# EKA - Eureka Energy



## Broadside (30 October 2006)

12.5% interest in Sugarloaf (discussed at length on ADI thread - starting new thread so as not to annoy ADI'ers)...next 2 weeks will be drilling in primary Hosston target

new project announced today, Turkey, another high impact relatively low cost prospect, should get indication of first well mid-late November

market cap (undiluted) ~$22m with 41.5m in the money options exercisable at 20c (expiry March 31 2008)

could be a very interesting month ahead   

===========================================================

ASX RELEASE 30 OCTOBER 2006
Eureka acquires interest in Bismil Oil Prospect in Turkey
First well to spud in early November
Key Points
• Eureka has acquired rights to earn a 20% interest in two exploration Licenses
in South Eastern Turkey
• First of two turnkey farm in wells, the ‘Koyunlu-1’, to spud in early November
2006 and is expected to reach target depth within 2 weeks
• First exploration well located 17 kilometres south and up-dip of the giant West
Raman oil field
• Koyunlu-1 exploration well to drill to 1,380 metres and will test the eastern
portion of a structure with similarities to the Raman field structures.
• The target reservoirs are Cretaceous age carbonates of the Mardin Group,
the same reservoirs which host oil in the Raman fields and numerous other oil
fields in the region.
• The structure has the potential to host recoverable reserves of 31 million
barrels (P50) or 204 million barrels (P90), if oil is present and commercially
extractable.
• Eureka has also acquired an option to increase its interest in the Licences to
45%
Prospect Background
The two Licences, covering an area of approximately 500 square kilometres are
located in South Eastern Turkey in the major oil producing region of that country.
Koyunlu-1 is located about 17 kilometres south of the West Raman oil field (original
oil in place 1.5 billion barrels) and about 40 kilometres south of the Selmo oil field
(original oil in place 500 million barrels), presently operated by an ASX listed
Australian company.
The Koyunlu-1 target is located in a regionally well established oil system and good
oil shows were obtained in the nearest well, which was out of closure some 8
kilometres to the north east. Oil generation, migration and reservoir risk is considered
to be low.
Although the Koyunlu-1 well is up-dip from the West Raman field, structural integrity
is the largest risk due to the wider than optimum seismic grid. Licence conditions
require a well to be drilled in November so it is not possible to acquire further seismic
before the due drilling date. Subject to results from the Koyunlu-1 well, it is intended
to fill in the seismic grid prior to drilling the second farmin well.
The oil recovered from the Raman fields is relatively heavy (13-18 API gravity) and
any oil at Koyunlu -1 is likely to be similar. This oil is readily saleable at a small
discount to standard Middle Eastern Crude prices.
The area has good oil and gas infrastructure with the regional oil refining and
handling centre at Batman, 24 kilometres north of the well location.
Farm-in Terms to Acquire 20% interest & Option to acquire a further 25%
interest
Eureka will earn a 20% interest in the two adjoining Exploration Licences from
Turkish company, ARAR Petrol Gaz AUPAS (registered license holder and operator
of the Licences) by funding 20% of past exploration costs and 30% of the Koyunlu-1
well dry-hole cost on a turnkey basis. Eureka’s total cost including drilling of the
Koyunlu Well – 1 will be approximately A$800,000.
Eureka’s share of the second farm-in well costs are capped at the lesser of
US$525,000 or 30% of dry-hole cost.
Following drilling of the Koyunlu-1 well, additional seismic may be required to
determine the exact drilling location for the second farm-in well. Eureka’s share of
seismic costs will be 20%.
Eureka may withdraw from the farm-in agreement and licenses at any time following
the drilling of the Koyunlu-1 well.
Eureka has an option to increase its interest in the Licences to 45% by purchasing an
additional 25% of the Licences for US$ 2,000,000. Eureka will pay an option fee of
US$191,000 and the option will expire 3 weeks after the second well is drilled. The
option would only be exercised in the event of the discovery of commercial oil in
either or both wells and gives Eureka significant leverage to drilling success.
Mr Graham Dowland, Chairman of Eureka said “the Board is very pleased that
Eureka has acquired the opportunity to participate in the drilling of such a significant
oil play at a relatively low entry cost and protected from well cost over-runs by the
turnkey contract. The project fits Eureka’s strategy of targeting significant sized
international projects heavily leveraged to success.


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## DAVIDB75 (31 October 2006)

i thought this deal (turkey) sounded extremely good , spend a million or so and have a say 20-30% chance to make 100 million, in two to three weeks, with a further option once the second well is drilled.

the sp does not indicate the market thinks so. is it too good a deal?
am i missing something?

i'd be grateful for further information/experience of this type of deal.

thanks,


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## Broadside (9 November 2006)

starting to come together, secondaries in Sugarloaf look very promising, now we drill the top of Hosston primary target and encounter gas immediately...and Turkey spudded in next week or so (?) based on initial announcement of this project.


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## Broadside (10 November 2006)

and more gas...2 days out of 2...


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## conman (11 November 2006)

Make that 3 out of three and counting (according to couch)  

Yeeeha


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## Broadside (13 November 2006)

conman said:
			
		

> Make that 3 out of three and counting (according to couch)
> 
> Yeeeha




no news today to confirm Couch rumour...maybe we'll know tomorrow and failing that, the weekly update on Wednesday.

Anyway Turkey is spudded and price currently 67c.

=====================================================================================

ASX RELEASE 13 November 2006
Dear Sir/Madam
KOYUNLU - 1 WELL COMMENCES DRILLING
Eureka advises that the Koyunlu-1 exploration well, located onshore South Eastern Turkey commenced drilling on 11 November 2006 and at midnight Turkey time on 12 November, was drilling ahead at 439 feet (133.8 metres).
The well is located in the major oil producing region of Turkey approximately 17 kilometres south of the West Raman oil field (original oil in place 1.5 billion barrels)
Eureka recently acquired farm-in rights to earn a 20% interest and an option to increase its interest to 45% in two exploration Licenses, together known as the Bismil Prospect.
Koyunlu-1, with a proposed total depth of 1,380 metres, will test the eastern portion of a structure with similarities to the Raman field structures. The target reservoirs are Cretaceous age carbonates of the Mardin Group (1,280 metres), the same reservoirs which host oil in the Raman fields and numerous other oil fields in the region. The Operator expects to reach target depth within 2 weeks.
The structure has the potential to host recoverable reserves of 31 million barrels (P50) or 204 million barrels (P90), if oil is present and commercially extractable.
ASX releases will be made routinely every Tuesday unless there are material matters which require an earlier release.
Background to the Bismil Prospect
The two Licences cover an area of approximately 500 square kilometres. The first of two farm-in wells, Koyunlu-1, is located about 17 kilometres south of the West Raman oil field (original oil in place 1.5 billion barrels) and about 40 kilometres south of the Selmo oil field (original oil in place 500 million barrels).
The Koyunlu-1 target is located in a regionally well established oil system and good oil shows were obtained in the nearest well, which was out of closure some 8 kilometres to the north east. Oil generation, migration and reservoir risk is considered to be low. Although the Koyunlu-1 well is up-dip from the West Raman field, structural integrity is the largest risk due to the wider than optimum seismic grid.
The oil recovered from the Raman fields is relatively heavy (13-18 API gravity) and any oil at Koyunlu-1 is likely to be similar. This oil is readily saleable at a small discount to standard Middle Eastern Crude prices.
The area has good oil and gas infrastructure with the regional oil refining and handling centre at Batman, 24 kilometres north of the well location.
Further details of the Bismil Prospect and associated farm-in terms are summarised on our website at www.eurekaenergy.com.au.


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## Broadside (30 November 2006)

no one seems interested but I'll post anyway   

undiluted market cap approx $23m, up 6c to 58c today, probably in anticipation of drilling in Turkey recommencing following oil show.  Note the oil show is 9 metres and then they stopped...it _may_ be more than 9m.

Sugarloaf wireline logging in progress which also has obvious upside for EKA if gas shows in secondary and primary prove economic.

==========================================================

ASX RELEASE
27 November 2006
Eureka Energy Limited (ASX:EKA, “Eureka” or “Company”)
OIL SHOW IN KOYUNLU-1 WELL
Eureka advises that at 0400 hours Eastern European Time on 27th of November 2006 the Koyunlu-1 well, located onshore South Eastern Turkey, was tripping out of the well with drill pipe, after drilling to a depth of 1,220 metres.
Oil shows were obtained in fractured carbonates of the target Garzan Formation, over 9 metres to the present depth of 1,220 metres. The shows were represented by bright yellow streaming cut fluorescence in drill cuttings.
While the shows are encouraging their commercial significance will not be known until the well has reached total depth, wire-line logs are interpreted and flow testing, if warranted, has been carried out.
Drilling has halted so that casing can be run and cemented just above the show zone. This casing configuration will allow the remaining un-drilled portion of the target Garzan and the underlying Mardin Formations to be drilled with a drilling fluid designed to minimize formation damage.
Drilling operations are expected to resume on or around the 1st of December.
Proposed total depth is 1,380


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## conman (30 November 2006)

Well the market never fails to suprise me.

Just when the centinment seems to be that sugar loaf is a duster and two days AFTER the annon wiht regards to Turkey the price jumps. 

Im out now but expecting 10000 shares from the SSP. 

Hope fully these will be worth a fortune by late DEC, ill be following the stock closely till then.

Just a question...I sent the check for the SPP about 3wks ago should I have recieved any confirmation from EKA about them receiving this? Has anyone else done this?

Good luck to all still holding, if the price dips I could  be back in.

Conman


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## Broadside (30 November 2006)

conman I sent my cheque for SPP a couple of weeks ago, not received confirmation of shares but the cheque was presented.  

Turkey looks very promising thus far especially if the oil show continues, then they can exercise option on second drill.  Very happy to be holding, it is still very low market cap.

I know some quarters of the market have dismissed Sugarloaf, I certainly haven't: they have gas shows in upper primary and Austin Chalks secondary and now they are running wire line logs, so not able to understand the doom and gloom. 

Anyway we will know soon enough.


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## HOMER J (1 December 2006)

Same Broadside, im still quietly confident on sugarloaf, especially the secondaries, and see turkey as a potentially big bonus. hoping for a trading halt on monday re turkey, and we'll hopefully see wireline results from sugarloaf soon too....


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## Broadside (4 December 2006)

double whammy good news today   

ASX RELEASE
4 December 2006
Eureka Energy Limited (ASX:EKA, “Eureka” or “Company”)
KOYUNLU-1 WELL REPORT
Eureka advises that at midnight Eastern European Time on 3 December 2006 the Koyunlu-1 well, located onshore South Eastern Turkey, had reached a depth of 1,252 metres.
Since our last report of the 27 November, casing was run and cemented at 1,215 metres and 32 metres were drilled to present depth of 1,252 metres.
Oil shows continued over the 32 metres in fractured carbonates of the target Garzan Formation, to the present depth of 1,252 metres. The shows were represented by bright yellow streaming cut fluorescence in drill cuttings and small quantities of crude oil were recovered during drilling as films floating on drilling fluid in the drilling fluid tanks. The shows were accompanied by total gas of about 7% over the interval 1,223 metres to 1,252 metres.
While the shows are encouraging their commercial significance will not be known until wire-line logs are run and interpreted and production testing, if warranted, has been carried out.
The well is presently waiting on delivery of well tubulars and operations are not expected to resume until 10th December.
Proposed total depth is 1,380 metres (4,530 feet).


=========================================================

4 December 2006
Company Announcements Platform
Australian Stock Exchange
Level 4
20 Bridge Street
SYDNEY NSW 2000
By e-Lodgement
Dear Sir/Madam
SUGARLOAF-1, PRIMARY TARGET- WIRE-LINE LOG INTERPRETATION
Aurora Oil & Gas Limited advises that wire-line logs were successfully run over the open hole section of the Sugarloaf-1 well between 16,998 feet (5,182 metres) and total depth of 20,896 feet (6,371 metres).
Interpretation of wire-line logs over the primary target indicates that an aggregate of 90 feet (27.4 metres) of potential reservoir are gas saturated and may be capable of commercial production after fracture stimulation.
Based on the log interpretation and the gas indications obtained while drilling, the well participants have elected to run and cement a production liner, fracture stimulate and test the zones of potential interest. The total cost of these operations is estimated to be US$2 million.
By 6am Texas time on 3 December 2006, installation and cementing of the production liner to total depth had been completed and the well was being prepared for temporary suspension so that the deep drilling rig can be released.
Preparation of the well for fracture stimulation and flow testing will be carried out with a smaller work-over rig. An update on the timing of the fracture stimulation and flow testing operations will be provided when the equipment has been contracted.
After the primary target has been tested the joint venture will make a decision on production testing the shallower carbonate reservoirs previously identified as potentially productive.
Participants in the Sugarloaf-1 well are:
Aurora Oil & Gas Limited 1
20.0%
Texas Crude Energy Inc (Operator) et al 2
41.5%
Eureka Energy Ltd
12.5%
Adelphi Energy Ltd
20.0%
Empyrean Energy plc
6.0%


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## DAVIDB75 (4 December 2006)

So that's 41m of oil shows (+ decent gas units) from Turkey and by the
 sound of it the shows have'nt finished yet. Perhaps they are even preparing to drill beyond their stated TD. (hence the requirement for more pipe)

 In addition Sugarloaf partners must be quite confident in their 27M of likely
productive gas shows in Sligo to spend $2million for that deep section alone.

Plus the reputedly/rumoured highly productive Austin - it all adds up to strong production coming for EKA I suspect.  

What would a reasonable risked value market cap be now I am wondering? (while considering whether more shares are required)


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## Broadside (4 December 2006)

DAVIDB75 said:
			
		

> So that's 41m of oil shows (+ decent gas units) from Turkey and by the
> sound of it the shows have'nt finished yet. Perhaps they are even preparing to drill beyond their stated TD. (hence the requirement for more pipe)
> 
> In addition Sugarloaf partners must be quite confident in their 27M of likely
> ...




I really don't know until we know flow rates, suffice to say I am bemused the market has virtually ignored this great news.  Sooner or later the value will be recognised, until then I am happy to wait.


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## JBMMMMMMMMMM (8 December 2006)

looking very undervalued with there fingers in two massive pies of  value. 

-500,000,000 in Turkey - at least 100mill in sugarloaf -600m  of EKA value-

 current market cap -23m


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## djones (8 December 2006)

JBMMMMMMMMMM said:
			
		

> looking very undervalued with there fingers in two massive pies of  value.
> 
> -500,000,000 in Turkey - at least 100mill in sugarloaf -600m  of EKA value-
> 
> current market cap -23m




500mil in turkey??


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## JBMMMMMMMMMM (10 December 2006)

Yeah i know it sounds unbeliveable  but do the research  

-----Off HC-------------
This well is 90m updip (vertical height) of the giant West Raman (original oil in place 1.5 billion barrels) field only 17km to the north which hit oil at 1300m and 150m updip of the nearby other giant Raman field...probably unlikely but potential is a 200m oil trap which would be the second biggest field in Turkey if similar to nearby fields.



By my calculations, 41m of oil shows in Turkey and still in hydrocarbons.

Take p50 case of 30mmbbo, valuations look interesting.

30million x sayA$40 a barrel (discounted) x 45% if option exercised = $540 million.

What if more than 30m barrels?? upside 200m barrels


-I know that Sugarloaf alone will rate EKA alot higher 2+

-EKA X 10 = marketcap 200m on the low side  

JBMMMMMMMMM-holding 30k of EKAO


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## sandybeachs (10 December 2006)

JBMMMMMMMMMM said:
			
		

> Yeah i know it sounds unbeliveable  but do the research
> 
> -----Off HC-------------
> This well is 90m updip (vertical height) of the giant West Raman (original oil in place 1.5 billion barrels) field only 17km to the north which hit oil at 1300m and 150m updip of the nearby other giant Raman field...probably unlikely but potential is a 200m oil trap which would be the second biggest field in Turkey if similar to nearby fields.
> ...




hi guys

if you want to understand more about Bismil Prospect in Turkey, worth reading reports/presentations by INCREMENTAL PETROLEUM LIMITED [IPM]

(IPM) have Selmo Oilfield about a stones throw away from Bismil Prospect which i also expect Bismil will have the same quality oil (heavy).

from memory Selmo has an average of 71bopd per well...(gross production 1,500bopd, i think it's from about 8 producing wells)

if successful what will Bismil flow at..????

no idea...

someone on h/c asked what Bismil might be worth per share, IMO more likely priced on BOPD rather than OIP or RECOVERABLE OIL..why..

because IPM is very very grossly undervalued, IMO because of low flow rates..

comments welcomed..

regards


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## sandybeachs (10 December 2006)

sandybeachs said:
			
		

> hi guys
> 
> if you want to understand more about Bismil Prospect in Turkey, worth reading reports/presentations by INCREMENTAL PETROLEUM LIMITED [IPM]
> 
> ...




just a follow up on the above (IPM) Selmo Oilfiled "Certified" P2 "12mmbls"

IPM's market cap approx $90mm, so this values Selmo at approx $7.50bbl

so as you can see because of the low quality oil & flow rates it's effecting IPM's share price. had the oil been better quality & higher flow rates. no doubt IPM's share price would be much higher.

regards


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## Broadside (10 December 2006)

sandybeachs said:
			
		

> just a follow up on the above (IPM) Selmo Oilfiled "Certified" P2 "12mmbls"
> 
> IPM's market cap approx $90mm, so this values Selmo at approx $7.50bbl
> 
> ...




sandy as you have rightly pointed out on this and ADI thread, flow rates are the key...nevertheless EKA looks to have enormous potential and looks undervalued to me given their discoveries thus far, even if flow rates are on the low side


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## sandybeachs (10 December 2006)

Broadside said:
			
		

> sandy as you have rightly pointed out on this and ADI thread, flow rates are the key...nevertheless EKA looks to have enormous potential and looks undervalued to me given their discoveries thus far, even if flow rates are on the low side




hi broadside

overall EKA is looking good..(excellent actually).

i'm sure if people sit on their shares this time next year we should see a share price way higher than it is at present.

as usual DYOR

regards


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## Broadside (12 December 2006)

hi homer, sandy and other oilers, what is your take on this announcement? doesn't mean a whole lot to me to be honest

KOYUNLU-1 WELL REPORT 12 DECEMBER 2006
Since our last report on the 4 December 2006 tubulars and other equipment arrived on site and swabbing operations commenced to test the 37 metre interval of fractured Garzan Formation carbonates between 1,215 metres and 1,252 metres. As reported previously, continuous oil shows were obtained during the drilling of this section, together with elevated total gas between 1,223 metres and 1,252 metres.
The Operator reported that at midnight Eastern European Time on 11 December 2006, the well-head and associated equipment was being re-configured in preparation for resumption of swabbing operations.
Test Procedure
In this region it has been found that the most effective procedure for testing fractured carbonate formations is to swab drilling fluid from the well to attempt to induce the formation to flow any oil which may be present. Swabbing operations generally continue for several days.
If swabbing shows that oil is present, even in small quantities, and no formation water is recovered, the next stage is to acidise the formation to clean out debris which may be inhibiting oil flow into the well bore. There are usually multiple “acid jobs”, each followed by swabbing to attempt to induce flow from the reservoir into the well bore.
If swabbing and acidisation results in a commercial oil flow, a down-hole pump is installed and the well is placed on extended test production to monitor reservoir performance.
To report time on the 11 December, swabbing has recovered drilling fluid with minor oil cut and about one barrel of black crude oil. No formation water appears to have been recovered. Swabbing is planned to resume within the next 24 hours followed by an acidisation program.


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## Broadside (18 December 2006)

ASX RELEASE
18 December 2006
Eureka Energy Limited (ASX:EKA, “Eureka” or “Company”)
KOYUNLU-1 WELL- LOGS INDICATE OIL PAY
Operations
The Operator reported that at midnight Eastern European Time on 17 December 2006, the well was waiting on cement to set after a remedial cement job to seal the base of the 7 inch casing prior to flow testing.
Since our last report on the 11 December 2006, swabbing operations to test the 41 metre interval of fractured Garzan Formation carbonates between 1,211 metres (depth adjusted after wire-line logging) and 1,252 metres (total depth) were terminated when water from an overlying formation was found to be entering the well-bore from behind the 7 Inch casing, thereby invalidating any test.
While preparations were made to re-cement the 7 Inch casing, wire-line logs were run over the 41 metre Garzan Formation interval which had oil and gas shows during drilling.
Interpretation of the logs by independent experts, indicated the full 41 metre fractured limestone interval was oil bearing, with net oil pay of 24 metres. There is no oil-water contact in the section logged. Reservoir characteristics, including porosity, are comparable to producing fields in the region.
After wire-line logging, remedial re-cementing of the 7 inch casing was carried out and at midnight the crew was waiting on cement to set. If pressure tests show that the remedial cementing is successful, the well will be cleaned out and the reservoir section flow tested.
The results of flow testing will be reported as they become available.
Background
Eureka has acquired farm-in rights to earn a 20% interest together with an option to increase its interest to 45%, in two adjoining exploration licences covering about 500 square kilometres in South East Turkey. This project is known as the Bismil Project. The Koyunlu-1 well is the first of two farm-in wells to be drilled in the licences.


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## Agentm (18 December 2006)

well done broadside,, 

the report looks great and the sp is running..  great reward i think.. 

has there been calculations on reserves and value to sp on the well??


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## Broadside (18 December 2006)

Agentm said:
			
		

> well done broadside,,
> 
> the report looks great and the sp is running..  great reward i think..
> 
> has there been calculations on reserves and value to sp on the well??




thank you

not that I can find AgentM, I really have no idea the implications for the share price, but Turkey is delivering all I could hope for it thus far...as you know I was in EKAO for exposure to Sugarloaf so this is a bonus...obviously they need to do flow testing but they also have another 100m drilling to TD so that might be a bit of fun too...would be good to see a great boost to the share price so that if they need to raise $ for Sugarloaf development they won't need to issue too many shares....as an option holder I want to see top dollar for any placement.

ADI looking strong too, I think 2007 will be a great year for all of us!


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## constable (20 December 2006)

4 days straight of  higher lows ! tommorow will be the test as the low today was 65 cents ( 5 cents higher than yesterday). Certainly been trending upwards albeit on low volumes. Would like to see it take a breather probably too late for a dbl bottom but it would be good to see some consolidation. Anyway just thinking out loud ! 
have been holding for the last ten days.


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## Jus (17 January 2007)

SP is generously undervalued currently. Looking at their Turkey and Sugarloaf prospects (gas shown in both wells) I say success is pretty much on their side, just a matter of time (trouble free/bad weather). I took a punt bought a small parcel today. Hold for upside.


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## Broadside (17 January 2007)

Hi Jus, Turkey looks like it could disappoint and the market has reacted savagely, but even on Sugarloaf prospect alone I think it has fantastic upside.  Should know in the next month.


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## Jus (18 January 2007)

Broadside said:
			
		

> Hi Jus, Turkey looks like it could disappoint and the market has reacted savagely, but even on Sugarloaf prospect alone I think it has fantastic upside.  Should know in the next month.




Hi Broadside, i agree on the Sugarloaf upside, very potential. As for Turkey, i think the market has over-reacted over delays, bad weather and some technical terms. My concern is flow/pressure testing which they're about to carry out if weather permits.

My logic is... the Turkish company/operator knows what they are doing(home ground).. if the well doesn't stand a chance (for commercial productions) why would they continue wasting time/cost on this well. Instead they could just abandon this well and move to the 2nd the well   perhaps they share the same thinking: High Risks, High Returns + patience.


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## Jus (21 January 2007)

Another week full of hope for EKA holders. Will she holds around 0.38-0.40 mark?? Fingers crossed.


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## JBMMMMMMMMMM (22 January 2007)

IMHO it should hold 36c till some news is out hopefully this week getting sick of the wait


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## Jus (23 January 2007)

Thank god! Ann. out. Turkey resumed.


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## stiger (23 January 2007)

Jus said:
			
		

> Thank god! Ann. out. Turkey resumed.



I have a feeling this is just the beginning of a sp returning to 70-80c Sl is getting closer.cheers


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## Jus (25 January 2007)

stiger said:
			
		

> I have a feeling this is just the beginning of a sp returning to 70-80c Sl is getting closer.cheers




Best of luck to all the holders including myself


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## constable (1 February 2007)

Jus said:
			
		

> Best of luck to all the holders including myself



Beginning of the end maybe as the koyunlu well is knackered!(re ann.)
who is the other guy trying to buy at .23????you leap frog me one more time i'll be most upset!


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## Broadside (1 February 2007)

constable said:
			
		

> Beginning of the end maybe as the koyunlu well is knackered!(re ann.)
> who is the other guy trying to buy at .23????you leap frog me one more time i'll be most upset!




disappointing as I was hoping this would be the extra icing on the Sugarloaf cake...nevertheless Sugarloaf remains the main game for me and is why I hold EKA, EKAO and ADI.


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## wallave (1 February 2007)

just a good buying opportunity I think.  I bought a few extra ekao and eka. Once the Sugerloaf results start coming in then this should take off.  This sell off because of Turkey seems a bit too much to me, even though I'm happy to buy more at these cheaper levels.  The Turkey well would have only been a small percentage of the companies future profits compared to what we have around the corner at Sugarloaf.
So just a very minor hiccup in my opinion, the big rewards are coming.

Cheers


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## constable (1 February 2007)

wallave said:
			
		

> just a good buying opportunity I think.  I bought a few extra ekao and eka. Once the Sugerloaf results start coming in then this should take off.  This sell off because of Turkey seems a bit too much to me, even though I'm happy to buy more at these cheaper levels.  The Turkey well would have only been a small percentage of the companies future profits compared to what we have around the corner at Sugarloaf.
> So just a very minor hiccup in my opinion, the big rewards are coming.
> 
> Cheers



it seems to have found support at 34.5c dam!! I was hoping it would tank a bit harder than that.


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## constable (7 February 2007)

Agentm said:
			
		

> *ramp of the year nominee removed*




That's a big call agentm, $3 bucks! I have rebought small parcel @ 32c but what im interested in is why you seriously think $3 . Eka has done nothing but tank lately and yes it looks like it could have been oversold which is why ive bought back in but i'd love to know the rationale for your figure.
thankyou c


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## JBMMMMMMMMMM (8 February 2007)

pretty easy mate 
 Each BCF is the US is worth roughy 5mill in value 
 Sugarloaf primary Target 800Bcf secondary 100bcf  - Eka has 12.5% interest

Even if it half this Size say 50bcf  =250mill value to EKA (Mrktcap-27mill)
this doesn't include any oil or the fact it could be alot higher than 800bcf 

 A 10 bagger is very likley on major success 3.50


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## Broadside (8 February 2007)

that's why I have gone very long the options for the extra leverage, 10 bagger in head stock = 16 bagger in oppies at the moment (the options are trading at a premium to intrinsic value, convert at 20c in 2008).

of course that is providing we get major success...no guarantees, do your own research yadda yadda, nevertheless for me it is a great risk/reward scenario.


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## constable (8 February 2007)

JBMMMMMMMMMM said:
			
		

> pretty easy mate
> Each BCF is the US is worth roughy 5mill in value
> Sugarloaf primary Target 800Bcf secondary 100bcf  - Eka has 12.5% interest
> 
> ...



And while that may all be true, just what is the probability of a "likely success" I hope its not as likely as getting oil out of the koyunlu well!


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## JBMMMMMMMMMM (9 February 2007)

Just checkout the ADI forum - I myself have been following ADI EKA Sugarloaf for couple yrs now and from what I've read over that time makes me very confident


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## constable (13 February 2007)

Agentm said:
			
		

> *ramp of the year nominee removed*




In two weeks time hey?   
It seems that they are a little further away from that magical $3 mark.......now currently trading at 28.5c.
I would still like to know your calculations on your figure agentm?


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## resourceboom (19 February 2007)

JBMMMMMMMMMMMMMMMMMMMM,
I don't think it will reach $3.5, but could easily reach somewhere in the high $1s,  also don't forget that there are plenty of options to dilute the stock, and EKA's final % is lower then the 12.5

I hold EKAO, which have little left in the sell side!!


----------



## ricey (20 February 2007)

guys,

if the primary flows at 800bcf+ and you throw in what will be a significant upgrade from the secondary targets over time, then $3+ is easily achieveable!

