered companies own all of Block PEP 38479 in the Taranaki basin following a change of ownership in April, when privately-owned US company Discovery Geo sold the permit to Singapore's Scorpius Holdings.

Discovery Geo had held the permit for years and carried out pre-exploration work to identify the Awakino South 1 and Kahu 1 prospects. Scorpius then sold the permit to STP Energy.

The rig is being charged to Asian Drilling Services at a dayrate in the low $160,000s for Awakino South 1, and will increase to the high $180,000s for the second well, according to Ensco.

--------------------------------------------------------------------------------
Thursday, 23 October, 2008, 23:01 GMT | last updated: Thursday, 23 October, 2008, 23:01 GMT

[Aspellian]

Sept Broker reports and moving target prices:
Sept 14 - OCBC - S$2.00 (when price is S$1.89)
Sept 14 - DBS - S$2.20 (when price is S$1.89)
Sept 17 - DMG - S$2.39 (when price is S$1.91)

Ezra hit a high of S$2.01 today, close at S$1.97 on high volume.

See who else can give a higher Target Price in this uptrend.

[Aspellian]

17 Sept
Ezra Holdings: Poised to benefit as O&M climate improves (BUY\S$1.91\Target S$2.39)
Serene Lim (62323897, [email protected])

Recent operational updates. Ezra announced yesterday that it has awarded Triton Group Holdings a
US$23m contract to build five new Remotely Operated Vehicles (ROVs). Other recent operational
updates include

1. Ezra entered into a new profit sharing agreement to manage and operate vessels without initial capex outlay. We view this as a prudent strategy move to increase its fleet size without any financing strain

<TOL: I viewed as creative and thinking out of box by Lionel Lee (CEO) - now Ezra is like an ARA - if they scale up on this (WITH NO CAPEX OUTLAY), then the growth potential is huge... but is it so easy to scale up? Anyone have any clues on who this offshore specialist fund is?? can PM me if not suitable to share here. thanks in advance!>

2.Ezra secured new and renewal contracts for three AHTS with charter periods (including option) up to six years.

3. Ezra’s 49%-owned associate, EOC, is rumoured to have secured Premier Oil’s FPSO chartering contract for Chim Sao oil project in Vietnam. Incorporating the recent positives, we raise FY10 net profit by 3% and introduce FY11 earnings. Ezra is currently trading at FY11 P/E of 9x and we opine this is not high against FY06-FY11 CAGR earnings of 37% on the back of our blue-sky scenario assumptions.

<TOL: Note that Vietnam is playing catch-up in opening up and ramping its O&G production. Premier Oil is also relatively aggressive in expanding its operations vs many companies scaling back capex or has lack of funds.
So it is positive news for Ezra to have experience in vietnam and working with Premier Oil.>

We roll over our valuation to FY11 and revise up our P/E parameter on Ezra’s FY11 core operations to 15x. Our target price is raised to S$2.39 (from S$1.51 previously).

<PE of 15X - hmmm... anyhow one... FY09 3Q09 profits are US$50mm vs FY08 full year of US$49.9mm... if things dun go wrongly and contribution from Ezion (15% associate) is higher, then should have a higher FY09 profits - which could be taken positively by investment community as FY09 supposedly to be a VERY DIFFICULT year....

Maintain BUY.

High vessel utilisation rate justifies fleet management program. Ezra announced that it would be expanding its fleet to include five new ROVs. Late last month, Ezra said that it has entered into an operating agreement with an offshore specialist fund to manage four of its 5,000 bhp AHTS for five years in return for a half-share of the net profit earned. We estimate 80% of Ezra’s current fleet has contract coverage in FY10. We believe with such high contract rate, this fleet management program is the right strategy for Ezra, for it enhances Ezra’s fleet without causing any financing strain.

Secures new and renewal charters at US$1.90/bhp per day. Our back-of-the-envelope calculation suggests that the daily chartering rate for Ezra’s recent contract is at an average of US$1.90/bhp per day (assuming each AHTS has a capacity of 12,000 bhp), marginally less than management’s guided rate of US$2/bhp. We are comforted that Ezra has managed to secure contracts at these rates considering North Sea spot market is currently experiencing weak rates.

Positives from associates EOC and Ezion. Ezra’s 49%-owned associate, EOC, is rumoured to have secured Premier Oil’s FPSO chartering contract for Chim Sao oil project in Vietnam. We estimate this charter contract to be valued at US$500m for a charter period of 10 years, implying day rates of <US$200k. Ezra’s other 15%-owned associate, Ezion, may see earlier revenue stream following the recent Australian government’s final approval for Gorgon Gas development.

