AWE Limited Valuation Report, August 2010 - Strategic and Operational Analysis


#41707

75pages

GlobalData

$ 3500

In Stock


AWE Limited (AWE) is an independent energy company engaged in exploration, development and production of crude oil, natural gas and natural gas liquids. The company owns a diverse and balanced crude oil and natural gas portfolio globally. AWE has producing assets in South East Australia, Western Australia, and New Zealand. Its South East Australia assets contributed around 43.5% of the company’s total production, followed by 33.7% and 22.6% by its New Zealand and Western Australia assets respectively, in 2010. Apart from its producing assets, the company has been executing extensive exploration programs, mainly in Indonesia, New Zealand and Yemen. AWE has a strategy of exploring the acreages adjacent to its existing producing assets in order to boost its shareholder value. 

Scope

Investment Thesis: This section highlights the companies new ventures, liquidity issues, assets analysis, hedging, new projects details, capex funding, geographical results of oil and gas operations, and other related analysis.

Goals and Strategies: Provide highlights on their existing and upcoming challenges with the possible strategies.

SWOT: This section highlights the companies internal strength, weakness, opportunities and threats to better understand their position in the market

Production and Development profile: This section highlights the companies’ forecasted crude oil and natural gas production from their existing and upcoming assets. It also covers the detailed information and analysis on the producing and development assets.

Exploration and M&A trends: This section includes exploration assets information resulted due to new discoveries, new drilling and other activities. Additionally, M&A section highlights the companies’ recent assets transactions, joint ventures, acquisition, and divestment activities during the specified period.

Financial Forecast and Valuation: This section highlights the detailed financial forecast of the companies for coming five years. This section also provides intrinsic value of the companies’ by using different valuation techniques.

Peer Group: This section compares peer group performance with the main companies on the basis of share prices, financial ratios, operational and financial parameters and other related activities.

Reasons to buy

The report will enhance the decision-making capability in a more rapid and time sensitive manner. It will allow you to:

  • Provide detailed analysis to those who are interested in knowing the companies’ existing and future business strategies.
  • Provide in-depth analysis on the companies E&P profiles along with the exploration and M&A updates.
  • Provide valuable insights to those who are tracking oil and gas markets and wants to know the intrinsic value of the companies.
  • Use the analysis for strategy and planning, M&A identifications, and competitor analysis
Table of Contents

1 Table of contents 3

1.1 List of Tables 5
1.2 List of Figures 6

2 AWE Limited, Company Overview 7

3 AWE Limited, Investment Summary 11
3.1 AWEs Long Term Growth Dependent Upon its Exploration Program; Disappointing 2010 Exploration Results 11
3.2 Increasing Focus on the Potential in Unconventional Oil and Gas to Drive Shareholders Value; Could be a Risky Drive 12
3.2.1 Onshore Perth Basin, Western Australia 12
3.2.2 Sugarloaf Area of Mutual Interest (AMI), the US 13
3.3 BassGas Project, the Long Term Driver For AWE Whereas Long Term Production at Tui Project seems Unappealing 14

4 AWE Limited, SWOT Analysis 16

4.1 Strengths 16
4.1.1 Balanced Approach towards Exploration and Acquisition 16
4.1.2 Sustainable Liquidity Coupled with Unlevered Capital Structure 16
4.2 Weakness 16
4.2.1 Lacking Technical Expertise to Develop Unconventional Plays 16
4.3 Opportunities 16
4.3.1 Exposure in Unconventional Oil and Gas 16
4.3.2 Acquisition of Interest in T18/P Permit 17
4.4 Threats 17
4.4.1 Declining Production from the Tui Project due to Natural Decline 17
4.4.2 Disappointing 2010 Exploration Program 17

5 AWE Limited, Goals and Strategies 18
5.1 Increasing its Focus to Tap Potential in Unconventional Oil and Gas 18
5.2 Resuming its Exploration Program Despite Discouraging Results in 2010 18