I think a few could be very surprised here!

regards


----------



## constable (21 February 2007)

ricey said:
			
		

> guys,
> 
> if the primary flows at 800bcf+ and you throw in what will be a significant upgrade from the secondary targets over time, then $3+ is easily achieveable!
> 
> ...



Well ive bought more today on the sell off which i thought was a textbook over reaction. Up to my nuts in eka at the minute! 
However the accumulation i saw today tells me i wasnt the only one. In the afternoon trade at 31c the shares were consistently taken out as soon as they popped up. Looking for a bounce tomorrow and a close around 34-36 as the sellers i think were easily soaked up in todays trade and will dry up with only profitakers holding the price back at tomorrows close.


----------



## constable (21 February 2007)

constable said:
			
		

> Well ive bought more today on the sell off which i thought was a textbook over reaction. Up to my nuts in eka at the minute!
> However the accumulation i saw today tells me i wasnt the only one. In the afternoon trade at 31c the shares were consistently taken out as soon as they popped up. Looking for a bounce tomorrow and a close around 34-36 as the sellers i think were easily soaked up in todays trade and will dry up with only profitakers holding the price back at tomorrows close.



I'd better throw in this graph to back it up! The huge volume shows how the sp although down was pretty much halted in its tracks at the 31c and closed the day @ 32. Although graph shows the downward trend since the kyunlu setback I think the price movement today was unnecessary and should be corrected. It is worth noting that sp hasnt closed below 31.5c since the 18/10/06 and with the sl prospects and upper testing due in March, I can only see a build up from this point on.


----------



## Sean K (22 February 2007)

Forgive me for butting in here, but looking through the posts I find it very difficult to see how $1.00 and even $3.50 valuations of this are being plucked. 

From the chart, all I see is downward momentum, with more pain in sight. (unless you're shorting it perhaps)

Can someone please explain this to someone who doesn't understand gas. Cheers.


----------



## Broadside (22 February 2007)

Hi constable, good luck with your purchases yesterday, very ballsy.  I have a huge amount of options but EKA was absolutely caned yesterday morning, seems relatively friendless compared to the other JV partners.  Nevertheless with some good news things can turn around very quickly and buying on weakness may seem like an inspired move.  I think the market over reacted yesterday and let's hope the upper Hosston testing delivers for holders.  Of course we still have the Austin Chalks which is the one I am really banking on.


----------



## constable (22 February 2007)

Ouch!! Still a few more to shake out!


----------



## resourceboom (22 February 2007)

Hi Kennas,
The valuations here are based purely on fundamentals and after all fraccing and production flow testing of primaries and secondaries. (all not yet started)

The price could easily hit $1 on secondary success which is highly likely, and the partners have said it could easily be better then their upper estimates, including oil.

For the $3+ valuations you would have to get good success in the primaries or 800+ BCF which is still definitely possible.

My valuations are also based on broker valuations of ADI. ADI have 2x the exposure to SL but EKA is currently on a very small mkt cap.

Gas prices are much higher in the US and on success it should be brought online quite quickly as lots of nearby infrastructure.

Hope this helps!   



			
				kennas said:
			
		

> Forgive me for butting in here, but looking through the posts I find it very difficult to see how $1.00 and even $3.50 valuations of this are being plucked.
> 
> From the chart, all I see is downward momentum, with more pain in sight. (unless you're shorting it perhaps)


----------



## Broadside (22 February 2007)

kennas said:
			
		

> Forgive me for butting in here, but looking through the posts I find it very difficult to see how $1.00 and even $3.50 valuations of this are being plucked.
> 
> From the chart, all I see is downward momentum, with more pain in sight. (unless you're shorting it perhaps)
> 
> Can someone please explain this to someone who doesn't understand gas. Cheers.




Kennas if you want information on the fundamentals of Sugarloaf (and potential rewards) check out the ADI thread on this site there is a wealth of information.


----------



## stereo21 (8 March 2007)

What is everyone's view on EKA.  Still a big discount to ADI (excluding NT) and looking at the depth, no buyers around...


----------



## Agentm (8 March 2007)

you made me look.. 3 buyers..

somehow i dont think the shareholders or directors are concerned..


----------



## Broadside (8 March 2007)

Agentm said:
			
		

> you made me look.. 3 buyers..
> 
> somehow i dont think the shareholders or directors are concerned..




it is thinly traded, if there is good news it will rocket, if there is bad news there will be no pretty way out for those with decent positions


----------



## resourceboom (13 March 2007)

Bad news yesterday, the massive gains hoped for from primary success will not eventuate, but hopefully secondaries come in with good flows. The heads are probably a better bet then the oppies. good luck all.


----------



## JBMMMMMMMMMM (14 March 2007)

yeah buying EKAO 12c would seem crazy comphared to the head shares price of 22c over the last 6months more often that not ekao would be 20c less that the head shares(less the 20c ex. march 08  )
 So really if it was trading the same as in the past 2c-4c should be the current ekao sp


----------



## constable (12 April 2007)

itsy bitsy run on here. Good golly that makes me happy just when i thought it was dead!
Should add the terrible trio are all looking a little sprite!


----------



## jtb (12 April 2007)

constable said:


> itsy bitsy run on here. Good golly that makes me happy just when i thought it was dead!
> Should add the terrible trio are all looking a little sprite!




Just walked in the door and noticed that also.
Thought to myself 'constable will be glad'

Best of luck on SL


----------



## Agentm (12 April 2007)

the stock may have been dead for a while, but what a way to wake up..

glad to hear your feelin a bit better constable.. i feel better days still to come..  as you know i dont hold any eka, but i love it when others do well no matter what the stock is!!


----------



## constable (16 April 2007)

interesting to finally see some buy depth here.


----------



## sam76 (16 April 2007)

constable said:


> interesting to finally see some buy depth here.




yeah I wish the oppies would start moving as well


----------



## Agentm (16 April 2007)

AUT and EKA are getting good support, its been progressing for a few days now, i assume its the early birds arriving before the spring.

I would buy some ekao's myself but am locked into another stock this month, plenty of time still.

has eka got anything else on the go or planned in the future?


----------



## Royce (16 April 2007)

sam76 said:


> yeah I wish the oppies would start moving as well




Sam..options up 25% today, you can't be too unhappy about that.

Royce


----------



## sam76 (16 April 2007)

Royce said:


> Sam..options up 25% today, you can't be too unhappy about that.
> 
> Royce




ROFL maybe I should complain more!

I wish TRG, VSG, SBM, GDM AUT, EKAO, NAB, TCL, MSC and MTS would lift their game!


----------



## constable (18 April 2007)

Mother of god! What's going on here 30c ....I dont believe it!
On 14 trades of which I can see 5 were crossed (not sure how to interpret this)....no ann.


----------



## rub92me (18 April 2007)

Looks like someone is buying "on market" rather than on price, which is a dangerous thing to do with such a thinly traded stock. Good for the price though :


----------



## constable (18 April 2007)

rub92me said:


> Looks like someone is buying "on market" rather than on price, which is a dangerous thing to do with such a thinly traded stock. Good for the price though :




Yep agreed, the price movement doesnt really look credible with no buy depth, but hey i dont mind if i get this wrong! 
Options havent traded either.


----------



## Agentm (18 April 2007)

i was looking at it earlier, and the volumes are increasing constantly.

great stuff.. eka and aut are moving well, adi is frozen in its zone..

not long to go now on sl, maybe the market is waking up?


----------



## ShiroKage (20 April 2007)

A lot of hype taken out of its sails today. Down 11.76% and not even an announcement to cause it.


----------



## ShiroKage (23 April 2007)

Great, and now theyve regained it all back today. That's just frustrating...


----------



## resourceboom (24 April 2007)

Amazing that there is no interest in EKA whatsoever after todays announcement, -10% whilst ADI even and AUT -3%.  Yet the announcement was incredibly positive for EKA in particular.

Wow.......
EKA previously had less acreage than the other JVP's below Sligo, yet now has exactly the same acreage as all other partners...... This is a massive bonus to EKA, with twice as much acreage on the chalks as previously held, and the mkt cap of the company is still AU$10M.  

Sure this is all or nothing for EKA, but for those who can wait a couple of months........


----------



## wallave (25 April 2007)

resourceboom said:


> Amazing that there is no interest in EKA whatsoever after todays announcement, -10% whilst ADI even and AUT -3%.  Yet the announcement was incredibly positive for EKA in particular.
> 
> Wow.......
> EKA previously had less acreage than the other JVP's below Sligo, yet now has exactly the same acreage as all other partners...... This is a massive bonus to EKA, with twice as much acreage on the chalks as previously held, and the mkt cap of the company is still AU$10M.
> ...




Is this correct Resourceboom?  The announcement doesn't go into the cost for acquiring the extra acreage or any detail as to the split in the JV.  I certainly hope that you are right in that EKS now has access to the same as the other JV plus the extra acquired land.  I hold quite a few of eka's and would have liked a bit more detail or clarity in yesterdays announcement.  
But as you say this could be a massive upside to EKA, the confidence that they have got to get extra land without even flowtesting the secondaries yet oozes in confidence.  This is a sleeping giant here I think.
Certainly makes the pain of the last month or two seem not so bad when we should see a few bag rise as the flow testing gets nearer in 2-3 months.


----------



## resourceboom (26 April 2007)

Hi Wallave,

Yeah, I was a bit confused by the announcement too, so I called the company for clarification (something I had been meaning to do anyway).  I said the announcement seemed to contradict the website, but they said the website needs to be updated.

Apparently they held approx 10,000 acres before but now hold exactly the same as the other JVPS (19,500) over ALL depths as released in the ann.  The sooner they update the website the better!!

And I still don't think the announcement is clear enough, maybe if others spoke to the company asking for a follow-up announcement with more detail it would be beneficial?


----------



## wallave (26 April 2007)

Great work Resourceboom.

That's fantistic for EKA.  That was one of the reservations I had initially with buying EKA that they didn't have all the coverage that the other partners had. But I couldn't resist the low market cap and potential spike to the share price.  Having all rights makes this an absolute steal if the confidence that the jv's have on the secondaries is true.

I will give the company a call as you suggest.  An announcement by EKA itself advising that they have increased their share and costing would have been appropriate I think.
The waiting game will continue for a while yet until the flow testing gets nearer I think anyway.

Thanks


----------



## resourceboom (30 April 2007)

From yogis post yesterday:
EKA ... positive news on Wednesday AND Thursday ... ???

good if it comes to fruition!!


----------



## rub92me (3 May 2007)

I bought some yesterday with the view that we may get some rumour about the lower sands fueling this over the next 2 months. If it dives further it may be hard to get out so I only bought a small parcel; I'm not that brave  So still a reasonable risk/reward.


----------



## constable (4 May 2007)

rub92me said:


> I bought some yesterday with the view that we may get some rumour about the lower sands fueling this over the next 2 months. If it dives further it may be hard to get out so I only bought a small parcel; I'm not that brave  So still a reasonable risk/reward.




Well plenty of buy depth there now rubadubdub! In fact i cant recall a time since this stock dived under 30c that there has any been significant depth.
Makes sense at these prices with a small market cap and the significant exposure it has to sl.


----------



## wallave (4 May 2007)

Hi Resourceboom,

I spoke to Eureka, they were very easy to talk to. They obviously couldn't say anything that hasn't been released to the market but did mention that they wouldn't have gone and acquired extra acerage if they didn't have confidence in the results to date. He was also surprised that the market hadn't reacted positively to the release (until today a little bit).  He thought the axtra acerage was an obvious signal.

He did also say that they wouldn't have gone and spent the extra money testing the hosston if they didn't have the confidence that it would have paid of. Although he stated that it was worth the risk with the potential size of the play.

I asked about the financial side of things as to how much the extra acerage costs.  He would not divulge that.
I mentioned that they only have $1.2mil in the bank and would a raising be expected. He couldn't give a definate answer although said that it could be expected that it may happen given the expected costs for flow testing the secondaries and they won't be left in a position where they havn't got the funds to proceed with the other jv's.

I basically took that they would most likely be another cash raising in the next 2 months to top up the coffers.

Overall still very happy to hold and top up some more.


----------



## resourceboom (4 May 2007)

Thanks mate, Yeah it all sounds good.  I was very busy when they called me back, so I only had time for a very quick chat.  The more info you provided is great.

I think you're definitely right in that a cap raising will be required sooner rather then later, which will probably depress the price a bit, but look forward to it as a chance to add to my holdings.  

They still havent updated the website tho


----------



## S_Hug (10 May 2007)

Announcement is out...share's down a couple of cents..

ASX RELEASE9 May 2007 Eureka Energy Limited (ASX:EKA, "Eureka" 
or "Company")Share Placement Eureka is pleased to announce that it has agreed the placement of up 
to 7,875,000 shares at an issue price of $0.20 per share to raise up to 
$1,575,000, before the costs of the issue. Shareholder approval is not required for the placement, which is within 
the 15% limit available to the Company under Listing Rule 7.1. In addition, the Company has agreed subject to shareholder 
approval to issue a further 2,125,000 shares at the same issue price 
to raise $425,000 before issue costs. A notice convening a general 
meeting of shareholders to consider this additional placement will 
be sent to shareholders in the near future. Funds raised from these issues will be applied towards the Sugarloaf 
project and for general working capital. Shares will be issued to 
Institutional and other Sophisticated Investors including clients of 
Stripe Capital - Corporate Authorised Representative of Australian 
Stockbroking & Advisory Services Ltd.At the general meeting of shareholders to be convened, approval 
will be sought for the issuance of a total of 850,000 incentive 
options to directors. The terms of the proposed incentive options 
will include an exercise price of $0.35, expiry in 3 years and with 
50% (425,000) vesting on 30 June 2008. Yours faithfully 
EUREKA ENERGY LIMITED 

Alex Neuling 
DIRECTOR


----------



## Broadside (10 May 2007)

S_Hug said:


> Announcement is out...share's down a couple of cents..
> 
> ASX RELEASE9 May 2007 Eureka Energy Limited (ASX:EKA, "Eureka"
> or "Company")Share Placement Eureka is pleased to announce that it has agreed the placement of up
> ...




working capital for Sugarloaf, I like the sound of that, not so keen on incentive options they already have plenty of incentive


----------



## Agentm (10 May 2007)

dont worry broadside,,

if they were not feathering their own nest then you could say there wasnt anything worth while out there that they are doing to make that decision..

for me the message is clear and loud, for others they have no clue what the significiance of the announcement is..

make the best of it while its at the price it is if you understand the SL prospect. it wont be long before you will look back at todays prices and be staggered as to why you didnt get more..


----------



## Broadside (10 May 2007)

Agentm said:


> dont worry broadside,,
> 
> if they were not feathering their own nest then you could say there wasnt anything worth while out there that they are doing to make that decision..
> 
> ...




Don't tempt me AgentM I am already full to the brim on ADI and EKA I can't let greed get the better of me...mind you I am cashed up after selling some AGS :


----------



## Agentm (10 May 2007)

a few weeks back they had $1.33 mill in the bank.. enough for some short period of time..

Now the JVP's are obviously looking at over $20 Mill  needed for the near term at SL..

I would say some there is some heavy duty planning going on..

I know its completely missed by the market, but the SL play and its present 80 sqaure kilometers of leases which is getting larger and larger, must be getting some major activity on it very very soon.. 

thats is some serious money for an untested 40bcf play!!!  or is it 400bcf+ play???


----------



## Broadside (10 May 2007)

Agentm said:


> a few weeks back they had $1.33 mill in the bank.. enough for some short period of time..
> 
> Now the JVP's are obviously looking at over $20 Mill  needed for the near term at SL..
> 
> ...




From what I read at the forum that shall remain nameless EKA has rights to all depths on the new acreage which is fantastic news given it is the shallow rights that will be where the action is.


----------



## Agentm (10 May 2007)

hey broadside,, now your onto something...

a few comments.. 

1/  eka always had the same rights as all other JVP's for some time..

2/ the shallow targets have certainly been amazingly understated (did anyone bother to research further from my post on adi last week on couch oils new website and to look at the reports and spot something about SL??)

3/  why are the jvp's buying rights to all depths if the sands _*were not productive in this exploration well designed to test all zones of interest*_ (has anyone got the point yet??)

4/ its all there, couch oil isnt hiding their asperations, and eka isnt stuffing around, they want to spend the cash there.. maybe the penny will drop soon


----------



## Broadside (10 May 2007)

Agentm said:


> hey broadside,, now your onto something...
> 
> a few comments..
> 
> ...




(1) my understanding was that previously EKA had rights to all depths on the current drill, but shallow rights over a minority of the overall lease area, now it seems they have rights to all depths over the entire area which erases one of my concerns

(2) I agree the secondaries look great, I will have to check out that Couch website I was away for a couple of weeks and just catching up on things.  Maybe Couch is off his leash again now that they have secured the extra acreage.

(3) by sands you are referring to Hosston?  I think Hosston is seemingly dead but not yet buried with a chance of revival some way down the track, regardless secondaries should reward big time

(4) I hope the penny drops soon  but I am patient


----------



## wallave (10 May 2007)

AgentM...I checked out the Coil Oil new website. I couldn't find any references to SL. Did you manage to?


----------



## chance fate (10 May 2007)

... me neither... there's a home page, a list of wells completed and a list of well being worked...  but no mention of SL anywhere....


----------



## wallave (11 May 2007)

It was on the 1st dec,
Agentm put the comments on the adi thread last night.

Nothing since then though


----------



## surfingman (11 May 2007)

chance fate said:


> ... me neither... there's a home page, a list of wells completed and a list of well being worked...  but no mention of SL anywhere....




I think Agent M is referring to this page, good old google:

http://www.couchoil.com/daily1.asp

I dont have anything else to say but need 100 letters


----------



## Broadside (11 May 2007)

surfingman said:


> I think Agent M is referring to this page, good old google:
> 
> http://www.couchoil.com/daily1.asp
> 
> I dont have anything else to say but need 100 letters




no, there is a more recent one surfing man:

*As exploration manager for Oil2 Holdings, we hit our first major 21,000’ well.

Each year we have drilled a major well. The Hosston well proved up a 2 TCF project covering 26,000 acres.

In 2004 we drilled Lake Boeuf, an 18,000’ well and found marginal reserves.

In 2005 we drill another potential very large reserve well, South Deep Lake at 19,000’ and found marginal reserves.

So we hope Sugar Loaf is our first major home run. Those deep wells are extremely costly though …. With substantial cost overruns.
*


----------



## chance fate (11 May 2007)

...ok... checked it out... thanks...  just putting my skeptic hat on for a moment...  and couldn't help notice how bad couch's written english is...    Hosston we proved up a 2Tcf project  - could he have meant to write prospect...  and as such an interpretation could be that the well has proved the existence of hydrocarbons in the prospect...  ?  having said that i like the sounds of what he wrote in the Dec 1 report...  and didn't realise the 100 wells refered he envisaged for an oil field development instead of gas...  sounds plausible for an acreage that size...  gas would be something different i.e. only a few (2?) wells...  going to absorb this a bit for my own risk/reward reasons... as they seem very strong comments...


----------



## chance fate (11 May 2007)

..no mention of oil in EKA or ADI announcements...therefore i'm going to treat Couch announcements with some measure of caution....


----------



## Agentm (11 May 2007)

if you go to couch oils old site, and look back at all the updates on the sugarloaf well, up until he was told to stop posting, then you will see thay ran exactly as the jvp's all announcements were 100% consistant..

the notorious last post was the one that we all have debated,, if he is so wrong about it, then why?

also on the new site he only mentions 2tcf.. in line with all jvps in terms of gas only at sugarloaf..

we have yet to see any results, and the logs from the well have been posted everywhere.. lot of speculation on the oil part still..

i have not been able to find anything that couch oil stated as not being correct..  he's free to say what he wants


----------



## S_Hug (11 May 2007)

This is fun to watch.... someone just bought 100,000 EKA at 28c (up 12%).  Anyone want to own up...?


----------



## chance fate (11 May 2007)

... wondering what sp to expect pre-well test on SL..  my guess is around the 40cent mark which is where it was when the shallows were drilled...  though now the riskiness seems lower given all the recent announcements...


----------



## ShiroKage (12 May 2007)

Sorry to be a noob but I don't fully understand the announcement 

Is it implying I can buy shares EKA at 20c? Who gets to buy the shares at 20c? Why is it a good thing that they are issuing shares below their trading value?


----------



## rub92me (12 May 2007)

It is a placement, which means they have already found an interested party that will take all those shares for the 20 cent price. They're not mentioning anything for shareholders...


----------



## surfingman (12 May 2007)

ShiroKage said:


> Why is it a good thing that they are issuing shares below their trading value?




Often what happens when a company releases shares they offer discount rates to make the offer more attractive for investors, its a good thing because the funds will be used to develop a field for gas production.


----------



## yogi-in-oz (13 June 2007)

Hi folks,

EKA ... expecting two time cycles to be triggered,
around 18062007, by some positive news ... ??? ..... 

happy days

  paul



=====


----------



## sam76 (18 June 2007)

G'day Yogi,

Looks like your predictions are doing well for EKA.

The heads are up 6.5 cents as I write.

(I just need the oppies to fly)


----------



## Broadside (18 June 2007)

sam76 said:


> G'day Yogi,
> 
> Looks like your predictions are doing well for EKA.
> 
> ...




looks like the options could fly if the ordinaries can hold around low to mid 30s, they were at a premium for quite some time, now back to intrinsic value, the demand for the heads should flow through to the options soon 

yogI don't know how you do it, but well done!


----------



## sam76 (18 June 2007)

Broadside said:


> looks like the options could fly if the ordinaries can hold around low to mid 30s, they were at a premium for quite some time, now back to intrinsic value, the demand for the heads should flow through to the options soon
> 
> yogI don't know how you do it, but well done!




Not a bad finish for the heads today - EKA up 27%, but EKAO down 6.7%

Hopefully that move will happen tomorrow!


----------



## chance fate (18 June 2007)

yogi-in-oz said:


> Hi folks,
> 
> EKA ... expecting two time cycles to be triggered,
> around 18062007, by some positive news ... ??? .....
> ...




hi yogi...  impressed and curious about your prediction method...  what are time cycles?? do you invest/trade according to your predictions?


----------



## rub92me (22 June 2007)

Interesting action again today. Big buyer(s) on the prowl, and the sell side has almost disappeared. Ignoring the couple of hundred shares remaining at 34 cents, there is a 6.5 cent gap between the bid and the ask .


----------



## Broadside (22 June 2007)

rub92me said:


> Interesting action again today. Big buyer(s) on the prowl, and the sell side has almost disappeared. Ignoring the couple of hundred shares remaining at 34 cents, there is a 6.5 cent gap between the bid and the ask .




the liquidity is a double edged sword, on good news they will be extremely hard to get and the price will rocket, on bad news it will be extremely hard to get out.  As expected demand is flowing through to the options now that the shares seem to have reached a new level.

There is a General Meeting today, I wonder if this is having any bearing?


----------



## chance fate (13 July 2007)

Just wondering what the sp forecast pre-testing will be...  i forecast 35-40c based on the price during drilling the shallower levels less say 5c for risk on a one-shot stock...  but given the last announcment i'm feeling much more confident that all the JV's are onto something worthwhile...   so I'm giving it 50-55c pre-test.....reflecting a higher than 50% confidence level plus drilling of SL2....  any thoughts??????


----------



## rub92me (13 July 2007)

Yep chance fate, I guess that's about right. They have definitely set themselves up. If the share price builds up to 60 cents on the rumour and results aren't forthcoming we could see a 50+% drop in one day (like e.g AKK not too long ago). I'm an optimist, so I'll keep holding, lucky that I got in low.


----------



## resourceboom (16 July 2007)

mkt cap is still quite low, assuming SL is as good as people hope for.
$20.7 mil (not fully diluted)


----------



## Captain_Chaza (31 July 2007)

This is just a note to let it be known that I have entered the EKA in our "August Competition"

Salute and Gods' speed to all
And as always, DYOR and Charts


----------



## Broadside (31 July 2007)

argh Cap'n let's hope good ship EKA takes us through fair weather to the shores of black gold and early retirement, and most importantly, August stock tip glory!


----------



## Trader Paul (2 November 2007)

Hi folks,

EKA ... will be alert for some positive news, in November 07 ... 

                02-05112007 ... 2 positive cycles here

                    19112007 ... 2 time cycles and more positive news expected

               26-29112007 ... same price as 05112007 ???

                   04122007 ... significant and negative spotlight on EKA

                   10122007 ... negative news expected

              14-17122007 ... minor and positive cycle

                  28122007 ... positive cycle ... finance-related ???

happy days

  paul



=====


----------



## all-green-plz (19 November 2007)

EKA just broke through, +15% now, i searched everywhere, no news, no announcement, what is going on?


----------



## sam76 (19 November 2007)

all-green-plz said:


> EKA just broke through, +15% now, i searched everywhere, no news, no announcement, what is going on?





Most likely nothing mate.

only 90,000 shares traded and the're 10% in the spread

All of the jvps are held tightly - if you want in you have to pay up.


----------



## Zird (29 November 2009)

Hello - hello.........     anybody there?

 "We come in peace - do not be scared"

Could be a case of either sleeping beauty or alien abduction.

Since the 17c highs of Sept 2006 this stock has declined to just under 7 cents in Dec. 2009.

Doesn't  anybody care about this one.


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## The Novice (8 February 2010)

I've held a number of shares in EKA for sometime and was wondering peoples thoughts on this share. Is this stock going to increase or will it linger around the 10c mark for a little longer?
Thank you in advance for any thoughts


----------



## condog (8 February 2010)

We cannot give advice in here but lets just say ADI and AUT have similar interests in the same fantastic project.... it might pay to go and read both those threads, starting with the most recent posts....as a lots changed in the last 2 weeks....  for the better in my opinion...

ALWAYS - DYOR and seek expert advice


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## The Novice (8 February 2010)

sorry! I wasn't really after advice, more peoples opinions. I'll have a read of the other two forums now


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## nioka (8 February 2010)

The Novice said:


> I've held a number of shares in EKA for sometime and was wondering peoples thoughts on this share. Is this stock going to increase or will it linger around the 10c mark for a little longer?
> Thank you in advance for any thoughts




I regularly trade between ADI and EKA and have done for a long time. I work on the precentage interest in Sugarloaf that both have, allow a margin for ADI's cash on hand and other interests. In my humble estimation I rate EKA at around 13c when ADI is 20c. Going on these figures I was happy to sell some ADI and buy EKA last week and probably will do so again this week. I will wait for EKA to catch up and swing the balance the other way and then I will trade back the other way and end up with more ADI than before. The balance often swings the other way. A few months ago I was able to sell EKA and buy ADI at an equal price. A rare event though.

Some of my old posts will verify this if you go back far enough.

EKA is not as popular as ADI and lags price changes.


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## condog (8 February 2010)

nioka said:


> I regularly trade between ADI and EKA and have done for a long time. I work on the precentage interest in Sugarloaf that both have, allow a margin for ADI's cash on hand and other interests. In my humble estimation I rate EKA at around 13c when ADI is 20c. Going on these figures I was happy to sell some ADI and buy EKA last week and probably will do so again this week. I will wait for EKA to catch up and swing the balance the other way and then I will trade back the other way and end up with more ADI than before. The balance often swings the other way. A few months ago I was able to sell EKA and buy ADI at an equal price. A rare event though.
> 
> Some of my old posts will verify this if you go back far enough.
> 
> EKA is not as popular as ADI and lags price changes.




Very smart move Nioka - Id noticed it, but not looked hard at it...just took a look and theres some very easy 10%-20% divergences can be picked up with reasonable regularity....... that does however assume both are exposed to equal capital growth.... but not a bad strategy on its own....


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## Kremmen (24 February 2010)

nioka said:


> In my humble estimation I rate EKA at around 13c when ADI is 20c.



I might even suggest you're being slightly conservative.
Here are some EKA/ADI comparisons:
book value per share Jun 09: 0.07/0.06 = 117%
52-week low: 2.6/4.5 = 58%
52-week high prior to recent rises: 14/20 = 70%
profit/share from sugarloaf: (12.5/115M)/(20/147M) = 80%

I reckon from this that a fair estimate for EKA should be around 70% of ADI. With ADI now hitting 35c, EKA might be expected to be around 24c, yet is trading at 15.5c. (My thanks to whoever sold to me at 13.5 a few days ago.)