[Aspellian]

>News from Aug 09 showing a bit of background of the Premier Oil deal. >

Imminent deal may kick-start Chim Sao project for UK independent
Premier to net FPSO
By Russell Searancke

Premier Oil's protracted attempts to find a floating production, storage and offloading vessel for its Chim Sao oil project off Vietnam are nearing a conclusion, with just two contenders left in the ring in a politically charged tussle.
Premier has been in talks with Bluewater of the Netherlands for several months over the potential lease of the Glas Dowr FPSO for Chim Sao, and well-placed sources said the terms of a deal have been agreed, but PetroVietnam and the other field owners have not yet given their approval.

Bluewater has arranged a consortium of banks to finance the upgrade of its floater, and has partnered with Vietnam's Petroleum Technical Services Corporation to provide operations and maintenance services on the FPSO, in the event the Netherlands player wins the job, added sources.

However,the company originally selected by Premier as the Chim Sao contractor - Emas Offshore of Singapore - is desperate to get back in the race and is working hard to convince Premier that it can carry out and finance the contract.

Premier, for its part, is adopting a“wait and see”approach, said a well-placed source, meaning that if Emas can put together a financing arrangement and prove that it works, then Premier will look at it.

Another source suggested that Bluewater was the preferred contractor based on a commercial and technical assessment, but he added that“politics is a strong factor”that could still see Emas emerge victorious.

A contract could be handed out by the end of this month at the earliest, the source said, while acknowledging that delays are to be expected in Vietnam. A floater analyst said Bluewater had expected to have a contract in hand earlier this month but pressure from Emas has stalled any such conclusion.

“No one should take anything for granted until they have a signed contract,”he said.“It could still go either way.”Chim Sao hit a speed bump in late 2008 when Emas was unable to fund the vessel it had proposed. Premier then signed a letter of understanding with Norway's BW Offshore for the charter of the speculative newbuild FPSO Nexus 1, which is owned by Nexus Floating Production.

However, that deal also fell over, because Nexus was unable to restructure its debt.

Sources said the recent purchase by Premier of Israeli partner Delek's Chim Sao equity would help the joint venture make final development decisions.

Premier said it paid $72 million in cash for Delek's 25% stake in Block 12W, plus future payments of up to a total of $10 million contingent on the development of fields other than Chim Sao.

A Delek spokesman said the rationale for divesting its Chim Sao equity was that“the upside of this project is well defined and not very significant, as a good part of the exploration potential in the block has already been drilled”.

He said the project was based on a proven and probable reserves number for Chim Sao of nearly 50 million barrels and about 12.5 million barrels at the satellite Dua field.

“The nature and magnitude of this project are therefore such that can properly be priced, as was the case in this transaction,”said Delek.

Premier chief executive Simon Lockett said he was pleased to have secured extra equity in the licence“at an attractive price”.

The Chim Sao FPSO will have storage capacity of between 600,000 and 1 million barrels of oil, and oil production capacity of about 50,000 barrels per day.

Premier holds a 53.125% operating stake in the project, where it is partnered by Australia's Santos on 31.875% and PetroVietnam E&P with 15%.

--------------------------------------------------------------------------------
Thursday, 13 August, 2009, 23:01 GMT | last updated: Friday, 14 August, 2009, 01:43 GMT

[Aspellian]

French company stirs up interest in projects off East Kalimantan
Total focus on Indonesia bids
By Russell Searancke
Tan Hwee Hwee

French energy giant Total will start receiving bids soon for front-end engineering and design on a series of projects off East Kalimantan, Indonesia requiring a combined 10 wellhead platforms and subsea pipelines.Bidders are likely to include WorleyParsons, Technip, Singgar Mulia with Doris Engineering and possibly Saipem. The Singgar-Doris joint venture has bid successfully in the past for Total's Indonesian projects, said sources.

The operator might be in a position to award the FEED contract, which is designated a frame agreement for basic engineering services, by the end of the year.

The workscope will include basic engineering for phase two of the Sisi-Nubi project, South Mahakam phase three, Peciko phase seven and the Bekapai field redevelopment.

Three small WHPs are required each for Sisi-Nubi and South Mahakam, while two apiece are needed at Peciko and Bekapai.

Bids are also due this month for four more turnkey contracts linked to the initial two phases of South Mahakam.

South Mahakam involves building and installing three tripod platforms each expected to weigh more than 1000 tonnes for the Main Stupa, East Mandu and West Stupa fields, and about 80 kilometres of subsea pipelines.
Pre-qualified contenders are allowed to team up to submit bids for one or more of the four contracts - two packages cover construction and fabrication and two cover transport and installation.