6 AWE Limited, Production and Development Overview 20
6.1 Production Profile 20
6.2 Production and Development Overview 21
6.2.1 BassGas Project, South East Australia 21
6.2.2 Otway Basin, South East Australia 23
6.2.3 The Cliff Head Project, Perth Basin, offshore Western Australia 25
6.2.4 Perth Basin, onshore Western Australia 28
6.2.5 Taranaki Basin, offshore North Island 29
6.2.6 Summary of Producing Assets 31

7 AWE Limited, Exploration Overview 32
7.1 Exploration Profile 32
7.1.1 Bass Basin, Offshore Tasmania 33
7.1.2 Otway Basin, Offshore Victoria 33
7.1.3 Onshore Perth Basin, Western Australia 33
7.1.4 Taranaki Basin, New Zealand 33
7.1.5 Indonesian Exploration Project 34
7.1.6 Yemen Exploration Project 35
7.1.7 Argentina Gas Project 36
7.1.8 Summary of Exploration Assets 36

8 AWE Limited, M&A Profile 37

9 AWE LImited, Forecast Production and Financial Statements 39

9.1 Income Statement (20082015) 41
9.2 Balance Sheet (20082015) 42
9.3 Cash Flow Statement (20082015) 43
9.4 Financial Ratios 44

10 AWE Limited, Valuation 46
10.1 Net Asset Value 46

11 AWE Limited, Peer Comparision 49
11.1 Share Price Performance 49
11.2 Operational and Financial Performance 49
11.3 Key Financial and Operational Ratio 52

12 AWE Limited, Key Risks 53
12.1 Political Instability 53
12.2 Fluctuating Crude oil and natural gas prices 53
12.3 Reserves and Drilling operations 53
12.4 Competition 53
12.5 Significant Exposure Across trading, treasury and foreign exchange Risk 53

13 AWE Limited, Detailed Financial and Operational Metrics 54
13.1 AWE Limited, Total Oil and Gas, Reserves and Production 54
13.1.1 Total Crude Oil and Natural Gas Production and Reserves Trend, 2004-2009 54
13.1.2 Total Crude Oil & Natural Gas Production and Reserves by Country/Region, 2004-2009 55
13.1.3 Total Crude Oil and Natural Gas Reserve Changes, 2004-2009 56
13.2 AWE Limited,Crude Oil/Liquids Production and Reserve 57
13.2.1 Crude Oil/Liquids Production and Reserve Trend, 2004-2009 57
13.2.2 Crude Oil Production and Reserves by Country/Region, 2004-2009 58
13.2.3 Crude Oil/Liquids Reserve Changes, 2004-2009 59
13.3 AWE Limited,Natural Gas Production and Reserve 60
13.3.1 Natural Gas Production and Reserve Trend, 2004-2009 60
13.3.2 Natural Gas Production and Reserves, By Country/Region, 2004-2009 61
13.3.3 Natural Gas Reserve Changes, 2004-2009 62
13.4 AWE Limited,Total Crude Oil and Natural Gas Reserves Life Index 63
13.4.1 Total Crude Oil and Natural Gas Reserves Life Index, 2004-2009 63
13.4.2 Total Crude Oil and Natural Gas Reserves Life Index, By Country/Region, 2004-2009 64
13.5 AWE Limited, E&P Costs Trends 65
13.5.1 Upstream Capital Expenditure, 2004-2009 65
13.5.2 Acquisition Costs by Country/Region, 2004-2009 66
13.5.3 Exploration and Development Costs, By Country/Region, 2004-2009 67
13.6 AWE Limited, Results of Oil & Gas Operations Trend 68
13.6.1 Oil and Gas Revenue and Expenses, 2004-2009 68
13.6.2 Oil and Gas Revenue and Expenses, By Country/Region, 2004-2009 69
13.7 AWE Limited,Oil and Gas Performance Metrics 71