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## jancha (24 February 2010)

Kremmen said:


> I might even suggest you're being slightly conservative.
> Here are some EKA/ADI comparisons:
> book value per share Jun 09: 0.07/0.06 = 117%
> 52-week low: 2.6/4.5 = 58%
> ...




Wasn't me i bought as well.
With all the upside to Adi Aut & Eka i cant understand why anyone would want to sell.


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## Miner (24 February 2010)

jancha said:


> Wasn't me i bought as well.
> With all the upside to Adi Aut & Eka i cant understand why anyone would want to sell.




Some one will sell so that you can buy

Not every one is like Pauline Hanson to print notes to increase money supply. One is to sell and one is to buy. In between the brokers to get richer. If you do want to take risk then be a broker and each transaction you feel good 
I also realised the strength and connection of EKA with AUT and ADI. So bought it today. But could not understand why it went down when ADI went up


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## nioka (25 February 2010)

Kremmen said:


> I might even suggest you're being slightly conservative.
> Here are some EKA/ADI comparisons:
> book value per share Jun 09: 0.07/0.06 = 117%
> 52-week low: 2.6/4.5 = 58%
> ...




I base my values by taking into account;

1. Market caps relative to each other. SP plus number of shares on offer.
2. Cash on hand.
3. Value of interests outside the joint venture.
4. The track record of the management. 
5. Cash burn.
6. Company risk (individually).
7. Liquidity. Ability to trade reasonable numbers at short notice.
In that order of importance. Each one is important. 
8. Brokerage.
9. Tax implications on the trades.

Being conservative is not considered. It is a value trade.


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## nioka (25 February 2010)

I should add that I am buying EKA and AUT without selling ADI this week. I believe all have room to move. EKA is especially good value according to my calculations. The results of the fracs speak for themselves.

I walk the talk.


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## prgudula (3 March 2010)

ASX RELEASE
3 March 2010
SUGARLOAF OPERATIONS UPDATE
Eureka Energy Limited ("Eureka") is pleased to provide the following update to the market on operations within the Sugarloaf AMI.
Morgan-1H
Eureka has been advised by the operator Hilcorp Energy ("Hilcorp") that the second farm in well within the Sugarloaf AMI, the Morgan-1H well, was spudded on Friday, 26th February (US CST). The well is located approximately 5 km North West of the Easley-1H well and is expected to take approximately 6 weeks to drill to TD. The well design includes a vertical pilot hole prior to drilling a horizontal section that will access both the Austin Chalk and Eagle Ford horizons following fracture stimulation.
Easley-1H
As at 0730 hrs on 2 March 2010 (US CST) the well was drilling ahead at a depth of 15,535ft (MD) with approximately 2,800 ft of horizontal section now having been drilled within the reservoir. Elevated gas readings have been observed since penetrating the reservoir.
Kennedy-1H and Weston-1H
Both wells continue to produce to sales in line with expectation. Production tubing has yet to be installed in either well and further updates on production rates will be provided once this has occurred and stable flow rates have been established.
Eureka has a 12.5% working interest (pre-farmout) in the Sugarloaf AMI. Other ASX listed participants in the Sugarloaf AMI, and their respective pre-farmout working interests are:
Aurora Oil and Gas Limited 20%
Adelphi Energy Limited 20%
Yours sincerely
EUREKA ENERGY LIMITED
Graham Dowland
Chairman


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## Miner (8 March 2010)

TRADING HALT FOR EQUITY RAISING.
Will it for again a lot of sophisticated investors at the cost of existing shareholders ? 

We have to wait until 10 Dec to learn it


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## Agentm (8 March 2010)

Miner said:


> TRADING HALT FOR EQUITY RAISING.
> Will it for again a lot of sophisticated investors at the cost of existing shareholders ?
> 
> We have to wait until 10 Dec to learn it




10 march 2010 miner.. i dont know where the 10 dec comes from but my research tells me 10 march latest..

EKA previous trading halt for a cap raising came with a clanger of an announcement the same day. which took the share to  a 100% gain for the sophisticated investors b4 they resumed trade. not sure if this will be a repeat, but would like to see news come through on ops none the less..

good luck to all investors


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## Miner (8 March 2010)

Agentm said:


> 10 march 2010 miner.. i dont know where the *10 dec *comes from but my research tells me 10 march latest..
> 
> EKA previous trading halt for a cap raising came with a clanger of an announcement the same day. which took the share to  a 100% gain for the sophisticated investors b4 they resumed trade. not sure if this will be a repeat, but would like to see news come through on ops none the less..
> 
> good luck to all investors




It was a typo Agentm. 

I meant to be writing March which was stated in the attachment as well. 

Thanks for being vigilent


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## estseon (9 March 2010)

Nothing from EME so perhaps EKA is going it alone. ADI seems quite strong enough and AUT seems ok until post-carry on Longhorn and Ipanema.

The timing is a bit of a puzzle.


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## Miner (11 March 2010)

Good sense prevails

The EKA has announced its capital raising. Unlike many current capital raising the shareholders registered until 19 March are privileged to get discounted offer @10 cents.

It is unknown however how much the price will move south as ex rights


Please see attached document for further details

Cheers
PS : I hold a small parcel


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## nioka (11 March 2010)

Miner said:


> Good sense prevails
> 
> The EKA has announced its capital raising. Unlike many current capital raising the shareholders registered until 19 March are privileged to get discounted offer @10 cents.
> 
> It is unknown however how much the price will move south as ex rights:confused




I suggest that the need for capital raising has been factored into the SP. The fact that the existing shareholders are to benefit by getting the discounted price and not the usual"funds and sophisticated investors" is a plus and I can see no reason for any drop in the SP.


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## rock86 (11 March 2010)

nioka said:


> I suggest that the need for capital raising has been factored into the SP. The fact that the existing shareholders are to benefit by getting the discounted price and not the usual"funds and sophisticated investors" is a plus and I can see no reason for any drop in the SP.




I can't see any reason for it to move south either (I don't hold EKA but hold ADI) and don't see a reason for any of the JVP's to be moving south, I myself won't be selling for a while cause there is still a hell of a lot of money to be made on the JVP's. But for some reason on the back of this capital raising Im going to bet that EKA does drift south, even though it shouldn't all IMO


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## estseon (11 March 2010)

It's underwritten so they must have had a good story to tell. Perhaps we'll hear it one day

Don't hold.

Good luck holders. It's not a race. It's a charge.


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## Miner (11 March 2010)

nioka said:


> I suggest that the need for capital raising has been factored into the SP. The fact that the existing shareholders are to benefit by getting the discounted price and not the usual"funds and sophisticated investors" is a plus and *I can see no reason for any drop in the SP*.







rock86 said:


> *I can't see any reason for it to move south either *(I don't hold EKA but hold ADI) and don't see a reason for any of the JVP's to be moving south, I myself won't be selling for a while cause there is still a hell of a lot of money to be made on the JVP's. But for some reason on the back of this capital raising Im going to bet that EKA does drift south, even though it shouldn't all IMO




Thanks folks for your good thoughts and I wished that may be the case.

However as you could see our thoughts are not shared by market today lowering the price of EKA already at 12 cents :

Trade of EKA occurring on Thursday, 11 Mar 2010
 52 Week 
Time Price Volume Value Condition 
*11:15:45 AM 0.120 24,000 2,880.00   *
11:03:27 AM 0.120 83,000 9,960.00   
10:08:09 AM 0.130 50,000 6,500.00   
10:02:12 AM 0.130 25,000 3,250.00


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## barney (11 March 2010)

rock86 said:


> I can't see any reason for it to move south either .
> But for some reason on the back of this capital raising Im going to bet that EKA does drift south, even though it shouldn't all IMO




Howdy Rock,

There will be a few larger holders who will be happy to unload shares at anything above the entitlement issue price simply because it is basically "free" money, cause they just can just top up again with the 10 cents issue price.

What you may see though, is once the record date (19th March) comes around, the "cheap" shares offered up to that point will disappear *real* fast ............ Good chance for punters to get in if they have been waiting for an opportunity ...... If the play is as good as it looks, an average buy in price of anywhere around 11 cents should look pretty good value into the future ....  Cheers.


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## estseon (11 March 2010)

barney,

It's quite possible that some of the selling of ADI & AUT is by investors looking to release cash to take up the rights as well. I don't feel that too much regard should be paid to price wobbles during a period when portfolio adjustment can be expected.

I hold ADI, AUT & EME and being non-resident would not qualify for the rights - and that is another factor to take account of - investors barred from taking up the rights


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## barney (11 March 2010)

estseon said:


> barney,
> 
> It's quite possible that some of the selling of ADI & AUT is by investors looking to release cash to take up the rights as well. I don't feel that too much regard should be paid to price wobbles during a period when portfolio adjustment can be expected.
> 
> I hold ADI, AUT & EME and being non-resident would not qualify for the rights - and that is another factor to take account of - investors barred from taking up the rights





Hi Estseon, (and may I compliment you on your quality postings on various aspects of the Sugarloaf/Sugarkane play in general 

Agree totally ..... I think anyone buying EKA today was making a smart business decision .... This stock today was sitting at a premium to both ADI (which I hold) and AUT ....

The fact that it has the announced cap raise at 10 cents seems to have spooked a few punters into selling when they maybe didnt need to ..

I'm not sure if people understand that today, they could buy into EKA at a heavily discounted price .... and then give themselves the opportunity to pick up 1 for 6 more shares at a ridiculous 10 cents per share ... simply a recipe for making money for nothing  ....... 

anyway, good luck to yourself and the many punters who see the potential in this play in general ...... certainly been an interesting ride so far !!


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## nioka (11 March 2010)

Miner said:


> Thanks folks for your good thoughts and I wished that may be the case.
> 
> However as you could see our thoughts are not shared by market today lowering the price of EKA already at 12 cents :




I believe the market is irrational at times like these. In order to capitalise I put in both buy and sell orders. Buy if it fell and sell if it went up and made the relative price with the other partners a swap trade.

 It went down so I bought a few. Volatility gives opportunity. The cap raising is a good proposition for current holders in my opinion.


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## barney (11 March 2010)

nioka said:


> I believe the market is irrational at times like these. In order to capitalise I put in both buy and sell orders. Buy if it fell and sell if it went up and made the relative price with the other partners a swap trade.
> 
> It went down so I bought a few. Volatility gives opportunity. *The cap raising is a good proposition for current holders* in my opinion.




agree Nioka ..... Large holders can try and squeeze a few free dollars by selling above the issue price ...... and simply re-buying at 10 cents ...

New punters (if they had been paying attention  ...  could have bought in low, given themselves 1:6 rights, and got in on the play at a level which a couple of weeks back was not possible ..... The mathematics of the opportunity is a win win ...... assuming Sugarloaf is the real deal 
Cheers.


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## lemontree (11 March 2010)

"Ex Date (date from which securities commence trading without the entitlement to participate in the Entitlements Issue)
15 March 2010
Record Date (date for determining entitlements of Eligible Shareholders to participate in the Rights Issue)
19 March 2010"

Taken from their announcement today. I'm slightly confused... does this mean we need to have EKA shares by the 15th in order to be offered the 10c 1:6 per share? Does this also mean we have to take into account T+3 so.. you'd need to have the EKA shares *registered* by the 15th?

And final question, how does an EKA holder go about accepting the 1:6 shares offer. Thanks!


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## estseon (12 March 2010)

If you go to the ASX website and type EKA in the quote box:

http://www.asx.com.au/asx/markets/priceLookup.do?by=asxCodes&asxCodes=eka

Look in the Status box - CE = Cum Entitlement

Monday you should see- XE = Ex Entitlement

Then the shares will be trading without the right to take up the 'rights'. You will be buying and selling without those rights.

If I buy any myself, it would be then or after - foreigners get royally stuffed so far as I can see.

As to the record date: that, I think, is when they produce a list of shareholders entitled. I don't think that it has anything to do with settlement. They can't expect to do it immediately the shares start trading ex-entitlement.

If you read their release, you will see that they will be sending out a prospectus of some kind. If your shares are dematerialised (held by your broker in a nominee account etc), your broker should send you an alert requesting instructions - that's the way it works in the UK.

I suggest that you contact your broker.

If you want to buy with the entitlement, tonight/today is possibly your last chance. But read the release for yourself.


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## The Novice (19 April 2010)

Is it possibe for someone with more idea than me to give an opnion on this stock. I've purchased a number of sharers in Eka on a friends advice and recently purchased more through the capital raising.
The price has dropped again today and i was hoping to get peoples thoughts on this.
Thanks in advance.


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## nioka (19 April 2010)

The Novice said:


> Is it possibe for someone with more idea than me to give an opnion on this stock. I've purchased a number of sharers in Eka on a friends advice and recently purchased more through the capital raising.
> The price has dropped again today and i was hoping to get peoples thoughts on this.
> Thanks in advance.




I see EKA as the little brother of ADI and AUT. I continuously trade between the three as their relative SP changes. The position as I see it is that ADI and AUT have a nett interest of 10% in the current Sugarloaf program and EKA have 6.25%. AUT has a higher % interest in other areas and ADI has an interest in Yemen that may have some value.

Allowing for the cash position and the market cap of each I make a decision as regards the value of all three. My current opinion is that EKA is underpriced and I have been accumulating more EKA in the last few days trading.

They have had a capital raising which gave existing shareholders the opportunity to buy at a discount. The issue was underwritten and undersubscribed which gives us some short term problems. The underwriter may want to sell the shares they must take up and there will be some that took up the issue to make a short term profit. Some sold to take up the offer before the closing date which caused an SP fall and now there are some selling to recoup their outlay and will sell for a small profit or even to break even.

I say short term because it will be over in a flurry and if the fraccing results are as good as predicted by most holders I would expect EKA to catch up with the other two on a relative value basis.

EKA has a history of lagging behind but it usually catches up. At one stage it was overpriced and sold on a par with ADI. Naturally I sold all my EKA and bought ADI at that stage. Recently I sold ADI and bought EKA and I'm waiting patiently to slowly switch back to ADI or AUT.

Which ever one is held they all have potential to increase dramatically........ IF.... the oil and gas is a great earner for the partners. Until that happens they are spec stocks but as each day passes the spec tag seems to be getting smaller.  

DYOR. I'm often wrong and to prove it I'll admit to selling a lot of AUT and buying ADI when they were selling at roughly the same price.


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## Kremmen (30 April 2010)

nioka said:


> I see EKA as the little brother of ADI and AUT. I continuously trade between the three as their relative SP changes. The position as I see it is that ADI and AUT have a nett interest of 10% in the current Sugarloaf program and EKA have 6.25%. AUT has a higher % interest in other areas and ADI has an interest in Yemen that may have some value.
> 
> Allowing for the cash position and the market cap of each I make a decision as regards the value of all three. My current opinion is that EKA is underpriced and I have been accumulating more EKA in the last few days trading.




I concur, but I don't bother to trade in/out. I just buy whichever one seems the best value at the time and hold, as they all have significant upside if all goes well.

The recently announced (today) capital raising by ADI, which doesn't give existing shareholders (except the big ones) the opportunity to participate, screws over ADI shareholders and dilutes their (our) holding, making EKA (and AUT) relatively even better value now.


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## Kremmen (1 June 2010)

Funny to see that nobody even bothered to pick EKA in the June Stock Tipping Competition! If someone had, they'd have been in 2nd place at the end of day 1.

EKA continues to be the little partner to AUT and ADI that seems to remain forgotten.


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## Kremmen (7 July 2010)

According to today's announcement, AWE, about to conclude the take over ADI, has 4.9% of EKA. They've said they have no intention of buying more, but why would we believe that?


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## Agentm (7 July 2010)

Kremmen said:


> According to today's announcement, AWE, about to conclude the take over ADI, has 4.9% of EKA. They've said they have no intention of buying more, but why would we believe that?




eka has no cash to keep going.. so in a real sad place

its got to either merge with AUT or look at selling to the highest bidder on market

aut will have to offer a fair conversion ratio for the merge imho, and i am told a major holder is not keen on any merge atm

further dilutions for eka will be a less favourable path imho 

time for awe to spend more cash and go all in.. or the management of eka must be thinking what value there is in a merge

time for the show to start imho...


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## Kremmen (7 July 2010)

Agentm said:


> eka has no cash to keep going.. so in a real sad place
> 
> its got to either merge with AUT or look at selling to the highest bidder on market




Why do you think so? Sure, it hasn't got the huge cash pile that AUT is currently raising, but it doesn't have the same costs either. EKA should have enough to last a while, and a while should be all it needs if we keep getting good news.


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## Agentm (7 July 2010)

Kremmen said:


> Why do you think so? Sure, it hasn't got the huge cash pile that AUT is currently raising, but it doesn't have the same costs either. EKA should have enough to last a while, and a while should be all it needs if we keep getting good news.




just fill me in a little here on how much capital eka has and how much you think it needs going forward

perhaps one of us is dreaming?


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## bazollie (7 July 2010)

Maybe Captain Kremmen has been distracted by his first mate Carla!!
A bit sads really for me as I am showing my age here!

Regards
Bazollie


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## Kremmen (7 July 2010)

Agentm said:


> just fill me in a little here on how much capital eka has and how much you think it needs going forward




They have the $2.2M from the recent CR, plus however much cash they had left before that. How much they need going forward depends on how quickly the JV wants to drill after the farm-in wells are done. ... Your guesses on that are probably better than mine.


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## philly (12 July 2010)

EKA is in a trading halt this morning pending an announcement regarding a capital raising. Not surprising given the rush of activity since Hilcorp have become involved in the sugarloaf


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## AngusSmart (12 July 2010)

Agentm said:


> just fill me in a little here on how much capital eka has and how much you think it needs going forward
> 
> perhaps one of us is dreaming?




10mil + @ 18-19c dilution of < 50mil shares.. thats my guess anyway!

this story seems a little familiar something something ADI.. next its the take over bid by someone..


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## Kremmen (13 July 2010)

Given that they appear to want periodic injections of cash, it would be really great if they'd do a 1:X issue with a free option attached exercisable at, say, 17c? The options would be a nice reward to shareholders who subscribe, as well as giving a future capital source without requiring another cap raising.


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## Agentm (14 July 2010)

AngusSmart said:


> 10mil + @ 18-19c dilution of < 50mil shares.. thats my guess anyway!
> 
> this story seems a little familiar something something ADI.. next its the take over bid by someone..




now your getting the picture kemmen

everyone is standing around in AWE of whats happening

lol

lets see if eka will put cheap shares in the hands of a select few or will it give an opportunity for the masses to participate..


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## nioka (14 July 2010)

Agentm said:


> lets see if eka will put cheap shares in the hands of a select few or will it give an opportunity for the masses to participate..




I'm waiting to see an offer from AWE or AUT come up now. Accellerated by the trading halt and the possibility that EKA is still looking at their options.

I'm still a bull. I still believe that the AUT and EKA SP was held back by the AWE offer. They aligned themselves to the offer rather than adjust to the good news following the Hillcorp work. I believe that the ADI SP would have easily reached 60c by now had it reacted to the news rather than be governed by the AWE offer price. We were robbed.....

We will be robbed again with EKA if the new capital finds itself in the hands of AWE at an early stage.


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## nioka (14 July 2010)

Capital raising, shareholders get offered 1 for 6 at 17c. A good result and I'm happy with that. The additional capital should be productive and not too dilutive.


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## Kremmen (14 July 2010)

nioka said:


> Capital raising, shareholders get offered 1 for 6 at 17c. A good result and I'm happy with that.



And they don't go ex until this coming Friday, so there is still time to buy more and be part of the cap raising.


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## Agentm (14 July 2010)

nioka said:


> I'm waiting to see an offer from AWE or AUT come up now. Accellerated by the trading halt and the possibility that EKA is still looking at their options.
> 
> I'm still a bull. I still believe that the AUT and EKA SP was held back by the AWE offer. They aligned themselves to the offer rather than adjust to the good news following the Hillcorp work. I believe that the ADI SP would have easily reached 60c by now had it reacted to the news rather than be governed by the AWE offer price. We were robbed.....
> 
> We will be robbed again with EKA if the new capital finds itself in the hands of AWE at an early stage.





its a share that you can be bullish on nioka, its about to be taken over in the very near term.. awe did not take a stake in it for no reason.. 

i cant see how adi would be above the .42 AWE bid price, aut only managed to get to .80, and has been in that hold pattern for a little while now, basically as long as the adi bid was around.. but it should be $1.10 if adi is .42.. 

if aut was trading at $1.50 i would agree adi should be .60





nioka said:


> Capital raising, shareholders get offered 1 for 6 at 17c. A good result and I'm happy with that. The additional capital should be productive and not too dilutive.




the awe buying at .20 is being played well by the eka management, diluting from that base is clever..  and eka is selling the share at the correct ratio to the current aut price..

hard to see eka run up now..


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## nioka (14 July 2010)

Agentm said:


> its a share that you can be bullish on nioka, its about to be taken over in the very near term.. awe did not take a stake in it for no reason..
> 
> i cant see how adi would be above the .42 AWE bid price, aut only managed to get to .80, and has been in that hold pattern for a little while now, basically as long as the adi bid was around.. but it should be $1.10 if adi is .42..
> 
> if aut was trading at $1.50 i would agree adi should be .60




I firmly believe that, in the absence of the AWE bid that the fundamentals alone would have increased tha SPs of all three well beyond the price that set the cap. That cap was the AWE offer price.AWE will not find it as easy to cap the EKA price and far less easy now to cap the AUT price. I think that anyone sitting back waiting for AUT at 75c will be extremely disappointed.


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## kyrondgm (16 July 2010)

buyers and sellers have dried up - yesterday was stacked with buyers, am i right in saying they have just got in for the entitlements issue and now we're going to have a flat period with limited activity until the issue is complete?


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## nioka (23 July 2010)

My choice of stock of the day (for discussion please)

I've been a long time investor in EKA and have traded in and out with AUT and ADI as mentioned many times in the past to a point where I know many here are bored with any mention of the fact. It never bores me as it has been a great little earner these last couple of years. It is still alive and well and certainly not boring.

We are now seeing a point where EKA is moving from being a wildcat prospector to being an oil producer as the new partner, Hillcorp, proves their worth in the drilling program. Even though there has been considerable dilution with the shares and the farm in EKA still has a valuable interest in the Sugarloaf oil shales. Always the little brother but still part of the family.

The current share offer, an SPP of 1 for 6 has been offered to existing shareholders which shows that the directors have its shareholders interests at heart, unlike ADI where they allocated new shares to AWE and the funds, excluded existing holders. We saw what then happened to ADI. This offer wmay hold back the SP in the short term but the additional funds will ensure that the company is in a position to share in the benefits of production drilling and lead to increased future income.

EKA, as I see it is worth investigating The SPP opens on 26th July. Current purchases and sales are ex rights to the SPP.

DYOR.


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## Huitzii (5 August 2010)

There hasn't been any posts here for over a week so im keen to get this thread moving again.
EKA has been a great little money earner for a lot of traders in the past and I would like to think that its not at its top ATM.
With the SPP happening ATM we could see the sellers controlling this stock as it did and still is with AUT.
The point is where is EKA heading from here? For the 4th time in the last 2 months (08-06-2010) it has hit but not broken the 22 cent resistance line, I have shown this with arrows.
The 10 day average is up as is the 68 day average and the 90 day average is up aswell and the bollinger bands are tightening so all looks good on the surface but the SPP could see a minor SP drop over the next week or two.
Does anyone think that a takover is possible/likely with EKA?



I hold EKA
DYOR


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## Agentm (5 August 2010)

huitzii

that is the plan that other have for it, but there would be debate whether the various holders of notoriety in the register have the same ambitions.

many things could have happened but didnt in the last year, but the dilution of the share and the delays in moving forward has got its advantages and disadvantages

my view is that the takeover for eka by awe would be better served with one happening now.  if the timing on adi was correct for awe atm, then the timing for an eka takeover must also be right now. 

a nice bid at .28 for the share would be a great start point, aut would probably not merge eka for the same reasons that it previously hasnt..

a take over is something i fully expect

but will it happen?


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## nioka (5 August 2010)

Agentm said:


> huitzii
> 
> that is the plan that other have for it, but there would be debate whether the various holders of notoriety in the register have the same ambitions.
> 
> ...




That possibility is one that will be harder for AWE to crack than it was with ADI.  EKA has looked after its shareholders and I suggest the directors will keep looking after them. I suggest they have more spine than those at ADI.

 Just look at the results today. 57,000 barrels of top quality condensate in 60 days from one well. Plus gas. Kawolick progressing well.  If awe are interested, and I guess they are, then about 50c would be a starting price.


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## Kremmen (5 August 2010)

EKA just touched 24c.
32 buyers facing 6 sellers.
Buying quantity now outnumbering selling quantity by more than 10:1.


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## nioka (5 August 2010)

Kremmen said:


> EKA just touched 24c.
> 32 buyers facing 6 sellers.
> Buying quantity now outnumbering selling quantity by more than 10:1.




Overall there isn't a lot of volume. Lots of bot trades that make up the majority of trades. I suggest the activity is trying to bring out some sellers but it doesn't seem to be having a lot of success. Maybe it is AWE trying to accumulate without putting in a big order and putting up the price.


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## AngusSmart (5 August 2010)

nioka said:


> Overall there isn't a lot of volume. Lots of bot trades that make up the majority of trades. I suggest the activity is trying to bring out some sellers but it doesn't seem to be having a lot of success. Maybe it is AWE trying to accumulate without putting in a big order and putting up the price.




Does Awe hold a large percentage in EKA? i can quiet work it out? there isnt a list of any major holders as far as i can see.


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## sam76 (5 August 2010)

...............Awe bought just under 5% of Eureka after finalising the ADI purchase from memory............


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## Huitzii (5 August 2010)

On good news today we saw EKA break the dreaded 22 cent resistance and move on to break the next level of 23 cent resistance to finish the day on 24 cents, this level hasn't been seen since June 2008.
It was good to see that not many offloaded there shares with the SPP and IMHO if the current holders stay tight tomorrow could be another good day.
UP UP UP EKA
DYOR


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## J&M (9 August 2010)

now up to 26c-27c 
I had an order in for 21.5c I cant see it falling to that level 
to many buyers in and not enough sellers 
how high will this go 
opinions  welcome 


James


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## Kremmen (9 August 2010)

J&M said:


> now up to 26c-27c
> I had an order in for 21.5c I cant see it falling to that level
> to many buyers in and not enough sellers
> how high will this go




No idea, directly. I certainly think (and hope) you've missed the boat on your 21.5c order.

I suspect EKA will continue to follow AUT. When I first started watching these stocks in Feb, AUT was 3.8x the price of EKA. EKA appeared to be ignored at times, while all the focus was on ADI and AUT, but has caught up and overtaken that ratio at times.

WRONG'UN put a graph of the relative prices over time on the AUT thread, showing mostly 3.5-4x, with his most recent value at 3.83x.

I think we can factor in a little more value to EKA on the basis of being a possible takeover target.


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## nioka (9 August 2010)

J&M said:


> now up to 26c-27c
> I had an order in for 21.5c I cant see it falling to that level
> to many buyers in and not enough sellers
> how high will this go
> ...




How long is a piece of string? Same answer.

However I will say this. My investment account has more EKA than any other share both in numbers and in value and none of them are for sale at this stage. In my trading account I have been selling some EKA and buying AUT because I believed the balance was in EKA's favour. That imbalance is decreasing slightly.

Why the increase in the SP?. I have said for some time that the AWE offer for ADI held back the reflection of the good drilling results in the SP of all three. Now that is out of the road the SPs are showing their value.

Speculation regarding EKA being a possible takeover target has also probably boosted the EKA SP.

EKA is also helped by the fact that twice now EKA has given its shareholders first chance to take up a capital issue. The last one at 17c was the equivalent of giving a divvy to shareholders with a possible 60% gain now on the issue price.At 1 for 6 issue that is a 10% overall return.

Is it going to keep rising?. All we need is increased production and that seems most likely in the very near future.

Should you sell now?. That depends on your attitude to risk and your own need to take a profit now. Only you can be the judge.

Should you buy now and what should you pay? Same answer.


