Interesting stock to watch-Buru Energy(BRU)

[Ajax]

Normally I don't think there is much point in posting information on a stock when this is a property investing forum.

However this stock is starting to look like a good long term property play. Wait 5 years and you could substantial capital growth/asset appreciation.

Buru Energy (BRU) has a large proportion of the Canning basin in the Kimberley tied up under exploration permits. They are looking for oil and particularly gas. Those living in WA may already be very familiar with this stock.

This week Buru Energy and joint venture partner, Mitsubishi, obtained a State agreement from the WA govt. The WA govt seem to think that the jv will have the gas to deliver for many years to come. Articles on the State government agreement follow:-

http://www.theaustralian.com.au/bus...th-pipeline-deal/story-e6frg9df-1226512575712

http://www.abc.net.au/news/2012-11-...tic-for-domestic-market/4363492?&section=news


Disclosure: I hold (and intend to hold long-term)

 

[Ajax]

Canning Basin gas/oil

Fortescue have just bought into the Canning Basin

http://www.theaustralian.com.au/bus...-into-oil-sector/story-e6frg9ef-1226517367930

"FORTESCUE Metals Group has made a surprise entry into the oil and gas exploration sector, signing an up to $14 million, non-binding deal to take an 18 per cent stake in explorer Oil Basins and a 25 per cent stake in West Australian shale ground near Derby.

Oil Basins duly announced it planned to become the “new third force” in developing the onshore Canning Basin’s shale. Presumably the other two forces are Buru Energy and New Standard Energy, who have interests in the Canning...."

and Buru (BRU) have today announced drilling update on Ungani North 1 (and the market likes the announcement..share price up over 8%)

"Since the last progress report the well has been drilled out from the casing shoe at 2,543 metres, an FIT conducted, and the well has then been drilled ahead to a current depth of 2,578 metres as at 06:00 hours AWST.

The top of the interpreted dolomitic reservoir section was encountered at approximately 2,553 metres with associated oil shows and indications of vuggy porosity in cuttings samples and erratic drill rates continuing to the current depth. Significant increases in mud gas readings to over 10 times background have also been noted.

These results to date are encouraging, and indicate the presence of an active, oil prone petroleum system in a reservoir that appears to be similar to that encountered at the Ungani Oilfield. However, a full penetration of the section followed by an extensive wireline logging program is required to determine the significance of the results to date. "

 

[willair]

Thanks for that,the only one i've had a run with of late is "SIR",held for several years, bottom of draw fallen angle high risk equity start-up..
I was going to cut and run at $3.10-$3.15 got greedy thought $3.50
was there then next morning i wake up and it's gone down 60 cents
they either pay-off bigtime or you get nothing..good luck ..

 

[Ajax]

Willair,

very bullish article on Sirius today (16/11/12) in Fin Review.

 

[willair]

I know Mate,all's good i just wish a few others like BWN, would kick in the bottom draw is full of those start-ups but none of these start-ups whose future earnings are predictable with a high degree of certainty,i just drop 10k on the table and see what happens..
BTW please don't buy BWN MY 10/K is now worth about 700 bucks,imho..

 

[Ajax]

It will be interesting to revisit this chart in a year's time

 

[willair]

Puts a smile on my face when i read about high-end analysts and the 2-100 stage models they use for calculating future earnings,all it ever breaks down too is the certain number of years of slower growth,then a period of constant growth at a slower rate,i have run with several like SIR over the past 10 years but the only one that has broken all the trends is CBA,i have a 20 dollar duty free burbon in the safe waiting for it too go above 60 dollars again..


http://www.mauldineconomics.com/landing/yield-shark-video-landing-v1/MEC014EM1112A

 

[Ajax]

BURU ENERGY trading getting interesting now...just closed at $3.24

 

[redwing]

Here's another oil & gas speccy Ajax

 

[Aaron Sice]

i can't see a direction in those charts worth trading.

if i can't react on a chart, i don't trade. why? because everyone else is looking at the same chart.

i refuse to trust a company's "fundamentals" - it's like trying to read labor or liberal party policy propaganda.

 

[willair]

Here's another oil & gas speccy Ajax

This is another chart i use too target "EGO" as a day week trader made some after tax money on "EGO",but in my simple opinion they are all the same add a bit of media spin,high volume,and your away,inbetween you sit and wait..imho..

 

[Ajax]

Buru Energy 30 November 2012 close (daily chart for 12 months)

 

[willair]

Buru Energy 30 November 2012 close (daily chart for 12 months)

Just have to ask,did you cash in when it went above the 3$$$ mark or is it a longterm hold for yourself,they all seem to go in a pattern,like SIR which i sold out off around the $2.78 mark,$3.50 was just too far away,plus it went into the very very low $2.00 mark a few days after that,sometimes anyone can pick the motivations that propel them in either directions,other times it's just market-place reality with a small mix of media high volume spin..

 

[Deltaberry]

Alcoa has something to do with its fields no?

 

[willair]

Alcoa has something to do with its fields no?

Not sure on Alcoa,i only like start-ups they either pay big time or end up in the bottom of the draw..

 

[Ajax]

Hi Willair,

am still holding (and wish I'd taken profits at the recent high of $3.29). Closed at $2.47 on 17/12/12.

The stock needs some positive news flow such as oil/gas drilling results which should happen in January.

I feel like one of the foot soldiers in this rhyme....

"The Grand old Duke of York he had ten thousand men
He marched them up to the top of the hill
And he marched them down again.
When they were up, they were up
And when they were down, they were down
And when they were only halfway up
They were neither up nor down. "

 

[Ajax]

Hit a recent low of $2.30 and looks to be recovering. Closed at $2.40 on last trading day of 2012.

 

[datto]

Imagine if you sold at 3.29 and bought back in today!

You'd have all the shares previously owned plus a swag of cash! Oh hindsight!

 

[Ajax]

I got out of Buru ages ago.

Here it is at $1.20 today. Maybe I should stick to property. Relative Strength Index indicates it is oversold

 

[Ausprop]

wow surprised to see these guys getting hammered - this will be massive