Nippon Steel Construction Indonesia (Nisconi) is tipped for some success, given it is invited to bid for all four packages and its track record with the Sisi-Nubi phase one project. J Ray McDermott and Petrosea have also qualified for all four contracts.

Other groups potentially in the bidding mix are SMOE with Global Industries and Indonesia's Timas Suplindo with a local fabricator.

Several other Indonesian constructors invited to participate include Guna Nusa, Meindo Elang Indah, Bakrie Construction and Pal Indonesia. Guna Nusa is said to have withdrawn from the tender to focus on current projects.

The transport and installation contracts have attracted more than 10 potential bidders including Timas Suplindo and Global Industries. Hyundai Heavy Industries has joined forces with Dwisatu Mustika Bumi, and Rekayasa with SapuraCrest, according to sources. Other likely contenders include Saipem, Cal Dive, Swiber and Emas Offshore.

The awards for these contracts are not expected before the end of the year.

Meanwhile, Total has started prequalifying contractors for a project management services contract to support its South Mahakam development.

Production at South Mahakam is due for start-up in 2011 or 2012, with output forecast to hit 14,700 barrels per day of liquids and 114 million cubic feet perday of gas.


--------------------------------------------------------------------------------
Thursday, 17 September, 2009, 23:01 GMT | last updated: Friday, 18 September, 2009, 01:56 GMT

[Musicwhiz]

To observe the business objectively, we have to see if Ezra's plans to develop their subsea division come to fruition, and whether the division lives up to the expectation (and hype). The newsflow thus far has given the impression that everything is flowing smoothly, which is good I guess. But knowing the business world, hiccups tend to appear in places least expected. One good example is the recent loss of their Liftboat Titan 1 owned by Casadilla (KS Energy JV). Whether the ROVs will significantly enhance their deepwater subsea services division is as yet unknown, and as I am not familiar with this aspect of the business, I cannot comment much.

Probably, more light will be shed on the status of their charters (AHTS), MSFV, Shipyard in Vung Tau and HCMC, profit-sharing with fund as well as their subsea expansion progress when their FY 2009 results are released in mid-October 2009.

With so much happening and looking at their pace of expansion, sadly I do not expect them to pay any final dividend.

[Aspellian]

Sept Broker reports and moving target prices:
Sept 14 - OCBC - S$2.00 (when price is S$1.89)
Sept 14 - DBS - S$2.20 (when price is S$1.89)
Sept 17 - DMG - S$2.39 (when price is S$1.91)

Ezra hit a high of S$2.01 today, close at S$1.97 on high volume.

See who else can give a higher Target Price in this uptrend.

Ezra Holdings (EZRA SP): The provider of offshore support logistics services to the oil and gas industry had its share-price estimate raised to $2.64 from $1.91 at BNP Paribas, which has maintained its “buy” rating. Its shares rose 1.1% to $1.88.
Source: The Edge

Target Summary:
Sept 14 - OCBC - S$2.00 (when price is S$1.89)
Sept 14 - DBS - S$2.20 (when price is S$1.89)
Sept 17 - DMG - S$2.39 (when price is S$1.91)
Sept 30 - BNP Paribas - $2.64 (when price now is $1.88)

See who else can give a higher Target Price
<Not vested liao>

[Aspellian]

NuCoastal ropes in EOC at Songkhla
NuCoastal Thailand has contracted Singapore based EOC to install more offshore facilities in line with the planned expansion of the Gulf of Thailand’s Songkhla project.

The contract to be executed in the first quarter of 2010, will include two offshore platforms and one pipeline, subject to a commercial discovery at the Songkhla B field.

EOC’s Lewek Champion will mobilise to Songkhla after completing its current contract with Malaysia’s TL Offshore.

EOC is a unit of Singapore listed Ezra Holdings. It owns and operates three other vessels, two heavylift accommodation crane barges, Lewek Conqueror and Lewek Chancellor, one floating production, storage and offloading vessel, Lewek Arunothai.
--------------------------------------------------------------------------------
Monday, 12 October, 2009, 06:54 GMT | last updated: Monday, 12 October, 2009, 07:08 GMT

upstreamonline
<not vested>

[millionairemind]

Ezra is being sold down on high volume on a day when the market is slightly +ve.... something's cooking...

[Aspellian]

Ezra is being sold down on high volume on a day when the market is slightly +ve.... something's cooking...

Thanks for highlighting.
but surprisingly it came back quite strong from $1.7 to >$2... but then the price/vol movement today - maybe they pushing up the price before selling slowly?
wonder whether it will affect other O&G counters.

see how the story unfolds.

MM, do you look out for any "leaders" in STI? eg. in O&G sector, do you view Ezra, Ezion or Mermaid is a leader?