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## Huitzii (9 August 2010)

Good return for EKA today, but I think its almost made its top for now (IMHO about 25% of AUT'S SP)
AUT could make $1.10 tomorrow which would make EKA at about .28 cents.
I also think that the possibility of a takeover is worth a few extra cents, so an SP of .31 cents maximum this week.
A top today of .28 cents is a level that we haven't seen since 19th November 2007.
Good luck to all EKA holders
I hold EKA
DYOR


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## Huitzii (10 August 2010)

EUREKA ACQUIRES OPTION ON NEW ACREAGE IN THE EAGLE FORD TREND 
http://www.asx.com.au/asxpdf/20100810/pdf/31rsxs2xt2m8mk.pdf


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## condog (10 August 2010)

the Board is pleased to announce that a wholly-owned US subsidiary of Eureka has signed an option agreement to acquire a 100% working interest (73% Net Revenue Interest) of a 761.5 acre block of leases on the eastern extension of the Eagle Ford trend, some 90 miles north-east of Eureka’s producing Eagle Ford Shale-Austin Chalk interest in the Sugarloaf Project. On exercise of the option the new lease block will increase Eureka’s overall net acreage position in the Eagle Ford trend by more than 50%.
The lease block is located in Fayette County, south of the major producing Giddings Oil Field and west of Apache Corporation’s extensive Eagle Ford Shale lease holdings in Brazos, Burleson and Lee Counties. Three vertical wells were drilled on the leases during the 1980’s Austin Chalk exploration boom. All of those wells intersected Austin Chalk with indications of oil, underlain by Eagle Ford Shale at about 10,700 feet. Wireline log analysis indicates that the lower Austin Chalk and the Eagle Ford Shale have significant, mostly fracture porosity (up to 18%) and the Eagle Ford and the lower Austin Chalk are both interpreted to contain hydrocarbons.
Based on the results from recently drilled horizontal wells in the emerging regional Eagle Ford trend, Eureka believes that the lease block is located in the oil leg of the trend. Eureka’s assessment of the data from old wells on the lease block suggests that horizontal wells with appropriate multi-stage completions, similar to those successfully applied at Sugarloaf, would produce hydrocarbons from the Eagle Ford and lower Austin Chalk.
Wireline log analysis also indicates that all three existing wells intersected hydrocarbon bearing Wilcox Sandstone at depths around 6300 feet. This represents a significant secondary target within the block.
Eureka is continuing its extensive review of well and seismic data from the leases and surrounding area, with the objective of selecting locations for an initial horizontal well to test the primary Eagle Ford Shale-Austin Chalk target and the shallower Wilcox secondary target.
Eureka intends to acquire the lease block from private interests, resident in the USA. Total consideration payable to the vendors and introducing parties is USD 821,500 in cash and 900,000 new EKA shares. Of this total, USD 200,000 has been paid as a non-refundable option fee, with the balance due upon exercise of the option which must occur by the 20 August 2010.


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## AngusSmart (10 August 2010)

So Discuss. what is this new area like?

why wasnt it snapped up by someone else earlier? Will hilcorp be on board doing the drilling?

what are others thoughts. i was going to jump in on the EKA ride this morning..

I Have been trying to find Fayette County on the map.. but come up with nothing!


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## Buckfont (10 August 2010)

AngusSmart said:


> So Discuss. what is this new area like?
> 
> why wasnt it snapped up by someone else earlier? Will hilcorp be on board doing the drilling?
> 
> ...




This might help. Fayette County is half way between San Antonio and Houston on E/W Interstate 10 and N/S Highway 77.

http://www.co.fayette.tx.us/images/locator_map.pdf


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## AngusSmart (10 August 2010)

I was looking on this one http://www.oilshalegas.com/sitebuildercontent/sitebuilderpictures/eaglefordshalemap-2.JPG

but thanks i did come across that one and google maps also had fayetteville


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## condog (10 August 2010)

I finally bought EKA this morning, i like what i see they have done with the extra acerage in terms of a TO value which is the reason i bought in.

USD 821,500 in cash and 900,000 new EKA shares

761 Acres @75% NRI. = 570.5 Net Acres

900,000 shares at say 27c = 243,000

821500+243000=$1064500

1064500/570.5 = $1865 per net acre. 

At $15M NPV per well say 50 acre spacing it can provide 11 wells $165M

Using a 20% value on future NPV , they just added something like from $16 to$32M to the value of a TO of EKA, for a little over $1M dollars. = 10c - 20c per share for a TO.

Wonder who leaked it to the market yesterday?

Smart move imo.


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## AngusSmart (10 August 2010)

condog said:


> I finally bought EKA this morning, i like what i see they have done with the extra acerage in terms of a TO value which is the reason i bought in.
> 
> USD 821,500 in cash and 900,000 new EKA shares
> 
> ...





I finally picked myself up a nice parcel this morning too 9th on the list.

was very happy with the news this morning, and cant wait for it to launch off some more!

where was this info leaked to the market yesterday??


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## AngusSmart (10 August 2010)

Just reading thru the AUT report out now. found a nice little map for anyone interested in the new location of EKA's area

And its location from where AUT and EKA are in now..


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## Kremmen (12 August 2010)

There's little that can be better than a stock that closes on its 52-week high on a day when the rest of the market is hammered.


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## nioka (12 August 2010)

Kremmen said:


> There's little that can be better than a stock that closes on its 52-week high on a day when the rest of the market is hammered.




What makes it even better is the fact that we could buy 1 for 6 held at only 17c. It weathered the dilution.


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## Huitzii (12 August 2010)

nioka said:


> What makes it even better is the fact that we could buy 1 for 6 held at only 17c. It weathered the dilution.



I havent traded my 1 for 6 as yet...just waiting to see what happens in the next few weeks in regards to a possible takeover ...for now I hold
DYOR


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## condog (13 August 2010)

seems like everyones holding for an upgrade on the back of the AUT reserves report and all the TO speculation. Not many on the sell side.


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## nioka (13 August 2010)

condog said:


> seems like everyones holding for an upgrade on the back of the AUT reserves report and all the TO speculation. Not many on the sell side.




EKA has always been a tightly held stock. I have never been able to trade very big orders without sending the price upwards, even in the tough times. It has broken away from being tied too closely to AUT.


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## Kremmen (13 August 2010)

Entitlements Issue release to the ASX says that 3,607,811 shares were not taken up at 17c.

Given the close today at 32c, I can only marvel at the idiocy of some shareholders. Nice windfall for Bell Potter, the underwriters.


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## luap77 (13 August 2010)

Too right! I would have had the lot if they were on offer at 0.17. It's amazing that this opportunity was passed up, especially given what transpired with ADI.


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## Huitzii (13 August 2010)

*POST 177 on 9th-August-2010, 09:44 PM *


Huitzii said:


> Good return for EKA today, but I think its almost made its top for now (IMHO about 25% of AUT'S SP)
> AUT could make $1.10 tomorrow which would make EKA at about .28 cents.
> I also think that the possibility of a takeover is worth a few extra cents, so an SP of .31 cents maximum this week.
> A top today of .28 cents is a level that we haven't seen since 19th November 2007.
> ...




*ALMOST A PERFECT PREDICTION* 
Good luck to all EKA holders


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## nioka (18 August 2010)

I see problems here. EKA is now in a trading halt until Friday. This is more than the announcement of a resource upgrade. For the upgrade AUT only went into a preopen for 20 minutes. It is more than just that announcement.

I smell a takeover. I say smell because I suggest it will stink. We were robbed with the opportunistic takeover of ADI and it is now possible that it will happen to EKA. I'd like to think it is a share swap with AUT as that would be a sweet smelling one. A buyout by AWE is the one I worry about.

Friday cant come soon enough!


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## barney (18 August 2010)

nioka said:


> I see problems here. EKA is now in a trading halt until Friday. This is more than the announcement of a resource upgrade. For the upgrade AUT only went into a preopen for 20 minutes. It is more than just that announcement.
> 
> I smell a takeover. I say smell because I suggest it will stink. We were robbed with the opportunistic takeover of ADI and it is now possible that it will happen to EKA. I'd like to think it is a share swap with AUT as that would be a sweet smelling one. A buyout by AWE is the one I worry about.
> 
> Friday cant come soon enough!




My guess is it won't be a takeover announcement Nioka so you can rest easy  ...... They have to finalise the option to take on the new lease by friday, so my guess is they will combine the two announcements ...... 

I assume they can't put an estimate on the potential productivety of the new lease just yet, but maybe they will try and give a ballpark on it, which may be why they need an extra couple of days. If it produces anything like the Sugarloaf lease, it would certainly add some weight to the current SP, especially when we consider how AUT is "behaving". 
Cheers.


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## happytown (18 August 2010)

nioka said:


> I see problems here. EKA is now in a trading halt until Friday. This is more than the announcement of a resource upgrade. For the upgrade AUT only went into a preopen for 20 minutes. It is more than just that announcement.
> 
> I smell a takeover. I say smell because I suggest it will stink. We were robbed with the opportunistic takeover of ADI and it is now possible that it will happen to EKA. I'd like to think it is a share swap with AUT as that would be a sweet smelling one. A buyout by AWE is the one I worry about.
> 
> Friday cant come soon enough!




awe have put out an ann, re aut's reserve estimate (incl sugarkane) and stated they have only received the draft report and that they are awaiting the final report, expected shortly, maybe the same for eka



> *AWE reserve report for Sugarloaf AMI*
> 
> AWE Limited (“AWE”), via its subsidiary Adelphi Energy Limited, refers to an announcement by Aurora Oil & Gas (“AUT”) this morning in respect of the receipt of an independent Sugarkane reserves certification from Netherland, Sewell and Associates, Inc (“NSAI”).
> 
> AWE advises that it has received a draft reserve report only from NSAI in respect of its Sugarloaf AMI reserves. On receipt of the final report which is expected shortly, AWE will release further details.


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## Kremmen (18 August 2010)

nioka said:


> This is more than the announcement of a resource upgrade.




Slightly. They've also announced that they expect income from the initial wells to start last quarter this calendar year, rather than 1st Q 2011.


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## condog (18 August 2010)

Kremmen said:


> Slightly. They've also announced that they expect income from the initial wells to start last quarter this calendar year, rather than 1st Q 2011.




Its always been Q4 this year. Kowalick was a hicup, that they thought would be a delay, but then along came the huge flows of Morgan, Rancho and now the turnbulls, everything is back firmly on track for cash in Q4.

Eka should get a very good kick out of this. it derisks the decision for many and blind freddy can see they are more then likely imo to significantly increase those 1P reserves over time.


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## adobee (19 August 2010)

Huge amount of sellers jumped out of the woodwork this morning.. Why someone would dump $100k in one hit at 30c is beyond me unless they want to push it down or alternatively have been pushing it up to this point..
Anyway with cash flow soon on the way this looks very promising and with the lowerst market cap of the asx players in this region still looks good as a potential take over target..


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## kyrondgm (19 August 2010)

What the deuce is going on. Does anyone have a comparison of the expected reserves compared to the actuals in this latest report? I could imagine it is much lower than first anticipated, hence the dumping?!


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## Kremmen (19 August 2010)

adobee said:


> Huge amount of sellers jumped out of the woodwork this morning.. Why someone would dump $100k in one hit at 30c is beyond me




Really? I think there's an obvious reason. The 1:6 allotment arrived yesterday.

A few people have said to themselves "76% in a fortnight -- I'll take that" and sold. No matter how good this stock is, you'll seldom get that kind of gain anywhere.


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## Sdajii (19 August 2010)

Tragic, I know! I'm doing my bit to keep you happy, I just pushed the offer price up from 28c to 30c. I'm glad to be doing my bit, so selflessly 

I've been waiting for the day to come when the new shares become available. I must admit I hoped to get them a bit cheaper (originally I hoped to buy some for under 20c! Haha!), but I'm not tempted to take my 75ish% profit, I'd rather help others to realise theirs 

I'm glad this happened on what would have otherwise been a moderately negative day for EKA anyway - any jitters on a day when new shares are on issue is going to encourage profit taking.

Thanks to the sellers


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## Lert (19 August 2010)

After waiting patiently all day picked up a parcel at 28c at the close. These should go nicely with my AUT holdings.


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## Sdajii (19 August 2010)

Lert said:


> After waiting patiently all day picked up a parcel at 28c at the close. These should go nicely with my AUT holdings.




Nice one  I couldn't help myself and bought some more at 28c, added a reasonable chunk to my holdings today, very happy! Well done to those who bought in at 27.5c! I'd like to see them drop further tomorrow so I can pick some more up, but I don't really like my chances. Fingers crossed though  I think we'll be saying goodbye to prices in the 20s next week, or maybe tomorrow. Just speculations of course, but I expect the profit takers would mostly have acted today.


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## Sdajii (20 August 2010)

Picked some more up at 26.5c!  I'd love to see them drop more, if they do I'll top up further, but I think I have almost as much as I want now. Good times!


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## J&M (20 August 2010)

Sdajii said:


> Picked some more up at 26.5c!  I'd love to see them drop more, if they do I'll top up further, but I think I have almost as much as I want now. Good times!




yeah i also picked up at 26.5 cants then went up again 
I had to sell something which has not moved for a while 
I don't see it dropping to the 21c which i was after 
So will now wait and see 

James


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## lemontree (21 August 2010)

Picked some up myself at 27c! was hoping for 26c but that did not happen, eitherway im happy to be holding EKA for the moment


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## kyrondgm (24 August 2010)

jump on lads...EKA has dumped 20% in 2 days...more bargains to be picked up


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## mattyhammer (24 August 2010)

I'm offloading some other stocks to get more. EKA is filling the gap nicely. Bouncing off 24c this morning which is the high before the recent breakout. Hoping it should consolidate up around 28c over next few days before settling in above 30c and working its way skyward. Nice ones!!!


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## jancha (31 August 2010)

Sdajii said:


> Picked some more up at 26.5c!  I'd love to see them drop more, if they do I'll top up further, but I think I have almost as much as I want now. Good times!




Wont be good times at this rate unless you feel like it's a bargain buy @ 22c now instead of 28c.
I personally would like to see it head the other way!!


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## Sdajii (31 August 2010)

jancha said:


> Wont be good times at this rate unless you feel like it's a bargain buy @ 22c now instead of 28c.
> I personally would like to see it head the other way!!




I do think it's a bargain at 22-23c, and wish I'd waited a bit longer rather than rushing in straight after the 17c shares started being sold. having said that, I still think they'll be back up above 30c in the not too distant future. Unfortunately I have had some unforeseen expenses come up, otherwise I'd be topping up further at around 23c.

I think the 17c shares coming into peoples' hands at a jittery time has encouraged profit taking, and that has also brought AUT down, both by spooking people and also by encouraging them to sell AUT and buy EKA.

To me it's a pretty simple situation. We have a reasonably solid idea of how much oil we can get out of the ground we have, how much it will cost to do that, and it just depends on how quickly we can get that done (which we have some idea of) and what the price of oil does (which I see ultimately being our main price determining factor).

I don't think spending some time back in the mid to low 20s is going to hurt in the  long run, so it's just a chance to stock up. If I hadn't had my expenses (I'm unexpectedly having to buy myself a car) I'd be glad for the opportunity to top up again.


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## jancha (31 August 2010)

Sdajii said:


> I do think it's a bargain at 22-23c, and wish I'd waited a bit longer rather than rushing in straight after the 17c shares started being sold. having said that, I still think they'll be back up above 30c in the not too distant future. Unfortunately I have had some unforeseen expenses come up, otherwise I'd be topping up further at around 23c.
> 
> I think the 17c shares coming into peoples' hands at a jittery time has encouraged profit taking, and that has also brought AUT down, both by spooking people and also by encouraging them to sell AUT and buy EKA.
> 
> ...




Cant see it going back up to 30c in a hurry in fact i think the reason it did go that high was more of a T/O prospect after ADI was taken over by AWE & as well as positive news of coarse.
Now however the hype has died down and without further activity or news coming out i think it will continue to go down.
If you look at the buyers lined up opposed to the sellers there's a big difference to how it's stacked up from in the past.
Even with the POO at lows back then EKA had held it's ground not so now.
% wise AUT has faired better of late if you look at the 4.1 ratio.
Could that be because Aut has more drilling to come and more acreages?
Anyway why not take a bus for now & buy a Jag from your profits down the track?


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## Sdajii (31 August 2010)

I suppose it depends on what our vague time frames are. I can't see 30c within a week or two unless something exceptional happens, but I expect better than 30c within a year. The speculation about a takeover was based on someone willing to pay closer to what it's worth. I'm happy to hang on for a year or more to get the realistic value rather than sell out early. 

I'm not a fan of Jags, I think I'll buy a cheap car now and down the track put the EKA profits into land. Someone pop that real estate bubble for me!


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## Huitzii (1 September 2010)

I think EKA and AUT will have a bit more consolidation but I dont think that it will go too much longer.
EKA pretty much follows AUT'S chart and I feel that AUT is pretty much on its bottom, so with that assumption in hand EKA should start heading back up by early next week.....Just my own thoughts and do your own research.
Anyhow here is a comparison chart...EKA has an uncanny resemblance to AUT IMHO and they both give hints to each others trades.


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## adobee (13 September 2010)

Huitzii said:


> I think EKA and AUT will have a bit more consolidation but I dont think that it will go too much longer.
> EKA pretty much follows AUT'S chart and I feel that AUT is pretty much on its bottom, so with that assumption in hand EKA should start heading back up by early next week.....Just my own thoughts and do your own research.
> Anyhow here is a comparison chart...EKA has an uncanny resemblance to AUT IMHO and they both give hints to each others trades.
> View attachment 38683




with this in mind EKA is looking pretty good then at the moment.. i think its lagging behind a bit


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## jancha (13 September 2010)

adobee said:


> with this in mind EKA is looking pretty good then at the moment.. i think its lagging behind a bit




I agree Adobee that it's certainly lagging behind in ratio 4.1 to AUT but could it be because EKA dont have as much going on now most wells are completed with Hilcorp.
Both stocks have been driven by news.
Aut still has news to come where as EKA has little as it shows with EKAs volume in trading. Basiclly zilch.


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## nioka (13 September 2010)

jancha said:


> I agree Adobee that it's certainly lagging behind in ratio 4.1 to AUT but could it be because EKA dont have as much going on now most wells are completed with Hilcorp.
> Both stocks have been driven by news.
> Aut still has news to come where as EKA has little as it shows with EKAs volume in trading. Basiclly zilch.




EKA does have something going on at the moment. It has two wells waiting for fraccing or being fracced. It does not have as much going on as AUT but that in a way is an advantage. Because the drilling in sugarloaf has slowed it means that EKA will/should be cash flow positive ahead of AUT. Hillcorp are getting closer to having recouped their drilling costs so EKA will soon get cash payments from the producing wells. This should leave funds available to prospect the new lease areas.

In addition there is still the possibility of a takeover. There is also good news on the oil price. Good for producers that is.

EKA has a little ground to make up on AUT. In the past it has lagged but in the end it has caught up. With one AUT buying 4.69 EKA I suggest that is a good deal providing there is not a capital gains tax cost that is prohibitive.


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## jancha (17 September 2010)

nioka said:


> EKA does have something going on at the moment. It has two wells waiting for fraccing or being fracced. It does not have as much going on as AUT but that in a way is an advantage. Because the drilling in sugarloaf has slowed it means that EKA will/should be cash flow positive ahead of AUT. Hillcorp are getting closer to having recouped their drilling costs so EKA will soon get cash payments from the producing wells. This should leave funds available to prospect the new lease areas.
> 
> In addition there is still the possibility of a takeover. There is also good news on the oil price. Good for producers that is.
> 
> EKA has a little ground to make up on AUT. In the past it has lagged but in the end it has caught up. With one AUT buying 4.69 EKA I suggest that is a good deal providing there is not a capital gains tax cost that is prohibitive.




EKA seems to falling further & further behind AUT in the 4.1 ratio.
I hope your right about it catching up..That would put it back at around the 32c of it's high. Buying opportunity perhaps @ 26c.
It certainly doesn't have same attention that AUT is having in volume of late.
T/O perhaps for AUT?
Was holding both but sold out of AUT & loaded up on EKA for value.
Here's hoping it's the right move.


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## WRONG'UN (18 September 2010)

Ratio update
................................................................................................


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## barney (20 September 2010)

Director buying on market at between 26 and 26.5 cents to add to a Super Fund holding (now 2,500,000 shares)

I wonder what that tells us


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## kyrondgm (20 September 2010)

Probs just trying to make a statement of intent - the sell orders are drying up pretty quick now...kicking myself now for selling my EKA and buying more AUT on Thursday


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## jancha (24 September 2010)

kyrondgm said:


> Probs just trying to make a statement of intent - the sell orders are drying up pretty quick now...kicking myself now for selling my EKA and buying more AUT on Thursday




I thankfully did the opposite by selling AUT & buying EKA.
As in the past is starting to pull back in line with the ratio of 4.1 with AUT today.
 Currently 31c & looking positive.


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## nioka (27 September 2010)

My 4.2 to 1 ratio has been reached today with the percentage rise in EKA being much higher that that for AUT. As I have said in the past, EKA lags but it always seems to catch up sooner or later. A good day for both.


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## Huitzii (28 September 2010)

Quote:
Originally Posted by Huitzii View Post
I think EKA and AUT will have a bit more consolidation but I dont think that it will go too much longer.
EKA pretty much follows AUT'S chart and I feel that AUT is pretty much on its bottom, so with that assumption in hand EKA should start heading back up by early next week.....Just my own thoughts and do your own research.
Anyhow here is a comparison chart...EKA has an uncanny resemblance to AUT IMHO and they both give hints to each others trades.
Attachment 38683



adobee said:


> with this in mind EKA is looking pretty good then at the moment.. i think its lagging behind a bit




It took a couple of weeks but it did get there and the charts are looking very similar again IMHO


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## Sdajii (28 September 2010)

jancha said:


> Cant see it going back up to 30c in a hurry in fact i think the reason it did go that high was more of a T/O prospect after ADI was taken over by AWE & as well as positive news of coarse.
> Now however the hype has died down and without further activity or news coming out i think it will continue to go down.
> If you look at the buyers lined up opposed to the sellers there's a big difference to how it's stacked up from in the past.
> Even with the POO at lows back then EKA had held it's ground not so now.
> ...




This post is from less than four weeks ago  I think it's quite interesting to read back over the last month or two of posts in this thread right now! I'm very glad I acted on my predictions  Just a shame for me with the timing of my unexpected expenses coinciding with the bargains in the low to mid 20s, preventing another top up at that point.


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## Kremmen (5 October 2010)

Announcement today that one of the directors, Mark Wilson, bought an extra 700,000 EKA for his superannuation fund at almost 30c.


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## Sdajii (11 October 2010)

Kremmen said:


> Announcement today that one of the directors, Mark Wilson, bought an extra 700,000 EKA for his superannuation fund at almost 30c.




We must be overdue for an announcement; it's unusual for them to leave it this long without any word on what's going on. Given that one of the directors just topped up reasonably substantially at around 30c and we are presumably just about to get an update, the current moment seems an excellent time to jump in or buy some more.


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## jancha (12 October 2010)

Sdajii said:


> We must be overdue for an announcement; it's unusual for them to leave it this long without any word on what's going on. Given that one of the directors just topped up reasonably substantially at around 30c and we are presumably just about to get an update, the current moment seems an excellent time to jump in or buy some more.




They say no news is good news but in this case Sdajii i think the opposite.
Well overdue for an announcement and the longer it takes the further the sp will fall as with the likes of Aut these stocks are driven by positive updates and if they dont come forth buyers & interest wanes. 28c.


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## jancha (14 October 2010)

jancha said:


> They say no news is good news but in this case Sdajii i think the opposite.
> Well overdue for an announcement and the longer it takes the further the sp will fall as with the likes of Aut these stocks are driven by positive updates and if they dont come forth buyers & interest wanes. 28c.




Announcement out but with nothing significant other than an update.
Kowalic well still having problems. Got a feeling the flow rates on this well will be exceptional once it finally gets going. Buyers seem to be losing interest in the meantime. Low trading 29.5c currently.


EKA, “Company” or “Eureka)
ASX RELEASE
14 October 2010
OPERATIONS UPDATE: SUGARLOAF AMI (EKA 6.25% Working Interest)
May -1H
This well has now been drilled and cemented at a final depth of 17,550 ft, providing ~5,000 ft of horizontal section within the reservoir. The well will be fracture stimulated in due course, in a similar fashion to other Sugarloaf wells. This is the third post farmout well within the Sugarloaf AMI in which Eureka has participated.
Urrutia -1H
This well has been drilled to a final depth of 17,411 ft. Preparations are presently underway to run and cement casing which will secure ~5,000 ft of horizontal section within the reservoir. This is the fourth farmout well for Eureka which will also be fracture stimulated in due course.
Direct Assets -1H
The fifth post farmout well within the Sugarloaf AMI. Direct Assets #1H was spudded on the 30th September 2010 and is presently starting to drill the horizontal section of the well.
Kowalik -1R
Fracture stimulation of the Kowalik #1R well was suspended following damage to the casing at a depth of ~7,500 ft. A remedial repair is planned for the damaged casing after which the well will be produced to sales from the 14 fracture stimulation stages that had already been completed. Eureka will provide the market with an update when the well has cleaned up.
Luna #1H
As reported previously, the second post farmout well, Luna -1H was drilled to a depth of 17,370 ft, providing 5,000 ft of horizontal section within the reservoir. The well will also be fracture stimulated in due course.


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## barney (26 October 2010)

jancha said:


> They say no news is good news but in this case Sdajii i think the opposite.
> Well overdue for an announcement and the longer it takes the further the sp will fall as with the likes of Aut these stocks are driven by positive updates and if they dont come forth buyers & interest wanes. 28c.




Update today with things ticking along as expected.

When we have Directors continuing to buy on market it certainly gives some confidence to the future of the Company .... latest Director purchase of about $40,000 of shares bought at 28 cents.  Looks good to me.


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## jancha (4 November 2010)

Sdajii said:


> We must be overdue for an announcement; it's unusual for them to leave it this long without any word on what's going on. Given that one of the directors just topped up reasonably substantially at around 30c and we are presumably just about to get an update, the current moment seems an excellent time to jump in or buy some more.




Sdajii You possibly could jump in and buy some more @ .26c again!! Sell the car. lol
EKA seems to be the ugly sister of AUT. 
Going by Nioki's ratio of 4.2.
With AUT on $1.30 Eka should be .31c 
Buyers are drying up again also and little interest. Imo this is a news driven stock and if there's no news for a lengthy period it trends down.
Aut's latest news however has effected Eka's price in a negative way even tho the C/R has nothing to do with them.
Another buying opportunity?


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## Sdajii (4 November 2010)

jancha said:


> Sdajii You possibly could jump in and buy some more @ .26c again!! Sell the car. lol
> EKA seems to be the ugly sister of AUT.
> Going by Nioki's ratio of 4.2.
> With AUT on $1.30 Eka should be .31c
> ...




You're not wrong, jancha! I put every spare dollar I had into AUT at $1.2x during this capital raising episode, so don't have anything spare right now, but if EKA doesn't move up within another two or three weeks I'll be topping up again.


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## jancha (4 November 2010)

Sdajii said:


> You're not wrong, jancha! I put every spare dollar I had into AUT at $1.2x during this capital raising episode, so don't have anything spare right now, but if EKA doesn't move up within another two or three weeks I'll be topping up again.




Maybe thats why EKA have dropped in price. Share holders of EKA selling in order to buy into AUT at cheap price?
If thats the case with AUT back up to $1.35 EKA may start to head back as the reverse takes place.


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## barney (6 November 2010)

The timing of the Trading Halt yesterday wasn't great considering the rise on the broader market. Would have been no surprise to see it break the 30 cent barrier .... such is life.

EKA presentation looks good. Conservative value of 40 cents on the shares, with an upside of $1.04 into the future assuming reserves are proven.

How much capital will they raise and at what price?  

If they go for a 100% 5 day VWRAP .... around 28 cents, which is fine. If they go 80% of 5 day VWRAP could be 23 cents which would be a poor result.  You'd think with the recent buying by the Directors at around 29 cents would indicate the higher level is more likely, and considering the presentation material spruiking potentially 40+ they should be trying to raise cash at a premium. Lets hope they don't do an "ADI"

They have $2.8 million in cash ...have paid the drilling costs on all the current wells, but not the completion costs on MAY and URUTIA.

They have to drill a minimum of 8 new wells next year to secure the acreage, but are looking to drill 12 .... One per month would be excellent.