14 Appendix 72
14.1 Methodology 72
14.1.1 Coverage 72
14.1.2 Secondary Research 72
14.1.3 Primary Research 73
14.2 Data Sources 73
14.2.1 Company Source 73
14.2.2 SEC/Other Regulatory Filings 73
14.2.3 Agency Reports 73
14.2.4 Other Sources 73
14.3 Methodology for Company Valuation 73
14.4 Expert Panel Validation 74
14.5 Units of Measure 74
14.6 About GlobalData 75
14.7 Disclosure 75
14.8 Disclaimer 75
Table 1: AWE Limited, Key Events, January 2009 April 2010 10
Table 2: AWE Limited, Planned Exploratory Wells with Results, 20092010 11
Table 3: AWE Limited, Revenue Contribution From Projects, 20092012 14
Table 4: AWE Limited, Results of New Zealand Exploration Program, 20092010 17
Table 5: AWE Limited, Exploration Targets Details, 2010 2011 19
Table 6: AWE Limited, Producing Assets Details, 2010 20
Table 7: AWE Limited, The BassGas Project Details, 2010 22
Table 8: AWE Limited, The Casino Project Details, 2010 25
Table 9: AWE Limited, The Cliff Head Oil Project Details, 2010 27
Table 10: AWE Limited, Interests in Onshore Perth Basin Fields, 2010 28
Table 11: AWE Limited, The Tui oil Project Details, 2010 30
Table 12: AWE Limited, Producing Assets Summary 31
Table 13: AWE Limited, Exploration Targets Details, 2010 2011 32
Table 14: AWE Limited, PSC Contract in East Java Basin, 2010 34
Table 15: AWE Limited, Equity Partners Details, Block 7, 2010 35
Table 16: AWE Limited, Exploratory Assets Summary, 2010 36
Table 17: AWE Limited, Recent Transactions as a Buyer, 20072010 37
Table 18: AWE Limited, Recent Transactions as a Seller, 20072010 38
Table 19: AWE Limited, Forecast Production ($m), 20072015 39
Table 20: GlobalData, Price Forecast, 20102015 39
Table 21: AWE Limited, Income Statement ($m), 20082015 41
Table 22: AWE Limited, Balance Sheet ($m), 20082015 42
Table 23: AWE Limited, Cash Flow Statement ($m), 20082015 43
Table 24: AWE Limited, Profitability Ratios, 20082015 44
Table 25: AWE Limited, Other Financial Ratios, 20082015 45
Table 26: GlobalData, Price Forecast, 20102014 46
Table 27: AWE Limited, Net Asset Value ($m and $/share), 2010 47
Table 28: AWE Limited, Prospective Acreage & Non Proven Reserves, 2010 47
Table 29: AWE Limited, NPV Per Unit Crude Oil & NGL, 2010 47
Table 30: AWE Limited, NPV Per Unit Natural Gas, 2010 48
Table 31: AWE Limited, NPV Per Unit Total Crude Oil and Natural Gas Production, 2010 48
Table 32: AWE Limited, Sensitivity Analysis on Fair Value ($/share), 2010 48
Table 33: AWE Limited Vs. Peer Group, Operational and Financial Performance, 2009 50
Table 34: AWE Limited and its Peer Group Comparison, Financial Ratios, 2009 52
Table 35: AWE Limited, Total Crude Oil and Natural Gas, Production and Reserves, MMboe, 2004-2009 54
Table 36: AWE Limited, Total Crude Oil & Natural Gas Production and Reserves, By Country/Region, MMboe, 2004-2009 55
Table 37: AWE Limited, Total Crude Oil and Natural Gas Reserve Changes, MMboe, 2004-2009 56
Table 38: AWE Limited, Crude Oil Production and Reserves Metrics, MMbbl, 2004-2009 57
Table 39: AWE Limited, Crude Oil Production and Reserves, By Country/Region, MMbbl, 2004-2009 58
Table 40: AWE Limited, Crude Oil Reserve Changes, MMbbl, 2004-2009 59
Table 41: AWE Limited, Natural Gas Production and Reserves Metrics, Bcf, 2004-2009 60
Table 42: AWE Limited, Natural Gas Production and Reserves, By Country/Region, Bcf, 2004-2009 61
Table 43: AWE Limited, Natural Gas Reserve Changes, Bcf, 2004-2009 62