Round figures, say $800,000 costs per well for next year X 12 = $9.6 million required.  They may issue around 35 million shares if they want to cover next years expenses in one go, which would make sense.

If the numbers in the Presentation report stack up, this is looking like a solid low risk medium term buy at the current SP .... If it gets a bit of a hit due to the CR, it could present some value buying, but I reckon the window of opportunity might be fairly narrow


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## gsnz1 (7 November 2010)

i read on another forum that it is to SI's at 0.25 to raise $5m. Not sure if its gospel, we'll have to wait for announcement. $5m should pay for some wells into 2011


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## barney (7 November 2010)

gsnz1 said:


> i read on another forum that it is to SI's at 0.25 to raise $5m. Not sure if its gospel, we'll have to wait for announcement. $5m should pay for some wells into 2011




Hi GSNZ1,

I haven't seen any "market" information on the CR price yet, and the trading halt indicated that the info would be available by next tuesday, but if it is 25 cents, I would be personally a bit miffed as a shareholder, considering the Companies Presentation to accompany the announcement.

If they offer 25 cents to the sophistos and not the loyal S/H's, there may well be a short term backlash in my view .... then again, if its only for $5 million, that may be acceptable to tide them over till they become cash flow positive .......... 

Personally, I think the long termers would have been more than happy to top up at 25 ... so unless its a substantial CR to instos for a valid reason (ie. to fund the next 12 months drilling obligations) I reckon the management will get a "royal rasberry" for a week or two   ... You would like to think they had learned something from the ADI stuff up 

We shall see on tuesday ......


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## gsnz1 (7 November 2010)

barney said:


> Hi GSNZ1,
> 
> I haven't seen any "market" information on the CR price yet, and the trading halt indicated that the info would be available by next tuesday, but if it is 25 cents, I would be personally a bit miffed as a shareholder, considering the Companies Presentation to accompany the announcement.
> 
> ...




I agree and I, along with many others, would be topping up at 25 if given the opportunity.  I did get a few more at 26c although i dont hold a huge amount. I hope they do give us a crack at the CR. I think they will go to instos and tell us that due to time constraints, market opportunities, the alignment of the 12th moon of Uranus etc that they are unable to offer these to shareholders but they will make it up to us next time :

Seriously, they did not get a full take up in previous CR and a good parcel went to the underwriters so they would be taking that into account. I just hope they dont give them all to AWE.

That being said, they are expanding acreage, soon to be cashflow positive and the more the price of oil goes up the sooner we will be cashflow positive. Must be seriously close to paying out Hilcorp now.

All in all the long term picture is looking the same, just a small side step for now in the overall scheme of things


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## Huitzii (8 November 2010)

If im wrong here im sure that I will be corrected but im quite sure that under the ASX rules only 1 capitol raising can be done in a 12 month period to general shareholders, which has already happened in this period.
This would mean that the only way to raise more money is through sophisticated shareholders.
My


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## nioka (8 November 2010)

Huitzii said:


> If im wrong here im sure that I will be corrected but im quite sure that under the ASX rules only 1 capitol raising can be done in a 12 month period to general shareholders, which has already happened in this period.
> This would mean that the only way to raise more money is through sophisticated shareholders.
> My




A second cap raising can be done but it requires a vote in favour at a meeting of shareholders to do it. Seeing that the annual meeting has yet to be held then this is a possibility. We will find out tomorrow. In the meantime if there is any insider info then it must be good as the indicative price is showing an improvement. Remember the directors have skin in the game too so that will be in our favour and there was a director buying recently so I doubt if he would want costly dilution.

I live in hope.


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## barney (8 November 2010)

gsnz1 said:


> . I just hope they dont give them all to AWE.




  Evil thoughts  




nioka said:


> Remember the directors have skin in the game too so that will be in our favour and there was a director buying recently so I doubt if he would want costly dilution.




Absolutely Nioka.  It looks a good trump card to be holding at the moment. Be very dissappointing if they offer this at less than 28 cents imo, and if they have sold it properly, they really should be getting a premium.

I don't mind if they issue 35-40 million shares to the instos at 28-29 cents, if they use the cash wisely ..... eg. Lets hope they announce some positive development arrangements for the new lease as well ...... and at a "productive" farm in percentage !! ... Its a big opportunity to turn the Company into something substantial if they get the numbers right.


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## barney (9 November 2010)

Interesting that they hadn't dotted the "I" s and crossed the "T" s with the Cap Raise ..... Doubt that it will be for only $5 million 

I hope that after seeing the markets reaction on AUT today, that the EKA management take a leaf out of their book, and keep the Lions share of their new acreage. Huge potential if it turns out productive!


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## jancha (10 November 2010)

C/R to sophisticated investors @ 25c!!!
Here we go again same ADI.
If there's a time factor with these C/Rs why dont the management have the foresight and let all of the share holders have a crack at picking them up at 25c?
No wonder it was oversubscribed!!


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## Assasin (10 November 2010)

jancha said:


> C/R to sophisticated investors @ 25c!!!
> Here we go again same ADI.
> If there's a time factor with these C/Rs why dont the management have the foresight and let all of the share holders have a crack at picking them up at 25c?
> No wonder it was oversubscribed!!




Stand by Jancha,
      The sp will probably retrace back to close to if not .25


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## barney (10 November 2010)

jancha said:


> C/R to sophisticated investors @ 25c!!!
> Here we go again same ADI.
> If there's a time factor with these C/Rs why dont the management have the foresight and let all of the share holders have a crack at picking them up at 25c?
> No wonder it was oversubscribed!!




Agree Jancha ..... Poor effort by management.

I notice "Hodgy" over saw the last Presentation (and probably got paid a pretty penny for it) so the ADI connection is alive and well ..... looks like money for the boys


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## jancha (10 November 2010)

Assasin said:


> Stand by Jancha,
> The sp will probably retrace back to close to if not .25




Dont think it will go down quite that low as that but none the less down she'll go.    
 So does that mean every time they have a C/R the so called sophisticated investors get to make a profit while we miss out?
Note that AUT did the same tho and did touch on their C/R price of $1.25.
Dont think EKA will go that low tho. Just look at AUTs current price of $1.61!!
But if EKA should happen to fall that low i'll be buying more.


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## AngusSmart (10 November 2010)

my buys in at 25c

lets see how low it can go! we all knew it wasnt going to be for us! hopefully someones going to take the over soon i need a quick double!

and RE: the capital is for sugarloaf/general running costs.. nothing to do with their other area...

so expect some more capital raising in the future!


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## jancha (10 November 2010)

AngusSmart said:


> my buys in at 25c
> 
> lets see how low it can go! we all knew it wasnt going to be for us! hopefully someones going to take the over soon i need a quick double!
> 
> ...




There will definately more C/R and each time it happens guess who makes a 15% profit on their new shares?
As i said before where's the foresight if it's a time factor in these raisings.
Bad luck to little investors that have been loyal & holding over the years.


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## ParleVouFrancois (10 November 2010)

If you dislike EKA so much and their constant CR, you always can invest in other companies in the same section of the economy. Or even crazier is you can invest in AUT, which is pretty much EKA with a bigger share in the Sugarkane field etc, almost the same assets but better management imo.


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## lemontree (10 November 2010)

Don't understand why the price hasn't dropped to ~25c given the nature of the capital raising. SP went the opposite way instead. Any thoughts?


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## jancha (11 November 2010)

EKAs volume up (1.5mil) and surprisingly the sp with it.
Unlike AUT which actually went down to the C/R offer of $1.25 the other week before rebounding to a new high of $1.67. Currently $1.55.
Maybe it's just a catch up to AUT while EKA was in it's trading halt.

Hopefully they'll come back down with some of these sophisticated investors taking a profit & giving us a bite of the cherry.
Be nice to pick some more up at 25c!

PVF  Why is AUTs management any better?


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## Harvestar (24 November 2010)

Anyone have any updates on yesterday's positive announcement?

Why would such news have a negative impact on the SP?


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## nioka (24 November 2010)

Eka is suffering from "disappointed long term holder syndrome" as a result of handing out a cheap cap raising to short term investors that are more sophisticated than their loyal long termers. It will now take news of value in the new leases to shake that disease which has been a confidence destroyer.

( Sophisticated means "in it for a quick quid regardless")


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## Assasin (26 November 2010)

Well hopefully retrace is complete with it coming back to 26c as predicted. Hope everyone topped up. Now, 2 weeks since CR, market seems to have settled down and starting to respond to recent good news. (see announcements)
The fundamentals of EKA have been strengthened up and all is set for a huge 2011. IMO
Good luck to all holders.


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## jancha (3 December 2010)

nioka said:


> Eka is suffering from "disappointed long term holder syndrome" as a result of handing out a cheap cap raising to short term investors that are more sophisticated than their loyal long termers. It will now take news of value in the new leases to shake that disease which has been a confidence destroyer.
> 
> ( Sophisticated means "in it for a quick quid regardless")




Looks that way nioka.
Sold out of AUT buying into EKA thinking that the value buy was with them.
Been disappointing to watch AUT rise up to a new high of $1.69 while EKA lamments on around 28c.
Going by the old ratio they should around 40c!
I think investors are moving more into AUT as a better long term play while as you say the confidence has dropped in EKA.


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## nioka (3 December 2010)

jancha said:


> Looks that way nioka.
> Sold out of AUT buying into EKA thinking that the value buy was with them.
> Been disappointing to watch AUT rise up to a new high of $1.69 while EKA lamments on around 28c.
> Going by the old ratio they should around 40c!
> I think investors are moving more into AUT as a better long term play while as you say the confidence has dropped in EKA.




EKA is certainly lagging now. Particularly today with AUT getting a real boost. However EKA must be due for an announcement that could improve the situation. It is quite awhile since an update. 

According to my calculations the payback to Hillcorp in line with the farmin operations must be completed. This means that EKA should now be getting a steady incoming cash flow. They should have an announcement along those lines any time now. Also we are due for some news as to where the money they so urgently needed for aquisitions of leases has been spent. They couldn't wait the time necessary to offer the discounted share placement to shareholders so they should be announcing where that money has been spent.

I'm not a happy holder. Have sold some AUT and EKA for TXN lately but capital gains tax means I have to hold EKA for some months yet.


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## Sdajii (3 December 2010)

I'm still a happy holder of EKA. If you wanted some cheap shares, you had the opportunity to get some. I bought some more just last week for 26c. As long as they are using the money for something good, it will help the company which helps the shareholders so I'm all for it. If it means they're sitting undervalued in the mean time it just means I have longer to buy bargains before they jump up to where they should be. If not for the CGT issue I'd be piling a heap of my AUT into EKA right now, but by my standards I already have a heap of EKA so I'm content. I don't particularly care if it's a week or a month or six months before EKA has another run, but we're all set for one, clearly, looking at how undervalued EKA is relative to AUT, and waiting for two big announcements (cash flow positive and whatever the other one will be, probably land acquisitions, which they're being quiet about to avoid screwing themselves/us before it's finalised).

All looks very rosy to me


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## Assasin (3 December 2010)

Sorry guys, don't want to but I have to disagree.

I can understand your disappointment especially after selling down AUT and putting into EKA and I think thats what's driving your thinking.

I know you were dissapointed with not being included in recent CR but as expected we were all able to buy in close to CR price ( 25c CR- 26c retrace ).

Now, I believe the fundamentals are stronger for EKA and good news is starting to flow. With AUT ploughing away ahead surely EKA with a similar business model and product will follow in it's wake.
It's also a perfect TO target, not that we want that.

I too have trouble with patience but we just need a little. I'm confident of a very prosperous next 6 months for EKA


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## Assasin (3 December 2010)

Just curios, and I don't want to get to personel but what is the thinking behind selling AUT to buy others taking into account the news AUT is coming out with and the next growth targets it's showing.
I'm not trying to be smart here- just learning.


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## Sdajii (3 December 2010)

Assasin said:


> Just curios, and I don't want to get to personel but what is the thinking behind selling AUT to buy others taking into account the news AUT is coming out with and the next growth targets it's showing.
> I'm not trying to be smart here- just learning.




AUT is looking great, I think it's a good buy, but EKA is undervalued relative to it, in my opinion. So, it would make sense at this point to sell some AUT and use it to buy EKA, if you didn't have the money to just buy more EKA while holding your AUT.


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## happytown (3 December 2010)

aut is being admitted to the asx200 by s&p

this will help drive the aut sp in the near future as asx200 funds acquire the appropraite weighting in aut

it should follow that the previous aut:eka ratio adjusts to reflect this


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## nioka (3 December 2010)

Assasin said:


> Just curios, and I don't want to get to personel but what is the thinking behind selling AUT to buy others taking into account the news AUT is coming out with and the next growth targets it's showing.
> I'm not trying to be smart here- just learning.




For years now I have "swap" traded between AUT, EKA and ADI as the relative prices changed. That has been highly profitable. (I have posted  some of those trades over the years to back up my statements that were the subject to some doubting criticism.)

Starting out with 5000 ADI and ending up with over a million ADI and some EKA and AUT. When ADI was taken over I invested half the ADI proceeds into equal roughly parts AUT and EKA and continued to trade between those two. Lately I have included TXN into the equation. 

EKA has usually lagged behind but finally catching up on a relative value basis. To catch up now EKA needs to come up with some good news on two fronts. Firstly on an update on income from Sugarloaf. Secondly on news that it has good prospects for income from new lease areas.


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## yma (3 December 2010)

These days AUT and SEA are performing good, this make EKA a bit out of popular, it the SP remain in the current level it might become a good take over target.


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## jancha (3 December 2010)

yma said:


> These days AUT and SEA are performing good, this make EKA a bit out of popular, it the SP remain in the current level it might become a good take over target.




I tend to agree with you but unlike ADI EKA doesn't have the likes of AWE holding 33% of their shares so any form of take T/O would have different consequences imo.
Any T/O would imo wouldn't be taken so lightly as ADI.


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## Kremmen (3 December 2010)

happytown said:


> aut is being admitted to the asx200 by s&p
> 
> this will help drive the aut sp in the near future as asx200 funds acquire the appropraite weighting in aut
> 
> it should follow that the previous aut:eka ratio adjusts to reflect this




It should just be a short-term blip, but I don't know how short. I wonder how quickly those index funds respond to ASX200 weighting changes?

Anyhow, what it means is that the AUT buyers are simply paying a premium for being in the ASX200, which should make other, similar stocks relatively more attractive.


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## jancha (3 December 2010)

Kremmen said:


> It should just be a short-term blip, but I don't know how short. I wonder how quickly those index funds respond to ASX200 weighting changes?
> 
> Anyhow, what it means is that the AUT buyers are simply paying a premium for being in the ASX200, which should make other, similar stocks relatively more attractive.




Thats why i wouldn't jump ship atm as i have in the past between the two. I don't quite follow why the interest in EKA over the last few months has waned but i think the value is even more prominent now. EKA imo has a bigger upside than AUT with the current sp as it stands.


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## yma (9 December 2010)

very big volume today with no share price difference so far, any idea? good day coming soon i guess...


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## nioka (9 December 2010)

yma said:


> very big volume today with no share price difference so far, any idea? good day coming soon i guess...




It's hard to work out today's trading. I would have expected that volume like today would have caused a fair change in the SP one way or another. A drop for a sudden sell in volume or a spike for sudden demand. So maybe we have had both at the same time with one offsetting the other. Probably it is a seller that has been waiting for demand to increase so they could sell at a profit without crashing the price. If so then how many have they left to sell?.  I certainly want more than 30c for mine.


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## Sdajii (9 December 2010)

nioka said:


> It's hard to work out today's trading.




I'm just some faceless idiot from the internet with a near worthless opinion, but my guess is that there is someone sitting there patiently wanting to sell out, willing to take prices around what we're seeing, and they may have been there quietly for some time, and someone else, or maybe a few people have started wanting to accumulate, thus buying out the seller, or maybe sellers. Once the seller(s) dry up we might see a run, which is what you'd expect with a 6:1 EKA:AUT ratio.

As I said, I'm just some inconsequential internet personality carrying little credibility and I could be completely wrong.


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## yma (9 December 2010)

The share price for AUT for the last 6 months has increased by 117.26% and 39.53% for EKA, the price gap is getting larger from Sep 2010 till now, AUT is doing really well and hopefully EKA will do a catch up soon.


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## Assasin (11 December 2010)

With AUT's recent news, am I wrong in thinking this may take a few buyers away from EKA?


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## Sharejon (11 December 2010)

We'll see I guess. I wouldn't think it'd have a major effect on EKA. EKA have stated that they have intentions to purchase more land.

The fundamentals and the current results are too good for the current EKA valuation imo. With 4 wells due within the next 4-5 weeks or so, our production should increase from 480 boepd, to 750ish. This will bring a re-rating, I'll assume to 40c. If this assumption proves to be correct (40c in roughly 6 weeks) then I'd like EKA to do a cap raising at 35c (to us shareholders, not this sophisticated rubbish) and purchase some more acreage.

We bought our last block of land in the Eagleford Region, 761.5 acres (Oil Fairway) for $821,500 + 900,000 EKA shares. At the time (20th of August) EKA closed at $0.29, so let's say that we purchased the land for 1.0825 million. That's equal to $1421.5/acre. How cheap is that!

By March/April next year EKA is aiming to have 18 wells producing (currently 7), so once this occurs it'd be good to have even more acreage in our portfolio, for the future. By that time, at 1100+ boepd and a positive cashflow (in the sense that our Hilcorp expenses have been paid off) we'll have some nice revenue flow which will be great for the expansion of Eureka.


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## Sharejon (11 December 2010)

Personally, I believe that we could  be 40c + within a few weeks if the completed wells come good.

At that stage I'd actually like EKA to have a SPP 5c below the current share price to fund some more land acquisitions. 

I think it'd be wise to wait until the SP hits 40c, because we recently had a sophisticated cap raising at 30c, and even more dilution at the same price could spell desperation to some investors. Even though it'd be a positive thing for the company imo.


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## Assasin (11 December 2010)

Cheers Sharejon
That certainly would be cheap but I don't think it's achievable considering what AUT just paid. I know it's appples verses oranges but it's got to be relative. 
Not suggesting that it be any where near 24k per acre though, but that sure sets a benchmark in the region and just might cause a few to stand up and listen. Could change a few strategies.
Absolutely agree with you on a re-rating.


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## adobee (13 December 2010)

EKA still sitting cheap whilst the rest of the players move forward.. SEA, AUT, TXN, .. considering what AUT has just paid for more acerage I think EKA would look like a very cheap takeover with immediate cashflows... Jumping on board for anything  below or equal to 29c ....


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## philly (13 December 2010)

adobee said:


> EKA still sitting cheap whilst the rest of the players move forward.. SEA, AUT, TXN, .. considering what AUT has just paid for more acerage I think EKA would look like a very cheap takeover with immediate cashflows... Jumping on board for anything  below or equal to 29c ....




yeah I reckon that you are spot on adobee, this one is a sleeper whilst the others move forward. It is a good buy at this price and I note that on 9/12/10 director Mark Wilson purchased 800,000 more shares. I expect there could be a run on this shortly as investors look for a cheap entry point to enjoy the success of the Eagle Ford


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## Sdajii (13 December 2010)

philly said:


> yeah I reckon that you are spot on adobee, this one is a sleeper whilst the others move forward. It is a good buy at this price and I note that on 9/12/10 director Mark Wilson purchased 800,000 more shares. I expect there could be a run on this shortly as investors look for a cheap entry point to enjoy the success of the Eagle Ford




800,000 shares at 30 or 30.5c from a director, on market. A pretty good endorsement! I heard on poor authority that it would have been cheaper per acre to obtain land by buying EKA than what AUT has just done. Can anyone confirm that? If it's true, EKA is absurdly undervalued and an obvious takeover target. My calculations say that taking over EKA would have been a smaller move than the recent AUT acquisition.


----------



## philly (13 December 2010)

Sdajii said:


> I heard on poor authority that it would have been cheaper per acre to obtain land by buying EKA than what AUT has just done.  My calculations say that taking over EKA would have been a smaller move than the recent AUT acquisition.




Takeovers can be costly, messy and drawn out affairs. For example look at ADI and there AWE already had a 30% interest before making its bid and it had Board support.
The deal that AUT was able to achieve is simple because it adds to its existing proven interests in the Sugarkane.  So no fuss involved. It also gets new exposure to the nearby Excelsior field. The deal is backdated to 1/12/10 so AUT gets the benefit [revenue] from the extra production immediately.

Whilst AUT may not have been interested in a takeover of EKA that is not to say that if it remains at this price it will be vulnerable


----------



## Sdajii (13 December 2010)

philly said:


> Takeovers can be costly, messy and drawn out affairs. For example look at ADI and there AWE already had a 30% interest before making its bid and it had Board support.
> The deal that AUT was able to achieve is simple because it adds to its existing proven interests in the Sugarkane.  So no fuss involved. It also gets new exposure to the nearby Excelsior field. The deal is backdated to 1/12/10 so AUT gets the benefit [revenue] from the extra production immediately.
> 
> Whilst AUT may not have been interested in a takeover of EKA that is not to say that if it remains at this price it will be vulnerable




Those are some good points, and that explains why AUT might have done what they did without buying EKA first (as well as the fact that people may dislike a company exhibiting such hostility). But even so, if a company like AUT is delightfully gobbling up land and wells at a price greater than EKA's relative market cap, surely that screams out that EKA is heavily undervalued... which I suppose is what lots of people are already saying here for several reasons. It's just another demonstration of it, I suppose.

Happy to be holding and expecting a run before long


----------



## chiasm (15 December 2010)

Great day for AUT and it looks like EKA went along for a ride as well. Lets hope it keeps going!


----------



## adobee (16 December 2010)

Looks like a few buyers stacking up..  directors buying up, other companies buying up as much land as they can get there hands on in the area, big buyer at 30c, things are looking good !


----------



## jancha (16 December 2010)

adobee said:


> Looks like a few buyers stacking up..  directors buying up, other companies buying up as much land as they can get there hands on in the area, big buyer at 30c, things are looking good !




Still lagging well behind AUT abobee.
It appears everytime EKA gets some momentum impatient holders come in and pull it back.
Needs some positive news to get it past that 35c mark.
Well undervalued imo.


----------



## WRONG'UN (16 December 2010)

AUK EKA relationship chart, also posted on AUT thread.

.......................................................


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## Assasin (23 December 2010)

Struggling to show patience with this one. Buyers verses sellers look strong and yet the sp doesn't move and very little volume.
Might try a bit of Noika strategy and shift to AUT which is on a low.


----------



## nioka (23 December 2010)

Assasin said:


> Struggling to show patience with this one. Buyers verses sellers look strong and yet the sp doesn't move and very little volume.
> Might try a bit of Noika strategy and shift to AUT which is on a low.




Have I got it wrong? I've just gone the other way. AUT to EKA. Must admit that I got in before AUT fell and EKA rose a little. They haven't changed enough to go back yet in my opinion.


----------



## Assasin (25 December 2010)

nioka said:


> Have I got it wrong? I've just gone the other way. AUT to EKA. Must admit that I got in before AUT fell and EKA rose a little. They haven't changed enough to go back yet in my opinion.




Well Noika lets see.
   I'm doing the experiment with 10k. So, dropped 10k of EKA at .32 and grabbed AUT at 2.05. To make it viable, I want 20% growth so it's a race between Aut making 2.46 and EKA going to 38.5. 
  I have no idea how this will go as both have pros ands cons in this race and AUT may have a few fluctuations along the way with the 2nd tranch of funding happening which may be another opportunity.
 As I've mentioned before, I think in the med/long term we may be talking about the one stock anyway.
Back to the turkey. Merry Christmas.:chimney


----------



## jancha (10 January 2011)

Assasin said:


> Well Noika lets see.
> I'm doing the experiment with 10k. So, dropped 10k of EKA at .32 and grabbed AUT at 2.05. To make it viable, I want 20% growth so it's a race between Aut making 2.46 and EKA going to 38.5.
> I have no idea how this will go as both have pros ands cons in this race and AUT may have a few fluctuations along the way with the 2nd tranch of funding happening which may be another opportunity.
> As I've mentioned before, I think in the med/long term we may be talking about the one stock anyway.
> Back to the turkey. Merry Christmas.:chimney




Assasin..  Looks like Aut is going to win that race. Sitting on $2.42 while Eka 34c atm.
Think you maybe correct in saying that in the long run it being the one stock.
Cant see Eka sitting around at it's current sp without a takeover happening.


----------



## nioka (10 January 2011)

jancha said:


> Assasin..  Looks like Aut is going to win that race. Sitting on $2.42 while Eka 34c atm.
> Think you maybe correct in saying that in the long run it being the one stock.
> Cant see Eka sitting around at it's current sp without a takeover happening.




Without a doubt AUT are winning hands down at this stage. However I am still buying EKA. One of these days I'll sell AUT to get the outlay back. EKA is suffering from the "no news syndrone". The treatment will be the next quartley results due soon.

Take a lesson from the weather. It always rains at the end of a dry spell and a drought is usually broken by a flood.


----------



## majorca (10 January 2011)

nioka,
        how right you are just as a "200ft mountain ash grow's from a small seed" except sometimes that seed grows into black wattle???? Time will tell I have a bet each way at the moment I believe both will profit by how much time will tell, the one thing I strongly believe is they are both as close as can be to sure things now. It is good that everyone's discussing what has the most upside without anyone thinking for a second there could be a downside amazing the difference in a year! Anyway that's my two bob.


----------



## WRONG'UN (10 January 2011)

Update of the AUT/EKA relationship, as seen by PairTrade Finder. While AUT is still in a strong uptrend relative to EKA, where the relationship is going next is anyone's guess.


----------



## chiasm (10 January 2011)

Something going on with EKA today. Buy sell ratio looking a little healthier and the price moving up a little. I've been waiting a while for EKA to move up, could this be it???


----------



## adobee (10 January 2011)

somethings up.. 

I was looking this morning at there was a fair bit of resistance of about 500,000 shares and 200,000 shares..  (was similar amount on buy side round 32c..) thought they may have been trying to to up below this big order.. but its either pulled or better looks to have been eaten up.. really strong buy side now.. plus good support still round 32c.. I think 36c is  abreak out.. lets hope it closes higher.. I have been buying last month with expectations of 42c+ as I think its really lagging behind...


----------



## adobee (10 January 2011)

just turned around again.. 

fingers crossed runs at the close...


----------



## Sdajii (10 January 2011)

I had to get up from my desk for an hour or so. I was pleasantly surprised to come back to this beautiful sight!


----------



## nioka (10 January 2011)

Well we did get to 12 month high today. Didn't hold it but ended up nicely for the day. The start of the revival could be upon us. Good volume traded shows interest. Maybe there is something in the wind.


----------



## Huitzii (10 January 2011)

My 
Personally I like to buy on a low volume green bar with breakout criteria being satisfied.
Today's chart I have seen too many times and I believe EKA will see a few days of consolidation and drying up of sellers .
I think that my chart explains it in a reasonable fashion of my views and thoughts.
Good luck to all EKA holders.
DYOR


----------



## Sdajii (10 January 2011)

You can play technical analysis all you like (and yes, if you do it well in the right way it can make you rich), but if we don't have a run sometime in the not too distant future the fundamentals are going to catch up with us, we're going to be taken over and we'll have profits forced on us.


----------



## tech/a (10 January 2011)

Huitzii said:


> My
> Personally I like to buy on a low volume green bar with breakout criteria being satisfied.
> Today's chart I have seen too many times and I believe EKA will see a few days of consolidation and drying up of sellers .
> I think that my chart explains it in a reasonable fashion of my views and thoughts.
> ...




Interesting analysis.


----------



## Sharejon (11 January 2011)

It's nice to see EKA sitting at yesterday's high, and judging by a long-term chart, the highest it's been for 2.5 years.

I would be happy for this to consolidate, before the next leg up with more production updates and the quarterly report due sometime this month, I believe.


----------



## adobee (11 January 2011)

Sharejon said:


> It's nice to see EKA sitting at yesterday's high, and judging by a long-term chart, the highest it's been for 2.5 years.
> 
> I would be happy for this to consolidate, before the next leg up with more production updates and the quarterly report due sometime this month, I believe.




I would be happy for it to keep going upwards ! IMO 40c should be achieved and new trading range in 40-44c range.. this is just my opinion..


----------



## zzaaxxss3401 (11 January 2011)

adobee said:


> I would be happy for it to keep going upwards ! IMO 40c should be achieved and new trading range in 40-44c range.. this is just my opinion..



Been looking at a recent chart and it's formed a nice wedge (even with the small break-out yesterday). I'm expecting it to close pretty flat today (at either 35.5c or 36c) but to break-out higher by the end of the week.


----------



## adobee (11 January 2011)

*Any of the locals or wise able to give any opinion on the extra acerage AKM got last year :*

"761.5 acre km block of leases on the eastern extension of the Eagle Ford trend, some 90 miles 150km north-east of Eureka’s producing Eagle Ford Shale-Austin Chalk interest in the Sugarloaf Project. "Magueyitos acreage in Fayette County"

Consideration for the lease interests was US$821,500 in cash and 900,000 new fully paid ordinary shares. The lease block is located in Fayette County, south of the major producing Giddings Oil Field and west of Apache Corporation’s extensive Eagle Ford Shale lease holdings.

In the agm docs they talk about 761acre and 761sq km.. i am assuming acres ?


----------



## Magic Man (12 January 2011)

Hey there,,

Ive noticed this stock starting to wake up the last few days.. Can anyone come up with a big reason as to why someone should jump into this stock?


----------



## adobee (12 January 2011)

Magic Man said:


> Hey there,,
> 
> Ive noticed this stock starting to wake up the last few days.. Can anyone come up with a big reason as to why someone should jump into this stock?




I dont know but I am hopeful that:

Maybe they are going to release financials saying they are cash flow positive
Maybe AWE is deciding to take over or increase its holdings
Maybe they have drilled / explored Fayette County and oil is seeping through the surface soil..
Maybe they are just running on the back of the other AMI partners
Maybe China wants to own all of the EFS
Maybe its just a pump


----------



## toocool (12 January 2011)

Magic Man said:


> Hey there,,
> 
> Ive noticed this stock starting to wake up the last few days.. Can anyone come up with a big reason as to why someone should jump into this stock?




Just read back through the thread and you will find out.... and maybe the AUT one as well.


----------



## howmanyru (12 January 2011)

Hi All,

I am out at 40c today, if it makes it. Have traded this stock 3 times in the last few months, buying on dips, selling on highs. Think 39 or 40c will be max for today - bought at 31c. AUT seems too hot, but I wish I had of bought it a while back. 
PS fantastic web site and great info here.


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## Sdajii (12 January 2011)

howmanyru said:


> Hi All,
> 
> I am out at 40c today, if it makes it. Have traded this stock 3 times in the last few months, buying on dips, selling on highs. Think 39 or 40c will be max for today - bought at 31c. AUT seems too hot, but I wish I had of bought it a while back.
> PS fantastic web site and great info here.




That's impressive, considering it hasn't traded at 40c today (or any time in the last 52 weeks).

Interesting first post of yours...


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## nioka (12 January 2011)

Sdajii said:


> That's impressive, considering it hasn't traded at 40c today (or any time in the last 52 weeks).
> 
> Interesting first post of yours...




My first impression but then I reread and saw "if it makes it".It hasn't.


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## adobee (12 January 2011)

The more I have been reading up on EKA the more this is my preferred stock, I have actually bought more this morning have an average price now around 36c..  I wont be selling short term at all ..


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## Sdajii (12 January 2011)

Oh, stupid me! Thank you, nioka. Apologies, howmanyru! 

I initially bought in around 10c, I've topped up several times since then, average entry in the low 20s. I have done a little bit of trading in and out. My average buy is probably something closer to 15c, but I've sold the original ones and the average of what I'm now holding was bought more recently. I've held what I have long enough now for me to be looking at hanging on for the 12 months.


----------



## Sharejon (12 January 2011)

My average is 17 cents, or something around that figure. I bought most my shares at 15c, then participated in the 1 per 6 SPP at 17.5 cents (i believe), then bought a few more at 28 cents. The 12 months CGT period for the majority of my shares comes to a close in march I believe.

I'm undecided on what I'll do. Alot of it will depend on EKA's intentions for increasing their assets. AUT has recently proven that smart acquisition through dilution can increase the value of each share and I'm hoping EKA can do the same.

Adobee, Magueyitos is 765 acres.


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## Harvestar (12 January 2011)

Disappointing close after this morning's postive signs of a high of 39.5c.

Does anyone know exactly when the next set of financial results will be released by the company?


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## nioka (12 January 2011)

Harvestar said:


> Disappointing close after this morning's postive signs of a high of 39.5c.
> 
> Does anyone know exactly when the next set of financial results will be released by the company?




The next report will be the quarterly which is due out towards the end of this month. More important than the financials will be an announcement that income is coming in from sales. Hopefully an announcement that EKA is now cash flow positive or at least nearing that point.


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## Assasin (13 January 2011)

Assasin said:


> Well Noika lets see.
> I'm doing the experiment with 10k. So, dropped 10k of EKA at .32 and grabbed AUT at 2.05. To make it viable, I want 20% growth so it's a race between Aut making 2.46 and EKA going to 38.5.
> I have no idea how this will go as both have pros ands cons in this race and AUT may have a few fluctuations along the way with the 2nd tranch of funding happening which may be another opportunity.
> As I've mentioned before, I think in the med/long term we may be talking about the one stock anyway.
> Back to the turkey. Merry Christmas.:chimney




Been away and have come back to strong positives on both stocks. Aut has been staggeringly good.
I think now is a good time to swap this original amount back and pay for a holiday with the profit.
I also concur that EKA is a bit of a sitting duck at the moment. Either get your business plan happening or get taken over.
Will be interesting to watch.


----------



## bennywizard (13 January 2011)

*potential take over tax implications*

Like many others I see EKA as undervalued and therefore a take over target, please excuse this basic question but as I understand it if a company is taken over and you have held the stock for less than 12 months you pay 50% capital gains tax...if held for 12 months plus its 25%.

But, what happens for instance if EKA is taken over by AUT...and you keep the new AUT shares...have you still "sold" your EKA and need to pay the CGT or are the new shares classified as AUT sncehares held for as long as you held the original EKA?

I am just using this scenario as an hypothetical example, not suggesting it will happen...although I would be very happy if it did. (I hold AUT and EKA)

I am guessing most people who held ADI would have held for less than 12 months, but I learned something interesting re CGT the other day. You can be classified as both a share investor and a share trader at the same time! Very cool! This means for example that if you make a loss on a trade you can claim it as an income tax reduction, but on a share like EKA or AUT those of us holding long term can classify these as an investment and get the benefits of holding for over 12 months.
I had to register an ABN to do this but man was it worth it.


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## jancha (13 January 2011)

*Re: potential take over tax implications*



bennywizard said:


> Like many others I see EKA as undervalued and therefore a take over target, please excuse this basic question but as I understand it if a company is taken over and you have held the stock for less than 12 months you pay 50% capital gains tax...if held for 12 months plus its 25%.
> 
> But, what happens for instance if EKA is taken over by AUT...and you keep the new AUT shares...have you still "sold" your EKA and need to pay the CGT or are the new shares classified as AUT sncehares held for as long as you held the original EKA?
> 
> ...




If your trading on a regular basis and classed as a share trader to my understanding you cant be both and any long term shares will still carry the full CGT regardless of duration of holding.
At least thats what i was advised.
Anyway back to EKA better volume of late & holding @ 37c. Finally past the 35c resistence level of old but still well under valued imo.


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## Sdajii (14 January 2011)

Is anyone able to explain why there is such a glut of sellers (currently 42 sellers with a total of over a million shares on offer) at 44.5c?


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## chiasm (14 January 2011)

Nice finish to the week ending on 52 week high, up almost 18%, building up to a nice quarterly report. Next resistance point a few cents away so should be a good week coming up.


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## lemontree (17 January 2011)

Sdajii said:


> Is anyone able to explain why there is such a glut of sellers (currently 42 sellers with a total of over a million shares on offer) at 44.5c?




Might have something to do with the 42 sellers at 44.5c.


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## majorca (17 January 2011)

lemontree said:


> Might have something to do with the 42 sellers at 44.5c.




it appears the sellers are re-thinking their position this morning they are gone?


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## majorca (17 January 2011)

majorca said:


> it appears the sellers are re-thinking their position this morning they are gone?




ok cancel that comment ,looked again , I am apparently on drugs


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## jancha (17 January 2011)

majorca said:


> it appears the sellers are re-thinking their position this morning they are gone?




Still 42 sellers at 44.5c majorca.
Good part is that it's hit 40c & rising.


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## adobee (17 January 2011)

no.. the sellers are still there.. 
could this be one person trying to hold it back with many sell orders ???
seems a bit weird that 42 people are all wanting to sell at the one figure.. IMO


----------



## subi1 (17 January 2011)

adobee said:


> no.. the sellers are still there..
> could this be one person trying to hold it back with many sell orders ???
> seems a bit weird that 42 people are all wanting to sell at the one figure.. IMO




It could be a profit target for  newsletter subscribers. Seems a bit strange but that could be one explanation.


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## Kremmen (17 January 2011)

*Re: potential take over tax implications*



bennywizard said:


> But, what happens for instance if EKA is taken over by AUT...and you keep the new AUT shares...have you still "sold" your EKA and need to pay the CGT or are the new shares classified as AUT shares held for as long as you held the original EKA?




In most cases in a full takeover, you can just treat it as though you had bought the new shares at the original price. Just read the ATO's page on takeovers: http://www.ato.gov.au/individuals/content.asp?doc=/content/36712.htm .



Assasin said:


> I'm doing the experiment with 10k. So, dropped 10k of EKA at .32 and grabbed AUT at 2.05. To make it viable, I want 20% growth so it's a race between Aut making 2.46 and EKA going to 38.5.




Here's an example of why I don't bother with short-term trading. Current prices are 41c and $2.68, 28.1% and 30.7% rises respectively from those buy prices. Either is a great result, with the time required to extract a few % more being huge and possibly causing a loss of the ability to claim cap gain discount.


----------



## jancha (17 January 2011)

*Re: potential take over tax implications*



Kremmen said:


> In most cases in a full takeover, you can just treat it as though you had bought the new shares at the original price. Just read the ATO's page on takeovers: http://www.ato.gov.au/individuals/content.asp?doc=/content/36712.htm .
> 
> 
> 
> Here's an example of why I don't bother with short-term trading. Current prices are 41c and $2.68, 28.1% and 30.7% rises respectively from those buy prices. Either is a great result, with the time required to extract a few % more being huge and possibly causing a loss of the ability to claim cap gain discount.




That depends on wether your deemed as a day trader otherwise you still pay the full CGT.


----------



## trader8888 (17 January 2011)

*Re: potential take over tax implications*



jancha said:


> That depends on wether your deemed as a day trader otherwise you still pay the full CGT.




How do they classify you either a trader or an investor.


----------



## earthgas (17 January 2011)

Nioka, what is your price target for EKA?


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## nioka (17 January 2011)

earthgas said:


> Nioka, what is your price target for EKA?




I don't have a particular price target. It is an investment that is continually under review. I consider its value mainly on this basis;
1. Are the fundamentals sound.
2. How is it valued in relation to other stocks in its field.
3. Are there alternative investments that would be better to have in my portfolio.
4. Does it suit the risk I am prepared to take.
5. Do I have faith in the management and board.
6. Have I a good "gut feel" about this stock.
7. Is my holding within my limits percentage wise of my portfolio.

Because EKA gives the right answers I will continue to hold. I believe there is plenty of upside for EKA.


----------



## Assasin (17 January 2011)

*Re: potential take over tax implications*



Kremmen said:


> In most cases in a full takeover, you can just treat it as though you had bought the new shares at the original price. Just read the ATO's page on takeovers: http://www.ato.gov.au/individuals/content.asp?doc=/content/36712.htm .
> 
> 
> 
> Here's an example of why I don't bother with short-term trading. Current prices are 41c and $2.68, 28.1% and 30.7% rises respectively from those buy prices. Either is a great result, with the time required to extract a few % more being huge and possibly causing a loss of the ability to claim cap gain discount.




Cheers Kremmen,
           But what should I do with the profit made on this transaction and then the following one if you've read the entire thread.
        Been holding AUT for over 12 months and EKA for 4 so needed to spice things up a bit and thought I'd learn a bit from Noika. Appears the timing was right this time but I'm nervous to do it again.
       Agree with Condog, AUT is a holder, but happy holding EKA and SEA also.


----------



## jancha (17 January 2011)

*Re: potential take over tax implications*



trader8888 said:


> How do they classify you either a trader or an investor.




Probably best if you spoke to your accountant but if you day trade on a regular basis like myself you'd fall under that category and regardless on the length of holding on a particular share you'd still pay the full CGT as i found out.
I thought if i kept a particular share (ADI in this instant) for 12mths without buying & selling it i'd be exempt from the full CGT when i sold. Unfortunately this is not so.
If there is a way around it i'd be pleased to know.


----------



## nioka (17 January 2011)

*Re: potential take over tax implications*



jancha said:


> If there is a way around it i'd be pleased to know.




There is a way around it. You need to have two completely seperate accounts. One for trading and one for investing. Preferably with seperate brokerages and different banks. Talk to the tax department, they will cooperate but get their ruling in writing.


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## bennywizard (17 January 2011)

*Re: potential take over tax implications*



nioka said:


> There is a way around it. You need to have two completely seperate accounts. One for trading and one for investing. Preferably with seperate brokerages and different banks. Talk to the tax department, they will cooperate but get their ruling in writing.




Thanks Nioka, 
My accountant advised me to choose which shares I wanted to trade and which ones I wanted to invest in and I have registered an ABN to do this, but if I understand you correctly you can trade and invest in the same share so long as you do it with separate accounts? 



 Originally Posted by Kremmen  
In most cases in a full takeover, you can just treat it as though you had bought the new shares at the original price. Just read the ATO's page on takeovers: http://www.ato.gov.au/individuals/co...tent/36712.htm .

Thanks Kremmen, appreciated


----------



## nioka (18 January 2011)

*Re: potential take over tax implications*



bennywizard said:


> Thanks Nioka,  but if I understand you correctly you can trade and invest in the same share so long as you do it with separate account




Yes. You can but still get a ruling in writing from the tax dept.


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## jancha (18 January 2011)

*Re: potential take over tax implications*



nioka said:


> There is a way around it. You need to have two completely seperate accounts. One for trading and one for investing. Preferably with seperate brokerages and different banks. Talk to the tax department, they will cooperate but get their ruling in writing.




Thanks nioka i'll follow that up...................................


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## jancha (20 January 2011)

adobee said:


> no.. the sellers are still there..
> could this be one person trying to hold it back with many sell orders ???
> seems a bit weird that 42 people are all wanting to sell at the one figure.. IMO




Adobee; Does seem odd.
 Someone could be holding back the price in order to pick up more at cheaper price?
It will be interesting to see how many of those sells @ 44.5c will disappear when the sp gets closer to it. 
Question; Is it possible to find out if a company or person is holding all those sells?


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## nioka (20 January 2011)

jancha said:


> Adobee; Does seem odd.
> Someone could be holding back the price in order to pick up more at cheaper price?
> It will be interesting to see how many of those sells @ 44.5c will disappear when the sp gets closer to it.
> Question; Is it possible to find out if a company or person is holding all those sells?




It is a logical price for someone to set that have bought at recent prices and are after a reasonable short term gain. It is no big deal or big worry. It will probably be a point that wi9ll stall the SP rise at that price for a day or two when it reaches there. I have no doubt in my mind that it will reach and go on past that point in the near future, all other things being equal.


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## adobee (21 January 2011)

I believe Pattersons have put coverage with price target of 53c..
have read the report yet but sure it will be around soon..


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## Harvestar (24 January 2011)

adobee said:


> I believe Pattersons have put coverage with price target of 53c..
> have read the report yet but sure it will be around soon..




Has anyone read the full Pattersons report? Interested to know what is behind this sp target.

Solid volume already, looks like it could be a good week ahead.


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## Assasin (28 January 2011)

This stock is rediculous. I know we went through this when AUT was an infant but would have thought everyone is a bit more educated on EFS's now.
To help everyone out, I might dump on Monday and that will definately cause a run leaving me even more frustrated.
Got a feeling AUT's booming times have sucked the life out of all others and looks set to continue. Hope you didn't transfer too many over Noika.
Good luck to all.


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## jancha (30 January 2011)

Assasin said:


> This stock is rediculous. I know we went through this when AUT was an infant but would have thought everyone is a bit more educated on EFS's now.
> To help everyone out, I might dump on Monday and that will definately cause a run leaving me even more frustrated.
> Got a feeling AUT's booming times have sucked the life out of all others and looks set to continue. Hope you didn't transfer too many over Noika.
> Good luck to all.




If you dump I'll be picking up more.
Dont see EKA staying at it's 40c sp. Aut is having a good run for now but even blind Freddy can see its only a matter of time before EKA & the likes of it will start it's own run. I for one wont be selling at the current price. Unlike ADI AWE dont hold 33% of EKA shares which  leaves me thinking if they stay around 40c they'll be a T/O target & unlike ADI wont go for a measly 42c.
I feel that quite a few investors are still unaware of the EFS potential and in time they'll all wake up to it. I'd be more inclined to leave AUT for the likes of SEA TXN EKA shares.
Just my thoughts however.


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## Assasin (31 January 2011)

jancha said:


> If you dump I'll be picking up more.
> Dont see EKA staying at it's 40c sp. Aut is having a good run for now but even blind Freddy can see its only a matter of time before EKA & the likes of it will start it's own run. I for one wont be selling at the current price. Unlike ADI AWE dont hold 33% of EKA shares which  leaves me thinking if they stay around 40c they'll be a T/O target & unlike ADI wont go for a measly 42c.
> I feel that quite a few investors are still unaware of the EFS potential and in time they'll all wake up to it. I'd be more inclined to leave AUT for the likes of SEA TXN EKA shares.
> Just my thoughts however.




Cheers Jancha,
            but more money has been made shifting money to AUT rather than away from it in the last few months and there's still a bit to go yet.
        I was on board regarding an EKA take-over but then I started to research who would bother paying a premium on EKA rather than just buying their own leases but I could be way off track. To me, EKA simply isn't big enough to be taken over but happy to be wrong.
    AUT concerns me more regarding being taken over by one of the majors.
   Don't get me wrong, I'm not trying to down play EKA which has been great for me, I;m just a little frustrated with its SP of late.


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## adobee (31 January 2011)

How can you be frustrated of late its gone from 29c to 40c in about a month & a half.. and seems to have some stability round 40c.. thats about 35% return for the month & a half.. that is a pretty good return..  and the trend seems to be upwards from here..  Personally I think EKA has a lot going for it and is my pick of the Eagleford players.. looking forward to quarterly..


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## Assasin (31 January 2011)

adobee said:


> How can you be frustrated of late its gone from 29c to 40c in about a month & a half.. and seems to have some stability round 40c.. thats about 35% return for the month & a half.. that is a pretty good return..  and the trend seems to be upwards from here..  Personally I think EKA has a lot going for it and is my pick of the Eagleford players.. looking forward to quarterly..




Hey Adobee,
            I'm not trying to be smart here but why do you put it as your pick of Eagleford players above SEA, AUT, TXN and others?
Just curious, not trying to say your wrong.
Cheers.


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## trader8888 (31 January 2011)

EKA's quarterly still not out. This is one of the reasons why EKA's SP lags AUT buy ALOT. I dont know if it is lazzines on the directors part, because other than fayette county and sugarloaf they have nothing to take up their time, and their not even operator at sugarloaf. 

AUT IMO is the pick of the bunch, consistant news flow, top managment, acelleration of drilling this year. On the other hand only 7 wells to be drilled in EKA's sugarloaf this year (according to recent EUROZ report) If they dont get some news flowing on Fayette county it could be a bit of a slow year.

Holding ATM, waiting to see quarterly and plans on Fayette county.


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## Sharejon (31 January 2011)

trader,

Another 13 wells are planned to be drilled this year, and the quarterly states that we are fully funded to participate in ALL 13 of these. There will also be more wells in the March Quarter than any other quarter this year. I think about 6/7 or so wells will be fracced in this March quarter, I could be wrong though. A company presentation from a few months ago stated 7 wells would be fracced, although this is subjective on delays and what not.

My concern with EKA is the lack of assets. If they could secure a few more 'Mageuyitos-like' acreage holdings, hopefully even larger, then the company would be in an even more tremendous position.

Right now it looks like they're just continuining with their sugarloaf holding, which although is good, will not see EKA fulfill it's potential as an up and coming O and G company.

Look at what AUT has done to their share price in the last 1 and a bit months, on the back of a very good acquisition.

We're receiving revenue now though, which is great!


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## RaymondJ (31 January 2011)

Sharejon said:


> trader,
> 
> Another 13 wells are planned to be drilled this year, and the quarterly states that we are fully funded to participate in ALL 13 of these. There will also be more wells in the March Quarter than any other quarter this year. I think about 6/7 or so wells will be fracced in this March quarter, I could be wrong though. A company presentation from a few months ago stated 7 wells would be fracced, although this is subjective on delays and what not.
> 
> ...




I agree about the assets although Im a novice on this stock but I have done research on it so tell me if Im wrong here  but Aut and EKA are really two different plays with there resources. I see AUT as acquiring assets and EKA as farming everything out and taking a small percentage of each well, so theire probably not going to be as big a player as AUT or some others. EKA typically seems to only retain 6.5% to 12%


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## Sharejon (31 January 2011)

Hey Raymond,

EKA have a 6.25% working interest in the Sugarloaf (an oil/gas area), where-as AUT have a 15% working interest in the sugarloaf.

So in other words, EKA essentially owns 6.25% of each well drilled in the sugarloaf (which is approximately 24,000 acres large) where-as AUT have a 15% working interest in this area.

AUT also has large working interests across Longhorn (especially), Ipanema and Excelsior.

Hilcorp operates the Sugarloaf, Longhorn, Ipanema and Excelsior areas.

EKA's 6.25% Working interest in the Sugarloaf essentially means they have the equivalent of 1,500 producing acres in the Sugarloaf (part of the eagleford shale)

AUT on the other hand have a total of 15,600 acres as part of the Hilcorp Eagleford farm-in plan, hence they hold 10x the producing acreage that we hold.

EKA holds a 765 acre block of exploration land, called Magueyitos in the Fayette County, although this is exploration land (which will have to be Joint ventured with another company), not proven production land, and hence is worth nowhere near as much as what the sugarloaf/longhorn/excelsior/ipanema acreages are worth.

I recommend you read their most recent AGM presentation which gives a very good run-down on the company. Enjoy.


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## WRONG'UN (1 February 2011)

Update on EKA/AUT relationship.
....................................................................................


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## RaymondJ (2 February 2011)

Sharejon said:


> Hey Raymond,
> 
> EKA have a 6.25% working interest in the Sugarloaf (an oil/gas area), where-as AUT have a 15% working interest in the sugarloaf.
> 
> ...



Oh Ive read it all and Aut has a lot more percentage in its wells anyway I am waiting to get into EKA I think AUT has bolted although it might come back after a while. The problem in EGYPT seems to be easing and the oil price is comming down at least on the NYMEX exchanage because of the excess stocks in US. The European Brent exchange seems to be increasing from what Ive read thats because of the Egypt thing. Anyway waiting to get into EKA/SEA

CHEERS


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## Kremmen (2 February 2011)

Sharejon said:


> AUT on the other hand have a total of 15,600 acres as part of the Hilcorp Eagleford farm-in plan, hence they hold 10x the producing acreage that we hold.




This is, in itself, a meaningless figure. With all the capital raisings, AUT is almost 15x the market cap of EKA. 1/10 the production for 1/15 the price seems like a very attractive deal.


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## adobee (2 February 2011)

I think it would be alot easier to double or tripple the market cap of EKA thank the likes of AUT at this stage personally ... Guess we will all wait and see


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## Assasin (2 February 2011)

Kremmen said:


> This is, in itself, a meaningless figure. With all the capital raisings, AUT is almost 15x the market cap of EKA. 1/10 the production for 1/15 the price seems like a very attractive deal.




Are you boys really going to try to compare EKA's performance to AUT's?
I'm glad your kidding. 
Even SEA and TXN as well as AUT have left EKA for dead due to their progressive business plans and future intentions.
EKA has been good, but well behind the others for a long time now.


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## Kremmen (2 February 2011)

Assasin said:


> Are you boys really going to try to compare EKA's performance to AUT's?
> I'm glad your kidding.
> Even SEA and TXN as well as AUT have left EKA for dead due ... blah blah




TXN's rise in the last 12 months: 206%
EKA's rise in the last 12 months: 335%

To say that TXN has left EKA for dead is nothing short of an outright lie.


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## Assasin (3 February 2011)

Kremmen said:


> TXN's rise in the last 12 months: 206%
> EKA's rise in the last 12 months: 335%
> 
> To say that TXN has left EKA for dead is nothing short of an outright lie.




Thats great, thanks for calling me a liar.
Why don't you take your head out of your backside and read the business operations of SEA AUT and TXN and then check EKA's.
I still believe EKA is good but not a patch on the others. And if your 12 month comparison of SP between TXN and EKA is all you've got well then go and enjoy your day.


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## majorca (3 February 2011)

44.5c must just be a popular number ? or possibly broker sell reccomendation? I thought they had disapeared or is this dejavou ? I did have and extremely misspent youth .....
I hold EKA but unfortunately we are experiencing the ground hog that ADI ran into , untill we have a forward plan which I am sure smarter people than us are working on ..... I hope!


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## Kremmen (3 February 2011)

Assasin said:


> And if your 12 month comparison of SP between TXN and EKA is all you've got well then go and enjoy your day.




Pick any other time period and the same applies. EKA has out-performed TXN consistently. I thought we were supposed to be accurate here, but any suggestion that TXN "has left EKA for dead" is not accurate by any objective measure. Mindless emotive rubbish such as "Why don't you take your head out of your backside" and "I'm glad you're kidding" doesn't make your assertion any more accurate.

If you suspect that TXN will leave EKA for dead, use the correct tense (future, rather than past) and try providing some justification for it, other than your vague impression that what you've read of their business plan sounds better.

I hold both EKA and TXN and am happy for either of them to outperform the other.


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## Assasin (3 February 2011)

Hey Kremmen,

   Yes, concede that EKA has outperformed TXN on SP alone. ( and thats probably why we buy the stock). So I was wrong on that. Sorry.
 I still believe that the business activities of TXN in recent months has surpassed EKA's let alone AUT and SEA and that it will be reflected in SP.
 If you don't wish to have emotive thoughts to be on public forums then why don't you just subscibe to Encyclopedia Brittanica.
 And if you want to keep calling people liars, have the guts to put your name to it.
 Delighted to have robust debate, but don't call people liars.


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## jancha (4 February 2011)

Noticed Huntley's Recommendation for EKA has been updated to a value rating of 1 risk factor of 3 growth value of 1 and a income value of 5.
With one recommendation for a buy.
Only a matter of time for the income value to change as well as the risk imo.
Currently at 44c


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## adobee (4 February 2011)

jancha said:


> Noticed Huntley's Recommendation for EKA has been updated to a value rating of 1 risk factor of 3 growth value of 1 and a income value of 5.
> With one recommendation for a buy.
> Only a matter of time for the income value to change as well as the risk imo.
> Currently at 44c




can you explain that further with comparison to what it was previously .. ??
Thanks


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## jancha (4 February 2011)

adobee said:


> can you explain that further with comparison to what it was previously .. ??
> Thanks




Hi Adobee
I think the key measures before were value N/R Risk 3 Growth 3 Income 5 with no analyst recommending a stong buy where as now there is.
Interesting that Aut has key measures of a Value of 4 & a risk of 4.


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## jancha (4 February 2011)

Good to see that sellers at 44.5c are being taken out reducing the sellers to 17 all up and buyers at 47.
Onwards and upwards


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## adobee (4 February 2011)

Did they get pulled or bought ??? at 44.5

What do people think market just really likes EKA now or someone taking a big position.. I guess we will have to see a change of interest notice at some point if there is but I get the feeling someone is buying up ..


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## bennywizard (4 February 2011)

adobee said:


> Did they get pulled or bought ??? at 44.5
> 
> What do people think market just really likes EKA now or someone taking a big position.. I guess we will have to see a change of interest notice at some point if there is but I get the feeling someone is buying up ..