Table 44: AWE Limited, Oil and Gas Reserves Life Index, Years, 2004-2009 63
Table 45: AWE Limited, Oil and Gas Reserves Life Index, By Country/Region, Years, 2004-2009 64
Table 46: AWE Limited, Upstream Capital Expenditure, $m, 2004-2009 65
Table 47: AWE Limited, Proved and Unproved Acquisition Costs, By Country/Region, $m, 2004-2009 66
Table 48: AWE Limited, Exploration and Development Costs, By Country/Region, $m, 2004-2009 67
Table 49: AWE Limited, Revenue and Expenses, $m, 2004-2009 68
Table 50: AWE Limited, Revenue and Expenses, By Country/Region, $m, 2004-2009 70
Table 51: AWE Limited, Oil and Gas Performance Metrics, 2004-2009 71
Figure 1: AWE Limited, Global Operations, 2010 7
Figure 2: AWE Limited, Financial & Operational Overview, 20072010 8
Figure 3: AWE Limited, Share Performance, September 2009 September 2010 9
Figure 4: AWE Limited, Onshore Perth Basin, 2010 12
Figure 5: AWE Limited, Sugarloaf Area of Mutual Interest (AMI), 2010 13
Figure 6: AWE Limited, BassGas Production (MMboe), 20072015 15
Figure 7: AWE Limited, Total Production From Upstream Assets, MMboe, 20072015 20
Figure 8: AWE Limited, BassGas Project, Operation Map, 2010 21
Figure 9: AWE Limited, BassGas Project Production, Thousand boe, 20072015 22
Figure 10: AWE Limited, The Otway Basin Overview, 2010 24
Figure 11: AWE Limited, The Casino/Henry/Netherby Project Production, MMboe, 20072015 25
Figure 12: AWE Limited, The Perth Basin Overview, 2010 26
Figure 13: AWE Limited, The Cliff Head Project Production, MMboe, 20072015 27
Figure 14: AWE Limited, The Onshore Perth Basin Production, MMboe, 20102015 28
Figure 15: AWE Limited, The Taranaki Basin Overview, 2010 29
Figure 16: AWE Limited, The Taranaki Basin Production, MMboe, 20082015 30
Figure 17: AWE Limited, Assets Production, boe000, 20072010 31
Figure 18: AWE Limited, The East Java Basin Overview, 2010 35
Figure 19: AWE Limited and Peer Group, Relative Share Price Performance Index, March 2009March 2010 49
Figure 20: AWE Limited, Operational and Financial Parameters in $/boe, 2009 51
Figure 21: AWE Limited, Total Reserves and Production, MMboe, 2009 51
Figure 22: AWE Limited, Total Crude Oil and Natural Gas, Production and Reserves, MMboe, 2004-2009 54
Figure 23: AWE Limited, Total Proved Oil & Gas Reserves, By Country/Region, MMboe, 2004-2009 55
Figure 24: AWE Limited, Total Crude Oil and Natural Gas Reserve Changes, MMboe, 2009 56
Figure 25: AWE Limited, Crude Oil Production and Reserves Metrics, MMbbl, 2004-2009 57
Figure 26: AWE Limited, Total Proved Oil Reserves, By Country/Region, MMbbl, 2004-2009 58
Figure 27: AWE Limited, Crude Oil Reserve Changes, MMbbl, 2009 59
Figure 28: AWE Limited, Natural Gas Production and Reserves Metrics, Bcf, 2004-2009 60
Figure 29: AWE Limited, Total Proved Gas Reserves, By Country/Region, Bcf, 2004-2009 61
Figure 30: AWE Limited, Natural Gas Reserve Changes, Bcf, 2009 62
Figure 31: AWE Limited, Oil and Gas Reserves Life Index, Years, 2004-2009 63
Figure 32: AWE Limited, Upstream Capital Expenditure, $m, 2004-2009 65
Figure 33: AWE Limited, Revenue and Expenses, $m, 2004-2009 68
Figure 34: AWE Limited, Depreciation, Depletion & Amortization , By Country/Region, $m, 2004-2009 69
Figure 35: AWE Limited, Oil & Gas Revenue, By Country/Region, $m, 2004-2009 69
Figure 36: AWE Limited, Production Expenses, By Country/Region, $m, 2004-2009 70
Figure 37: AWE Limited, Oil and Gas Performance Metrics, 2004-2009 71