I'm thinking that AUT has had such a fast run that some people are giving it a rest or softening their positions while getting on board EKA which seemed overdue for its run?
It its something more I guess we'll see an announcement soon, either way I'm happy to be holding right now


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## RaymondJ (4 February 2011)

jancha said:


> Good to see that sellers at 44.5c are being taken out reducing the sellers to 17 all up and buyers at 47.
> Onwards and upwards



Its at 43.5  at the moment with the occasional upswing but dropping back again.
Im waiting to get in but not at this price!!

Update it hasnt traded for 45minutes. What does that mean?


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## Sdajii (4 February 2011)

adobee said:


> Did they get pulled or bought ??? at 44.5




They were all bought, check the course of sales. They went through about 11.58am. It was a pretty huge chunk of EKA someone bought. Nice to see a new 52 week high today.


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## adobee (8 February 2011)

Not sure if its been mentioned already.. 
Got a letter from EKA today with a copy of the Patersons Research coverage ..
They have initiated a Buy 20th January 2011 with target $0.53c .. nice little report ..
Expect a copy would have been received by all share holders..


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## Sdajii (9 February 2011)

adobee said:


> Not sure if its been mentioned already..
> Got a letter from EKA today with a copy of the Patersons Research coverage ..
> They have initiated a Buy 20th January 2011 with target $0.53c .. nice little report ..
> Expect a copy would have been received by all share holders..




I suppose they got the NSW metro before Victoria. I know a few Victorian (Melbourne and Kinglake) holders who didn't get one today. I'll keep an eye on the mail box


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## adobee (10 February 2011)

Taken a breather from EKA with exit at 43c 
need monies to take up avi.. else would have kept holding but also think it could sit around 43-44c for a little while now..

With regard to the exploration acregage, 765 acres in the Fayette County I am trying to find out who is drilling in this area or about to start and what success they are having.. ??

this seems to be a list of the operators..
http://mshaletaskforce.org/uploads/Operators_in_Fayette_County.pdf

also just came across this blog i havent seen before may be of interest to some people ..
http://eaglefordshaleblog.com/discussion-area/?vasthtmlaction=viewtopic&t=25.0


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## majorca (10 February 2011)

Adobee,
           I didn't know you owned land in fayette county? It is probably just a coincidence but when I followed the link there was a question similar to yours from a landowner that has only made 1 post? I know it doesn't matter but find it funny how resourcefull we can be when required! It also disarms the punters I suppose if you are on the same side of the fence as them. So is there a thread in here for avalon?
no offence intended just an observation


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## adobee (10 February 2011)

haha i dont own land in Fayette county unfortunately.. wish i did... 
must be a co-incidence as i havent posted on those sites but just been googling for some info on this area and who has started exploration there already. ..


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## Assasin (15 February 2011)

Well Adobee, you sure got it right. Good timing.


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## AngusSmart (15 February 2011)

Hey Adobee, i have been looking on trrc website for drilling applications and current/recent drilled wells. do you happen to have a pinpoint/rough idea on where abouts eka have bought.. the countys not easy to search would be good if there was an exact location of this land as i am not far off finding info..


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## condog (16 February 2011)

i bet those who trade with trailing stop losses dont feel real trick on EKA this morning, it was a classic case of the intelligent traders poaching the tricky traders. 

Guess who won. 

But damn i missed it by a few minutes.


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## barney (16 February 2011)

condog said:


> i bet those who trade with trailing stop losses dont feel real trick on EKA this morning, *it was a classic case* of the intelligent traders poaching the tricky traders.
> 
> Guess who won.
> 
> But damn i missed it by a few minutes.




Dead right there CD,

I sent an email to a friend of mine just after the 10% push down after the open, with the subject matter being "looks like tree shaking" ..... Not a lot of branches fell off the tree though 

"Real" sellers may be thinning out, and either somebody doesn't quite have as much stock as they prefer ..... or they just want to clear out the remaining sellers at the immediate price levels before they bump this up ......  looking interesting


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## howmanyru (16 February 2011)

I bought this stock yesterday at 40c, one day to early - D'oh, could of had it for 32c today but back up so breathing a sigh of relief. Market depth can be a blessing and a curse, I think it is used to manipulate daily prices in a big way. Big sell orders came in just before open to scare nervous holders into selling (nearly paniced and sold myself !) they think it is going to fall off a cliff so get out while they can. Then, as if by magic, the buyers re appear to bottom feed and price goes up. Oh well, seems ruthless but just business i guess.


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## Kremmen (16 February 2011)

howmanyru said:


> D'oh, could of had it for 32c today but back up so breathing a sigh of relief. Market depth can be a blessing and a curse, I think it is used to manipulate daily prices in a big way.




Did you see how long that 32c lasted? One second, wasn't it? Whoever made that buy really got lucky.


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## howmanyru (16 February 2011)

Kremmen said:


> Did you see how long that 32c lasted? One second, wasn't it? Whoever made that buy really got lucky.




Yep, one second for 43K shares, just luck to get that price, over 20% profit in a day, not bad


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## condog (16 February 2011)

A cssic case of how you can get burned using stop losses in low $$  turnover stocks.


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## breaker (16 February 2011)

Yeah well they got me....Condog , could you please explain how that happened
Ta


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## Sharejon (16 February 2011)

breaker, the market depth on the buy side was very weak, and hence not THAT much volume was required for the price to get so long, as the sell orders kept hitting lower and lower buy orders.

I'm not sure if more buyers came on the scene as the price got lower (I wasn't spectating at the time), but I did notice there being more buyers as the day rolled on.


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## breaker (17 February 2011)

Thanks sharejon


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## jancha (23 February 2011)

adobee said:


> Taken a breather from EKA with exit at 43c
> need monies to take up avi.. else would have kept holding but also think it could sit around 43-44c for a little while now..
> 
> With regard to the exploration acregage, 765 acres in the Fayette County I am trying to find out who is drilling in this area or about to start and what success they are having.. ??
> ...




Good timing Adobee. Just out of curiousity what did you pick your AVI shares up at or have you sold and bought back in to EKA? Good value imo.
Ps Have you found out any further information on operators in the Fayette county region?


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## Sharejon (28 February 2011)

A great production update in my opinion. 

Direct Assets flows may seem slightly on the disappointing side, but I'm definitely happy with them considering how long it took from fraccing to producing (due to the remedial repair operations)

Holman-1H has been fracced 4 days ago and we should receive 10 day flows early next week.

Jordan-1H has been spudded, due to be fracced soon.

PMT/Buehring has started drilling.

AUT Reserves upgrade due in the coming weeks, this is very important for EKA as well, as it will give an indication on the progress of EKA's sugarloaf reserves.

How EKA is down today 1 tick, and lower than it was a few weeks ago, is very surprising to be honest.

We've had:

1. Very positive news about the lease pooling agreement, I had not expected news of an initial well in our Fayette County for 6 months or so, but it arrived last week.

2. The price of oil rising heavily now, this will be indicative in our profits this quarter

3. What is in my opinion a very re-assuring production update today.

As Nursery has often said in the past, "EKA is lagging heavily".


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## Sharejon (28 February 2011)

I think that today represents a very good opportunity for those who got 'shaken out (with stop losses)' to buy back in.

I say this as I think the company is more attractive than it was during the 'shake out', and it still trading at a discount to where it was a couple of weeks ago.

I say that EKA is more attractive because it's released pretty good Direct-Assets flows (considering the length of time operations it took to get the well flowing, pressure was lost), fantastic declines on Kowalik and Urrutia, positive news on the new wells (Holman, Jordan, PMT, Buehring) and the above news that i commented on, the lease pooling agreement.

A definite buy for me at these levels, unfortunately I don't have the funds though.


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## Assasin (2 March 2011)

Some great action and forward planning finally coming from EKA management with recent announcements. It's a shame that world instability has negated the momentum. 
Still, bought another parcel to double holdings and happy to ride this one out now.


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## Assasin (10 March 2011)

Has everyone dropped off this stock?
With todays buying opportunities, I've just brought another bunch at 37.5. My thinking is for the next 6 months not 6 days.
If they drop any more, the kids piggy banks are likely to be sacrificed.



Holding: AUT, SEA, EKA, TXN, HOG, MHM


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## Harvestar (10 March 2011)

Have I missed something in the last week or something?

Positive news this morning brings about a 11% loss just today!


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## adobee (10 March 2011)

If only I new what tomorrow holds ... 
Was about to take out .38c and then realised its 4.38pm ... 
oh well back to work ..


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## majorca (10 March 2011)

Assassin,
            there are still plenty of voyuers in the wings and I think it is a very good opportunity. Although I also thought that yesterday when I grabbed 15000 Aut at 2.92.
After that transaction I convinced myself that I was a bloody genius only for the facts to bring me back down to earth again. This time I am waiting a little longer most likely to turn the computer on and find I missed out? The stock market seems to be a little like my wife actually.


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## Assasin (11 March 2011)

majorca said:


> Assassin,
> there are still plenty of voyuers in the wings and I think it is a very good opportunity. Although I also thought that yesterday when I grabbed 15000 Aut at 2.92.
> After that transaction I convinced myself that I was a bloody genius only for the facts to bring me back down to earth again. This time I am waiting a little longer most likely to turn the computer on and find I missed out? The stock market seems to be a little like my wife actually.




Cheers Majorca,
              your a brave man printing that. In the not to distant future, i'm sure you'll be happy with your AUT purchase. 
            You could be right with EKA too, might still be room for more drop.
  Good luck.


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## tradefill (17 March 2011)

eka goin down. Hopefully it jumps up again soon. Anyone know why the price is going down? I'm guessing it's just market sentiment with the japan crisis and libya?


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## Assasin (17 March 2011)

tradefill said:


> eka goin down. Hopefully it jumps up again soon. Anyone know why the price is going down? I'm guessing it's just market sentiment with the japan crisis and libya?




Tradefill,

         I don't think EKA has done anything wrong in the past month, quite the contrary, great reserves update and built up business plan.
        Whats happened in the markets recently has really had a major effect on EKA, to my knowledge the biggest drop of all the oil shalers for unknown reasons. Seems to me EKA is the ugly duckling of the shalers.
        A great opportunity has been presented imo.
        However, I now have more of my own money in this than any other stock I own so hoping for a great year. 
         Pretty confident the next 6 months are going to be successful.


Holding: AUT, EKA, SEA, TXN, HOG, MHM.


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## tradefill (17 March 2011)

Assasin said:


> Tradefill,
> 
> I don't think EKA has done anything wrong in the past month, quite the contrary, great reserves update and built up business plan.
> Whats happened in the markets recently has really had a major effect on EKA, to my knowledge the biggest drop of all the oil shalers for unknown reasons. Seems to me EKA is the ugly duckling of the shalers.
> ...




Thanks for the reply. I'm in a similar boat to you holding aut, eka, sea, hog. Yeh i thought eka we're doing well (fundamentally) so it is a good buying opportunity. I'm sure you will do well in the next 6 month, good luck to all of us!


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## stockjunkie (24 March 2011)

just placed an order at .36

hopefully i pick some up just as the market opens :


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## Agentm (29 March 2011)

http://www.scandoil.com/moxie-bm2/news/georesources-provides-operations-update-3.shtml

i dont hold

geo resources talk about fayette county


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## Assasin (29 March 2011)

Agentm said:


> http://www.scandoil.com/moxie-bm2/news/georesources-provides-operations-update-3.shtml
> 
> i dont hold
> 
> geo resources talk about fayette county




Thanks Agentm,
             very sporting of you. Will be interesting to follow the results. This stock certainly needs a kick along.


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## jancha (29 March 2011)

Thanks for the post Agentm.
Interest particularly in the EKA thread seems to have dropped off. 
10th of March was EKAs last announcement. Should be due for another soon hopefully.
I am surprised to see EKA trading at it's current sp but then again the likes of AUT are in the same boat with the exception of SEA which has managed to hold it's ground.


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## adobee (31 March 2011)

I am keeping my eye EKA. . looking to re enter Q2 for spudding of Fayette well ..


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## Agentm (3 April 2011)

adobee, and to all current eka holders



some local research on the eka fayette region

very little exploration in the efs in fayette.

southern bay have twinned some laterals called flatonia east unit 1 and unit 2

they will be running a frac in one and listening in on the frac with the other to asses the formation and to determine how the fracs work in this efs region

so far one well is completed and the other is currently being drilled

very much in the early stages of development for the EFS in fayette.

i dont hold eka... and best of luck to all holders


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## nioka (3 April 2011)

Posted on other threads, this has to help EKA

"Obama pushes jobs for clean energy22:01 AEST Sat Apr 2 

Linking economic growth and energy independence, President Barack Obama says shifting the country away from imported oil and toward cleaner forms of energy will help continue a trend that has led to 1.8 million new jobs in the past 13 months.

Obama used his weekly radio and internet address on Saturday to promote his ideas for bringing down petrol prices by decreasing US dependence on foreign oil.

A blueprint he outlined in a speech this week calls for increasing domestic oil exploration and production, making cars and trucks more energy efficient and building vehicles that run on alternative fuels or electricity.

Noting that the US doesn't have enough oil reserves to meet its needs, he set a goal of reducing imports by one-third by 2025.

"By doing so, we're going to make our economy less vulnerable to wild swings in oil prices," Obama said.

"We're going to use cleaner sources of energy that don't imperil our climate. And we're going to spark new products and businesses all over the country by tapping America's greatest renewable resource: our ingenuity.""


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## martyfar (4 April 2011)

Hmmmmm  EKA in trading halt pending announcement regarding  new acquisition and subsequent capital raising ....interesting  !!


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## AngusSmart (4 April 2011)

A *proposed* new acquisition and proposed capital raising..

they're going to need a lot of work to secure these leases of all this new land!! $$$$


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## adobee (4 April 2011)

EUREKA SECURES OPTION TO INCREASE NET EAGLE FORD ACREAGE BY 278%
● Eureka signs option agreement to acquire 3,975 net acres in the Eagle Ford Shale. (“Brioche Project”)
● Upon exercise of the Option, Eureka will hold over 6,200 net acres of Eagle Ford shale and nearly 30,000 gross acres.
Eureka Energy is pleased to announce completion of an option agreement to acquire 3,975 net acres in the Burleson and Washington counties, Texas. The acreage lies within the eastern liquids-rich fairway and potentially is within the gas-condensate window of the Eagle Ford shale.


Agent M you got any comment on this new acquisition ground ??
Thanks,


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## Agentm (4 April 2011)

i can see some 19 efs wells for the apache, all drilled in 2008.  none since

looks like only one well, the apache giesenchlag-groce is showing any signs of some payback for the well costs so far, the greater majority would be not so pleasing for apache in any way really imho in terms of payback

2 wells last year in january and in june for williams clayton energy..

thats all i can find,, i cant find anything for washington county what so ever in the EFS 

i can post up the production numbers for you


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## jancha (4 April 2011)

Agentm said:


> i can see some 19 efs wells for the apache, all drilled in 2008.  none since
> 
> looks like only one well, the apache giesenchlag-groce is showing any signs of some payback for the well costs so far, the greater majority would be not so pleasing for apache in any way really imho in terms of payback
> 
> ...




The majority of wells other than 2 gas wells are still a fair distant to where EKA are looking at so i dont see the relevance in what your saying Agentm.
It's a bit like comparing McMullen to Duval county but thanks for the interest.


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## Sdajii (4 April 2011)

jancha said:


> The majority of wells other than 2 gas wells are still a fair distant to where EKA are looking at so i dont see the relevance in what your saying Agentm.
> It's a bit like comparing McMullen to Duval county but thanks for the interest.




Agentm is probably thinking it's a hot deal and quietly accumulating 

*waits for Agentm's next abusive PM*


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## bennywizard (5 April 2011)

Capital raising was at 36c and oversubscribed, at only a small discount to current levels this is a good sign imo. Land purchased at a bargain price. If this land turns out to be productive the share price should really kick on.


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## Sharejon (6 April 2011)

A copy and paste of what I wrote up on Hotcopper, regarding an estimation as to what the value of our Sugarloaf interest. Make of it what you will.

We own 1500 acres net, out of the 24000 gross sugarloaf acres. Therefore by owning a relatively small percentage of a very big area, we won't face issues of wasted offcuts of land e.g. in our Fayette acreage, there might be an offcut or two which the company can't squeeze into the drilling plans as there isn't enough spacing within our acreage to do so. This won't be an issue for the sugarloaf, as missing out on the spacing of 1 well with a 6.25% working interest isn't that significant at all in the scheme of things.

1500 acres / 80 acre spacings = a total of 18.75 wells for EKA over the duraction of the Sugarloaf. I'll use 80 acre spacings for these calcs but in the future 60 acre spacings will probably come into play, with the possibility of slightly even tighter spacings eventually.

Expenses first: This data comes from NSAI's assumptions for the December 2010 reserves report (located in AUT's investor presentation from March 8)

18.75 net wells * $6.75 million per well = $126.6 million we have to pay for capital expenses over the duration of the Sugarloaf.

We also pay $20,000 per well/month. Let's assume the well flows for 15 years (EOG investor reports show a possible flow of 20 years)

That's $3.6 million per well over this 15 year period.

In other words roughly $10.35 million per well, capital and operating expenses.

Revenue:

If we assume a possible 500K EUR, that's equivalent to $54 million (p.o. $108/barrel) revenue from this well.

54-10.35 = roughly $44 million per well of profit (before tax and royalties)

After royalties of 25%, this = $33 million

after corporate tax of 35%, this = $21.45 million

$21.45 million * 18.75 = $402 million

Take about $50 million for admin expenses and this becomes $350 million. Our current MCap is only $80 million.

So a fully developed MCap of $350 million could be achievable from purely producing the sugarloaf over the 15 or so years. (with peak production most likely in line with AUT's peak production in 2017).

N.B. These rough calculations are using 80 acre wells spacings. The potential of 60 and possibly 40 acres could very well (60 acre well spacings probably will) come into play in the future. If 60 acre spacings eventuate, that $350 million can turn into something like $450 million.

So although the growth would be steady over 10 years or so, share price growth of 5 times purely from the Sugarloaf is very much achievable, and this is using the current assumptions. An AUT broker report has said that AUT's reserves could increase by as much as 10 times with tighter well spacings and new fraccing technology.


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## AngusSmart (7 April 2011)

Does EKA, And AUT pay the full price for the wells?? which you got @ 6.75m... or is this cost split up between the operators??

or was that only part of the original farm in business?


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## jancha (7 April 2011)

AngusSmart said:


> Does EKA, And AUT pay the full price for the wells?? which you got @ 6.75m... or is this cost split up between the operators??
> 
> or was that only part of the original farm in business?




My understanding with the farm in was that Hillcorp paid for the cost of the wells and re couped the cost of the well once it went to sales. When the cost was recovered from the sales EKA AUT recieved their % on the continuing sales.


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## Sharejon (7 April 2011)

Angus,

the 18.5 net well count I calculated, came from dividing our net sugarloaf area by the acre spacing.

The reality is that EKA will be participating in (23500/80) = 294 sugarloaf wells at the current spacing, but these are at the 6.25% working interest, which ends up being 18.5 net wells. So by the time the sugarloaf is fully developed we'd have paid 18.5* $6.75 million based on current costs.

As for the capex of the wells, I thought that for the first 3 farm in wells, we paid back the capex of those through production (i.e. we only actually got revenue from the wells after our capital share of the costs had been recovered through oil production), and that for the rest of the wells we just paid it in cash.

That's what I think anyway.


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## jancha (7 April 2011)

Sugarloaf Gas and Condensate Project >> Hilcorp Energy – Sugarloaf Farm-in
In the 3rd quarter of 2009 Eureka, together with other Sugarloaf AMI participants, was successful in farming out its Sugarloaf acreage to Hilcorp Energy Company (“Hilcorp”), one the largest privately owned E&P companies in the USA. 

At the time, in the midst of the Global Financial Crisis, the farmin by an established large company such as Hilcorp represented a significant endorsement of the multi TCFe potential of the Sugarloaf gas and condensate asset and the value of Eureka’s interest. Since that time, Hilcorp has demonstrated its ability to efficiently operate the Sugarloaf AMI.

Pursuant to the farmout arrangements, Eureka has and will continue to be free carried for the:

•drilling, completion, fracture stimulation and tie in of 3 new horizontal wells (these wells have now been drilled & tied in to sales lines and are awaiting stimulation - Rancho Grande #1H, Morgan #1H, and Easley #1H), and
•fracture stimulation of the three existing Sugarloaf horizontal wells; Kennedy #1H, Kowalik #1H and Weston #1H (the stimulation of Kennedy#1H and Weston#1H has occurred – with very encouraging initial production rates). 
Under the Farmout, Eureka’s working interest in the Sugarloaf AMI will reduce by 50% (from 12.5% to 6.25%) upon completion of the above work obligations.

The Hilcorp activity within Sugarloaf has yielded very encouraging production from the first two stimulation operations and the initial production results from the first two new wells are amongst the best reported in the field. Eureka believes that these results together with the production results from the final farminwell which is soon to be stimulated and the widespread ongoing regional activity will greatly assist in establishing the considerable value of our interest in the Sugarloaf AMI.

Eureka’s capital requirements during the farmin period have been minimal as Hilcorp is providing a free carry over 100% of Eureka’s costs. Hilcorp will receive priority pay back of its capital costs, thereafter, Eureka is entitled to its post farmout share of production income.

Hilcorp has also committed to a farmin over other land areas within the Sugarkane Field either adjacent to or nearby the Sugarloaf AMI, with corresponding drilling requirements. This additional activity will lead to a meaningful drilling and completion program that aims to establish a portfolio of producing wells within the Sugarkane acreage that in turn will assist in demonstrating the multi Tcfe potential of the Sugarloaf AMI. 
This website is optimised for viewing with Internet Explorer 6.0 or better. Using other browsers may have unpredictable results.
All content  © 2011 Eureka Energy Ltd. Site by Biz AnyWare


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## nioka (7 April 2011)

Jancha,

I think they need an update. A lot of water has flowed under the bridge since then.


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## jancha (7 April 2011)

EUREKA AGREES EAGLE FORD SHALE LEASE POOLING ARRANGEMENT IN FAYETTE COUNTY – FIRST WELL PLANNED TO SPUD DURING Q2 2011
The Directors are pleased to announce that Eureka has entered into a lease-pooling agreement covering part of its Fayette County Eagle Ford Shale acreage.
Commenting on the arrangement, Eureka Chairman Ian McCubbing said:
“This is a mutually beneficial arrangement with the potential to add greatly to the value of our overall Fayette County acreage with a comparatively modest drilling outlay. We are pleased to be moving on to the exploration phase of our second Eagle Ford shale property with a well expected to be spud within only 10 months of acquiring these leases. Since Eureka acquired this acreage leasing activity in Fayette County has accelerated rapidly and (as detailed in our December Quarterly Report) wells within approximately 20 miles of our holding that appear to be on trend have reported estimated ultimate recoveries of 362,000 and 500,000 boe. We look forward to working together with the highly regarded and experienced GeoResources and Nabors groups to unlock the value of this project area”
Under the terms of the agreement Eureka will:
● Contribute approximately 86 acres to form a new drilling unit known as Blackjack Springs
● Hold a 9.4% working interest in the 916 acre pooled area (see Fig 1.)
● Pay for its working interest share of a planned horizontal well expected to be spud during Q2 2011
● Retain its current 100% working interest ownership of the remaining 675 acres of Eureka’s Fayette County project area
The agreement is with Southern Bay Operating, LLC (”Southern Bay”). Southern Bay is a wholly-owned subsidiary of NASDAQ-listed GeoResources, Inc. (“GeoResources”), and is involved in a joint venture with an affiliate of Nabors Industries LTD (“Nabors”) to acquire and develop acreage in Texas that is prospective for the Eagle Ford Shale.


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## jancha (7 April 2011)

SUGARLOAF PROJECT - INDEPENDENT RESERVES REPORT
● Proved (1P) oil Reserves Increase by 145% to 1.2 million barrels plus 5.6 BCF gas (50% increase)*
● Proved + Probable (2P) oil Reserves increased by 70% to 2.7 million barrels plus 12.4 BCF gas (13% increase)*
● Proved + Probable + Possible Oil (3P) Reserves increased by 10% to 5.4 million barrels, Gas reduced 16% to 25 BCF*
The Eureka Directors are pleased to report that independent petroleum consultants, Netherland Sewell & Associates (NSAI), Inc., of Houston, Texas have completed estimates of petroleum reserves and future revenues for the Eureka Energy Limited interest in the Sugarloaf Project. Their report is dated 31 December 2010.
NSAI have prepared the estimates in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System approved by the Society of Petroleum Engineers (SPE).
* The noted change in reserves is in relation to the 1st July, 2010 NSAI reserves report, as disclosed by Eureka Energy on 18th August, 2010.
Page | 2
Eureka has prepared the following summary from the NSAI Report.
STATEMENT OF RESERVES AND FUTURE NET REVENUE FOR EUREKA’S INTEREST
Net Reserves
Future Net Revenue (USD) Category
Oil (Barrels)
Gas (MCF)
Total
Present Worth at 10% discount Proved
1,233,797
5,575,139
86,418,400
48,897,000 Probable
1,503,801
6,845,226
102,506,800
46,322,200 Sub-total 2P
2,737,598
12,420,365
188,925,200
95,219,200 Possible
2,702,691
12,586,978
184,154,600
64,852,100 Total 3P
5,440,289
25,007,343
373,079,800
160,071,300
Reserves are for Eureka’s post farmout interest in Sugarloaf (6.25%) and are net of all royalties. Future Net Revenue to Eureka is after deducting royalties, state production taxes, ad valorem taxes, capital expenditure, operating expenditure and abandonment costs but not company income taxes.
Oil and gas prices used are based on 1 January 2011 NYMEX West Texas Intermediate prices and are adjusted for quality, transportation fees and regional price differential. Gas prices are based on 1 January NYMEX Henry Hub prices and are adjusted for energy content, transportation fees, and a regional price differential. All prices before adjustment are shown on the following table:
Period Ending
Oil Price (USD/Barrel)
Gas Price (USD/MMBTU)
31/12/2011
93.61
4.59
31/12/2012
93.95
5.08
31/12/2013
92.95
5.33
31/12/2014
92.40
5.49
31/12/2015
92.55
5.64
Thereafter
93.11
5.79
The reserves are based on 283 horizontal wells with 80 acre spacing. There is potential to increase reserves by increasing recovery per well and by reducing future well spacing.
Page | 3
Mr Ian McCubbing, chairman of Eureka commented:
“Eureka is pleased to note a 70% increase in Proved and Probable (2P) oil reserves and a 13% increase in 2P gas reserves.
The 3P NPV10 value of the project is calculated by NSAI to have reduced by some 15% from US $187 to US $160 million. The main reason for the reduction is the conservative application of higher Operating Cost assumptions. The NPV has also been calculated using January 1 2011 prices, but if the February 28th forward strip is used, the NPV10 increases to US$178 million.
Given that we can expect to have an additional 13 wells by December 31 2011 , it is expected that most of the 3P reserves will be converted to Proved and Probable (2P) reserves by year end.”
Technical Information contained in this report has been reviewed by Mr C. C. Hodge M.Sc, a consultant to Eureka who has had more than 30 years experience in petroleum geology and has consented to the inclusion of the information in the form and context in which it appears.


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## jancha (8 April 2011)

SUGARLOAF AMI OPERATIONS AND PRODUCTION UPDATE
Aurora Oil & Gas Limited (“Aurora”) is pleased to provide the following update on operations and
production at the Sugarloaf Area of Mutual Interest (“AMI”) within the Sugarkane Gas &
Condensate Field, Texas.
Aurora also participates as a WI holder in a larger area made up of an additional ~ 49,500 acres
within the Sugarkane Field adjacent to the Sugarloaf AMI. Aurora is the only listed participant in
these areas and currently has three other rigs operating in that acreage. Aurora provides separate
updates on those operations.
Production Data
The following wells have been on production for a period of either 30 or 60 days and Aurora is
pleased to provide the market with an update on produced volumes during that period:-
Working
Interest
Total Gas
Production
(mmscf)
Total
Condensate
Production
(bbls)
Average Daily
Equivalent Oil
Rate (boe/d)*
Direct Assets #1H – 30 day 10% 40.6 13,930 690
Direct Assets #1H – 60 day 10% 81.7 26,376 666
Hollman #1H – 30 day 15.78% 58.8 17,875 884
*The equivalent barrels per day production rate has been calculated on a simple 6:1 ratio in compliance with Canadian
securities laws under National Instrument 51 - 101.
Operations
Hollman #1H (15.78% WI)
This Hollman well was fracture stimulated with 18 stages across approximately 4,800 ft of
horizontal length. The well commenced flowing on 7th March 2011 and the 30 day production
results are provided in the table above. This well achieved first production 43 days after it was
spudded.
PMT #1H (28.7% WI)
The PMT well location lies across the Sugarloaf and Ipanema AMI areas. As such Aurora holds a
blended working interest of 28.7% in the well. The well spudded on 14/2/11 and reached TD on the
26th March 2011 at a Total Depth (“TD”) of 18,200 ft. Production casing has been run on this well
and it is awaiting fracture stimulation.
Buehring #1H (15.78% WI)
Drilling operations commenced on the 18th February 2011 and the well reached a TD of 17,386ft on
9th March 2011. Production casing has been run on this well and the fracture stimulation of this well
has just been completed with 16 fracture stages. Aurora will provide an update to the market once
30 day production figures are available.
Davenport #1H (24.31% WI)
The Davenport #1H well location lies across the Sugarloaf and Longhorn AMI boundaries and as
such Aurora holds a 24.31% blended working interest in the well. This well is presently at
approximately 5,000 ft and drilling ahead.
ASX participants in the Sugarloaf AMI are:
Aurora (ASX:AUT and TSX:AEF) – 15.7%
AWE (ASX:AWE) – 10%
Eureka (ASX:EKA) – 6.25%
About Aurora
Aurora is an Australian and Toronto listed oil and gas company active exclusively in the over
pressured liquids rich region of the Eagle Ford Shale in Texas, United States. The Company is
engaged in the development and production of oil, condensate and natural gas in Karnes, De Witt
and Atascosa counties in South Texas. Aurora participates in over 73,000 highly contiguous gross
acres in the heart of the trend, including over 15,600 net acres within the liquids rich zones of the
Eagle Ford. Aurora is funded for and expects to participate in approximately 60 new development
wells during 2011.
Technical information contained in this report in relation to the Sugarkane field was compiled by
Aurora from information provided by the project operator and reviewed by I L Lusted, BSc (Hons),
SPE, a Director of Aurora who has had more than 15 years experience in the practice of petroleum
engineering. Mr. Lusted consents to the inclusion in this report of the information in the form and
context in which it appears.


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## jancha (14 April 2011)

EKA hasn't had much support in the wake of it's capital raising @ 36c.
For a change Mr average share holder can buy in at a cheaper price at around 34c unlike TXN who had a raising @ 65c? to all of it's holders and has maintained their sp of around 83c.
Maybe holders of EKA aren't too happy with the Brioche Project? Some large sells and few buyers lined up today. Patience is the key here and a buying opportunity for those who missed out on the raising.


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## Assasin (14 April 2011)

jancha said:


> EKA hasn't had much support in the wake of it's capital raising @ 36c.
> For a change Mr average share holder can buy in at a cheaper price at around 34c unlike TXN who had a raising @ 65c? to all of it's holders and has maintained their sp of around 83c.
> Maybe holders of EKA aren't too happy with the Brioche Project? Some large sells and few buyers lined up today. Patience is the key here and a buying opportunity for those who missed out on the raising.




Cheers Jancha,
                  I think a lot of funds have shifted over to TXN who seem to be the flavour of the month, (probably rightly so). I've also been tempted to do so but just can't seem to push the sell button at these levels. I sold out of SEA a week or so ago to buy TXN and also more EKA.
              Just can't see why EKA is so unloved. Noika has a chant going on another forum which is proving un-successful. Perhaps it will be EKA's turn next month. Dec-Jan was AUT's, last month was SSN, this month is TXN, next EKA???


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## nioka (14 April 2011)

Just as I dont fall in love with a share nor do I fall out of love with one. I just sit back and wonder where I may be wrong. I go back and look at the reasons why i hold that share. If I decide the reasons still add up fundamentally then i continue to hold. With EKA I continue to hold, even buy a few more. I'll admit I did sell some. They were the ones that are part of my project on ASF to show that it is worth investing $1500. They were sold to take up the TXN SPP as part of the exercise and not for any other reason. I am now buying them back in slightly increased numbers thanks to the drop in th SP. That is one advantage of a stagnant SP, an opportunity to trade for freebies.

I have been saying "Come on EKA Come on" and "Aussie, Aussie, Aussie Oi, Oi, Oi" Hoping to use some cheer squad psychology to motivate this little beast in the olympics of oil search. It doesn't seem to be working. Team EKA will lose a sponsor or two if this keeps up.:aus:


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## jancha (14 April 2011)

Assasin said:


> Cheers Jancha,
> I think a lot of funds have shifted over to TXN who seem to be the flavour of the month, (probably rightly so). I've also been tempted to do so but just can't seem to push the sell button at these levels. I sold out of SEA a week or so ago to buy TXN and also more EKA.
> Just can't see why EKA is so unloved. Noika has a chant going on another forum which is proving un-successful. Perhaps it will be EKA's turn next month. Dec-Jan was AUT's, last month was SSN, this month is TXN, next EKA???




You could be right there Assasin,
            I've been top heavy in EKA and did exactly that. I like to trade a % in and out  of EKA but find of late it's not volatile enough hence the trade down. Still my favourite tho and as you say down the track they should have their own run up but i wish it would hurry up.


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## adobee (15 April 2011)

EKA looking prime for an entry whilst it isnt the flavour of the month..

Got my eye on this today .. hopefully not too late yet ..


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## Assasin (15 April 2011)

adobee said:


> EKA looking prime for an entry whilst it isnt the flavour of the month..
> 
> Got my eye on this today .. hopefully not too late yet ..




How did you go Adobee, did you get in?
I reckon your timing is spot on just as it was when you got out a little while ago.
Well done.


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## adobee (18 April 2011)

picked up a few today.. but someone keeps jumping infront of me in the que..
I am currently holding a few dogs i need to get out of but will keep loading up on this.. 
This is my warren buffet trade .. (with substanially less sophistication)


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## jancha (18 April 2011)

adobee said:


> picked up a few today.. but someone keeps jumping infront of me in the que..
> I am currently holding a few dogs i need to get out of but will keep loading up on this..
> This is my warren buffet trade .. (with substanially less sophistication)




Hopefully this isn't one of those dogs. Certainly has been of late considering how the other EFS companies have fared. Hanging in there even tho i've loaded off some EKA today (probably what you picked up) to buy some more TXN.


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## adobee (18 April 2011)

all good if you want to move is sub 35c .. I am happy to take it ..


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## jancha (19 April 2011)

adobee said:


> all good if you want to move is sub 35c .. I am happy to take it ..




How many do you want?
I wouldn't be too happy if the sp falls below 31c. Next resistance level is 27c.
Currently as low as 31.5c today


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## adobee (29 April 2011)

Update:
Eureka is pleased to announce the spudding of Blackjack Springs Unit #1H, the first well at its Pan de Azucar Eagle Ford Shale project in Fayette County, on-shore Texas USA.
As of 27 April 2011 local time, the operator, Southern Bay Operating, LLC (“Southern Bay”) advised that the well had reached a depth of 2,080 ft and was drilling ahead. The well is planned to target the Eagle Ford Shale at a vertical depth of approximately 10,500 feet with a horizontal of around 6,000 feet.
The Blackjack Springs Drilling Unit is a 916 acre pooled unit to which Eureka has contributed 86 acres for its 9.4% working interest. The unit is immediately adjacent to the remaining 675 acres (EKA WI 100%) that make up the balance of the Pan de Azucar project.



I expect the results of this drill will have a big impact on EKA..  I see this as almost risk free at the current price for new buyers.. but if they are good results then I see huge upside for their acerage.. Fingers crossed I can get some more money before price moves upwards..


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## Magic Man (29 April 2011)

adobee said:


> Update:
> Eureka is pleased to announce the spudding of Blackjack Springs Unit #1H, the first well at its Pan de Azucar Eagle Ford Shale project in Fayette County, on-shore Texas USA.
> As of 27 April 2011 local time, the operator, Southern Bay Operating, LLC (“Southern Bay”) advised that the well had reached a depth of 2,080 ft and was drilling ahead. The well is planned to target the Eagle Ford Shale at a vertical depth of approximately 10,500 feet with a horizontal of around 6,000 feet.
> The Blackjack Springs Drilling Unit is a 916 acre pooled unit to which Eureka has contributed 86 acres for its 9.4% working interest. The unit is immediately adjacent to the remaining 675 acres (EKA WI 100%) that make up the balance of the Pan de Azucar project.
> ...




Im not sure how anyone can buy these oliers at the moment, the trend is obviously down for AUT, EKA, TXN and HOG. the volume n some of these stocks is terrible. The general market seems to be very edgy with more downside to come i suspect. I hold most of these oilers and are starting to become a little concerned. If i was buying i think theres more downside to come. ONly my Opinion.


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## Assasin (29 April 2011)

Magic Man said:


> Im not sure how anyone can buy these oliers at the moment, the trend is obviously down for AUT, EKA, TXN and HOG. the volume n some of these stocks is terrible. The general market seems to be very edgy with more downside to come i suspect. I hold most of these oilers and are starting to become a little concerned. If i was buying i think theres more downside to come. ONly my Opinion.




Magic, I think time to switch your computer off, and go for a stroll on this beautiful day, (in Victoria anyway).
The rate these stocks went up over the past 6 months had to slow down and consolodate while in the meantime our companies have been doing a great job adding value and profits ready for the next sp surge.
Plus a bit of volalility and nervousness around adds to some jittery holders.
Sell if you have to or buy if you can.


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## adobee (2 May 2011)

Magic Man said:


> Im not sure how anyone can buy these oliers at the moment, the trend is obviously down for AUT, EKA, TXN and HOG. the volume n some of these stocks is terrible. The general market seems to be very edgy with more downside to come i suspect. I hold most of these oilers and are starting to become a little concerned. If i was buying i think theres more downside to come. ONly my Opinion.




IMO its substanially better buy than a month ago EKA 44c AUT 3.10 ish when everyone was gungho for the next leg up..   I like value of EKA round 30c


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## Sharejon (3 May 2011)

You know the saying, buy when everybody is selling and sell when everybody is buying. It has some substances actually, even though it sounds a bit iffy.

I don't know why EKA is so unloved at the moment. Great value in my opinion, because for some reason I'm confident we'll get surprising results from the Fayette well.

Not that any fayette acreage has been factored into the share price...............

I don't really see the point of selling now, just personally. The stock has been punished severely, people don't like the more risky approach EKA is taking with the new acquisition. Hopefully successful Fayette results will change the sentiment.


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## jancha (3 May 2011)

Sharejon said:


> You know the saying, buy when everybody is selling and sell when everybody is buying. It has some substances actually, even though it sounds a bit iffy.
> 
> I don't know why EKA is so unloved at the moment. Great value in my opinion, because for some reason I'm confident we'll get surprising results from the Fayette well.
> 
> ...




My personal take on EKA's sp is due to lack of media,announcements & in general forum talk. Share holders interested in the EFS play would have seen AUT rise due to it's listing on the ASX 200 ect. and followed it thru with good profits over the year. Facts and figures are brought up quite often with likes of AUT TXN SSN SEA.
 EKA has little information brought forward in comparision.  When i look Huntleys analyst chart they have EKA at it's highest rating for Best Growth & Value over all those companies mentioned. Does anyone know as to how they calculate their ratings?
Anyway it seems there's little talk going around about EKA and i feel that interested buyers in the EFS have jumped on to the more talked about and popular companies.
If Huntley's has EKA at Best Value & Growth when they were 44c why are they trading at a low 30c?? They just dont seem to be loved.
I realize that all the other companies are suffering atm but not as bad EKA.


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## Sharejon (3 May 2011)

I only saw today that AKK bought Burleson acreage (5000 acres of it) at $400 an acre I believe.

It's in very close proximity to where we got ours (although ours is part Burleson part Washington) but I'm very intrigued as to why EKA could not get a better price on that acreage.


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## jancha (17 May 2011)

jancha said:


> How many do you want?
> I wouldn't be too happy if the sp falls below 31c. Next resistance level is 27c.
> Currently as low as 31.5c today




Well it's at the next resistance of 27c and not at all too happy about it.
Little interest atm. Only a handful of buyers now.
Adobee..Hope you didn't jump in at 35c!!


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## nioka (18 May 2011)

jancha said:


> Well it's at the next resistance of 27c and not at all too happy about it.
> Little interest atm. Only a handful of buyers now.
> Adobee..Hope you didn't jump in at 35c!!




EKA doesn't understand charts and resistance levels. I've decided I dont understand its language any more so it will have to be back top fundamentals. They haven't changed much so where to from here? Anybody have an answer?


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## basilio (18 May 2011)

Little is making sense at the moment. Certainly EKA should be much higher based on it's  shale opportunities.  But equally I have been watching ( in disbelief !) as my pet HOG falls to what seem to be ridiculous levels.  Yet it is already producing a handsome return and within 6 months has strong prospects of at least a 400% increase ! .

Scary part is the market has not really tanked as such. If we get some ugly news from Europe or America and the market really gets scared where is the bottom?  Do we simply sell now and wait for an even better buy in ?


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## tradefill (18 May 2011)

every day down down down grrrr. For some reason most the players aut, sea, txn, hog, eka etc are going down when little (that i no of) has changed. Don't understand it at all!


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## bennywizard (18 May 2011)

tradefill said:


> every day down down down grrrr. For some reason most the players aut, sea, txn, hog, eka etc are going down when little (that i no of) has changed. Don't understand it at all!




The only thing that makes sense to me is the fall in the USD and the potential for it fall a great deal more, especially if it is no longer the international currency. China is getting stronger and stronger and the US is in big trouble, up to their eyeballs in debt.

What I dont think anyone quite understands is what it all means for our oil stocks.
Will oil crash to uneconomic levels EG 50Barrel?  (if the US dollar really tanks)
If this happens and China and India remain strong will oil be valued in another currency?
I have no idea but I do think these sorts of questions are the ones that are causing the prices we are seeing in oil stocks. Its certainly not bad management or drilling results.
Love to hear others thoughts on this.


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## Suers (18 May 2011)

I would have imagined that the carbon tax commotion would be weighing heavy on share prices at too. It's making the companies appear unclear as to where their futures are headed causing some investors to sideline until the fog clears.

Keeping costs competitive on an international level will be harder when other countries can produce energy/fuel without the additional tax included. 

I'm probably way off though, just happy I didn't buy yesterday.


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## jancha (19 May 2011)

Good to see a bit of interest in the thread at least.
EKA up 7% today on low volume as all ESF interests across the board.
Suers: I didn't think the Carbon Tax would have any bearing on EKAs sp as they don't operate in Aust. Is the USA bringing out Carbon Tax?
Bennywizard: I thought that if the US Dollar falls the price of oil rises. Wouldn't that balance things out?


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## martyfar (30 May 2011)

Nice ta see a bit of support for the   "Ã¼nloved" litle oiler (EKA)... perhaps the tide is turning ... at one stage we were at a ratio of 12/1 with big brother AUT, (down to about 10.8 /1 today)  Great one day volume traded last week in excess of 1.5m shares - not quite sure why ?.  Should be getting an anouncement about Blackjack Springs Unit #1H in the very near future.........anyone have an opinion as to when ??  a good result might  be just the catalyst needed to get the share price movin forward at a pace of knots  ...


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## Harvestar (1 June 2011)

Good to see some large volumes being traded in the past few days, and the SP has reacted positively.

Hopefully this is the start of something big!


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## Dukey (6 June 2011)

Harvestar said:


> Good to see some large volumes being traded in the past few days, and the SP has reacted positively.
> 
> Hopefully this is the start of something big!




Rare day off today so some time to review investments....

Next few weeks could be very Interesting for EKA as the first well at its Pan de Azucar Eagle Ford Shale project - _Black Jack Springs_ Unit _1H_ - should reach target depth very soon - followed by frac in the following weeks.  With luck and good results - and coming on top of the confidence boosting arrival of Marathon into Sugarloaf AMI - this well could see EKA looking very good for the forseeable future...  (IMO). 

Waiting with baited breath ... !

link :  http://www.ogfj.com/index/article-d...eople/energy-players/eureka-energy_names.html


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## Sdajii (6 June 2011)

I hope you're right, and we might get a bit of increased interest and some positive movement in anticipation of results when the well is at depth and we're told it has been fracked (fracced? Fraced? Is frac actually a real word? Fractured...) but I don't expect any serious movement before actual flow results are released. That could be a big game changer... potentially either way, but I'm guessing it'll be positive to a greater or lesser extent. Happy to be proven wrong with good movement earlier.

We're still AUT's little brother, and our big brother seems to be getting proportionately more attention than us. In my opinion, being in AUT's shadow has left us undervalued relative to AUT; we're smaller than something else so people have ignored us, but that may have left us with more value per dollar by current prices. I think has been the case for a while, but even more so now that the little brother is largely on unproven land (naturally, that depends on how good the land turns out to be). People hate uncertainty, so good results will really have the potential to give us a strong confidence boost which would be reflected in the SP. Look back and see what has happened before with AUT, EKA, ADI and others when their land has been proven. Let's hope we see something similar again with EKA's land! Could be brilliant!

Disclosure: Holding (since over a year ago with top ups all along the way).

And don't get me wrong, I like AUT too and have been holding for over a year, also with top ups along the way. I think AUT has a fair bit of growth to come over the next 6-60 months, but EKA has the potential for more... more risk and potentially more return. I'm happy to be holding both 

Disclaimer: I'm just a n00b, my 2c may not be worth listening to


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## bbker (6 June 2011)

Since we're comparing to big bro AUT, does anyone know what the overall NETT boepd figure Eureka has?


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## Dukey (6 June 2011)

bbker said:


> Since we're comparing to big bro AUT, does anyone know what the overall NETT boepd figure Eureka has?




Damn good question BBKER....  can't find that data in their reports but we can have a go at calculating a rough estimate....

Attachment below is from the EKA March Qtr report here:
http://www.eurekaenergy.com.au/docs/2011/EKA20110429_2.pdf

Rough calculations: Using these conversion tools [ http://www.questoffshore.com/Home/ConversionCalculator/ ]

[Condensate ~268 KBOE + gas~215.5 KBOE ] / 890 well-days = Av of 0.543 KBOE/well/day = Average of 543 BOE per well per day.

They have 11 wells listed there - so that would be  11 x 543 = 5975 BOE/day (this is -gross - ie. spread across all parties). 
 multiply by ~ 6.25% WI for EKA..... 
and we get production rates of about 373 BOEPD Net to EKA... as at end of March.



... which is why they are the smaller cousin of AUT  , but those figures will increase.

Also shows the importance of the new black jack well results to EKA - with 100% WI right next door to the new well - the results will be very important for EKA prospects.

(** NOTE ** please check my figures - they are very approximate - at best... and  may contain errors as I'm not doing this stuff all the time).

- Dukey...


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## martyfar (6 June 2011)

Seeming we're comparing EKA to AUT...EKA presently trading at 31.5c  Aut trading presently at $3.35.  

In their Investor Presentation p9 EKA stated Paterson's valuation of their Sugarloaf acreage (1500 acres) at $126m. Using this valuation and applying to the 15,000 acrees AUT have in the sugarloaf it comes to $1.26billion (being mindful that all of AUT's acreage is potentially as "sweet" as the acreage that EKA and AUT jointly share).... this values AUT at $1,26B or $3.07 per share..... AUT currently trading at a 7.7% premium to this price.  
EKA have projected a share price (given Paterson's valuations) of 62c per share, (adding Pan de Azucar and Brioche basically at cost)  Doing the sums and adding the 7.7% premium built into the AUT share price, it would seem reasonable that EKA could potentially  be valued at not 62c per share , but 64.5 c per share

On fundamentals alone there seems no valid reason why the EKA share price is not 64.5 right now....TODAY !! ........... oooooh for a positive change in sentiment (ta light the fuse)


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## bbker (6 June 2011)

Thanks Dukey and martyfar

Yep your figures look close enough; going by the chart a quick calculation using just the oil gives 821595/2321 = 353 bopd

Which well are you  referring to when you write the new well next to the  Black Jack well?


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## Dukey (6 June 2011)

bbker said:


> Thanks Dukey and martyfar
> 
> Yep your figures look close enough; going by the chart a quick calculation using just the oil gives 821595/2321 = 353 bopd
> 
> Which well are you  referring to when you write the new well next to the  Black Jack well?




Sorry - not talking about a new well - just that - unless i'm mistaken - the current blackjack well is not in the acreage that EKA holds at 100%. but it is right next to it - so will give  a good indication what is over the fence in EKA's 100% holding. EKA may have a small % of the blackjack well currently drilling i think - not sure exactly.


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## bbker (6 June 2011)

Dukey said:


> Sorry - not talking about a new well - just that - unless i'm mistaken - the current blackjack well is not in the acreage that EKA holds at 100%. but it is right next to it - so will give  a good indication what is over the fence in EKA's 100% holding. EKA may have a small % of the blackjack well currently drilling i think - not sure exactly.




Yes 9.4%


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## martyfar (8 June 2011)

Gotta be a sign of good things ta come ... EKA Director Ian Cubbing purchased 300,000 EKA shares @ 36c per share ($108,000)  on the 2/6/11.... if I was going ta spend $108,000 of my hard earned dosh I'd wanna be confident that I was making an informed decision based on a sound investment rationale


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## Sharejon (27 June 2011)

I've been reading some comments local land owners in the area, that obviously have a large interest in the Blackjack/Flatonia well results.

"Drove over to Blackjack Springs - loads of activity. Never seen a fracking op before but I've never seen so many tanks and trucks. Is that what is going on there?"

This was followed by a very knowledgeable O&G poster confirming that this should mean they'll be starting very soon, with the fraccing taking a minimum of 4 days.

I bought more EKA shares at these prices, it was too good to refuse. I think the Blackjack results will speak for themselves, yet obviously the market tends to differ.

I'm extremely surprised at how cheap these shares are at the moment. EKA has a world-class asset in it's Sugarloaf interest to it's not like it's backed on speculative oil plays.

A firm asset-base with exploration upside is a great combination for this stock in my opinion.


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## jancha (5 July 2011)

Eureka is pleased to provide an operations update on the Blackjack Springs Unit 1H, the first well at its Pan de Azucar Eagle Ford Shale project in Fayette County, on‐shore Texas USA. As per the latest Operator reports, multi‐stage fracture stimulation operations have commenced on the well. It is intended to undertake a 16 stage frac over an approximate 6,000 ft horizontal section of the well. Eureka will provide a further update following the fracture stimulation and once the well has been cleaned up. The Blackjack Springs Drilling Unit is a 916 acre pooled unit to which Eureka has contributed 86 acres for its 9.4% working interest. The unit is immediately adjacent to the remaining 675 acres (EKA WI 100%) that make up the balance of the Pan de Azucar project.

With good results anticipated from the Blackjack well EKA should have a renewed interest.


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## Sdajii (5 July 2011)

Very exciting times! 

It was good to see a positive response today, but I think the real action will happen when/if the production rates are good. I'm pretty confident, and very hopeful. The market is so wary of unknowns; having solid data and results to go on should really make a big difference. In if the new land is only 'fairly good' it will no longer be a complete unknown and should have people feeling more comfortable. At 25-26c recently I was very very tempted to buy some more, but I'm already holding a heap (most of it for around a year), so reluctantly decided against it. I'd have been buying in if I wasn't already holding a stack.


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## yma (5 July 2011)

jancha said:


> Eureka is pleased to provide an operations update on the Blackjack Springs Unit 1H, the first well at its Pan de Azucar Eagle Ford Shale project in Fayette County, on‐shore Texas USA. As per the latest Operator reports, multi‐stage fracture stimulation operations have commenced on the well. It is intended to undertake a 16 stage frac over an approximate 6,000 ft horizontal section of the well. Eureka will provide a further update following the fracture stimulation and once the well has been cleaned up. The Blackjack Springs Drilling Unit is a 916 acre pooled unit to which Eureka has contributed 86 acres for its 9.4% working interest. The unit is immediately adjacent to the remaining 675 acres (EKA WI 100%) that make up the balance of the Pan de Azucar project.
> 
> With good results anticipated from the Blackjack well EKA should have a renewed interest.




any idea about when we can get the result?


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## jancha (6 July 2011)

yma said:


> any idea about when we can get the result?




Shouldn't be too far off yma.
A positive is EKA sp price is starting to claw it's way back up. No real volume but at least no one selling at this stage. Market waiting on results of Blackjack.


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## yma (6 July 2011)

jancha said:


> Shouldn't be too far off yma.
> A positive is EKA sp price is starting to claw it's way back up. No real volume but at least no one selling at this stage. Market waiting on results of Blackjack.




HOG is going to have its result on August, result from EKA for Blackjack is coming as well, i am so exited about it as i bought in at 26c(Switch from AUT). 

waiting for them for sky rocket.

I am currently holding EKA, HOG and SEA.


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## jancha (7 July 2011)

Excellent results from the two wells GeoResources have in Flatonia East only 10kms southeast of the Pan de Azucar area. Also with GeoResources contracting the installation of a gas pipeline running thru the area gives EKA something to smile about. 
Blackjack springs and the Pan de Azucar area are looking even better now with those results. Sp now 31c still half of it's value sp by Pattersons of 62c before Pan de Azucar.


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## jancha (8 July 2011)

An increase in volume today showing signs of more interest with the sp working it's way back to where it (imo) should be. Good signs for a good result for Blackjack Spings.
 All aboard


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## Sharejon (12 July 2011)

Hey all,

I've cleared up a few additional things from that AKK report regarding the depth of the Brioche Project and how it compares geologically to AKK's project.

First of all I got puzzled by the AKK statement "In the AKK lease area the depth of the eagleford is 8200-8900 feet" (with their initial acquisition announcement stating 8000-12000)

And EKA's statement that the Brioche acreage "ranges in depth from 10,500 to 12,000 feet and displays the geological prerequisites seen in our existing Eagle Ford project areas" so I had a further look into it.

I was well aware that the depth of the Eagle Ford Shale differs substantially in certain areas, however it seems I under-estimated just how greatly it can differ!

As seen in this image (of AKK's Burleson acreage), the EFS can dip quite steeply over a short interval.

http://imageshack.us/photo/my-images/18/picture2th.jpg/

(page 67-69 of the AKK Resource Evaluation announcement)

Here's a map of EFS well depths 

http://info.drillinginfo.com/urb/eagleford/files/2010/08/Depths.png

This bodes well for EKA holders as technically the '10,500-12,000' feet deep wells should out-perform the shallower EFS wells, assuming that the other drilling/fraccing methods and conditions are constant.

So in other words AKK who are drilling 3 Burleson wells (commencing in July, with 1 of those 3 wells being horizontally drilled and fracced using the 'Hi-WAY' method) will give us a good sniff at what is down there, however I assume that our wells should 'technically' have greater production potential than their shallower wells (assuming the drilling/fraccing practices are the same). It will be very interesting to see their results in the area.

*note I'm only referring to the 915 acres AKK have acquired which were used in the study, not the other 4,000 acres in the area which they've got rights to. I don't think it's quite been announced where these leases are located in comparison*

Here's what a Geologist who posts on an Eagle-Ford Shale lease forum (going out of his way to provide some info to land-owners) stated which relates to eagle-ford depths.

"There is beginning to be some concensus that being at or near the oil/gas contact (but still in the oil "window") at deeper depths, is where the better wells are being made because the gas to oil ratio is higher and the estimated recovery rates per well are higher because associated gas keeps oil moving towards the wellbore. Some folks are beginning to see that updip wells at shallower depths don't have high GOR and won't have good recovery rates. Clayton Williams drilled some horrible shallow, updip wells and has taken all his drilling rigs out Burleson County, etc. back to W. Texas."

Credit goes to "Mike" whose original post can be found here http://www.mineralrightsforum.com/f...tivity&id=4401368:Topic:3525&page=65#comments

Hopefully this may clear a thing or two up for you as well.

Enjoy.


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## Sdajii (12 July 2011)

Thanks for sharing your research, Sharejon. Very much appreciated as always.

A bit of gas to help migration, pressure etc. makes perfect sense, but what's the explanation for deeper wells being better?  Not doubting you at all, I'm just interested in the geology. Is it that the oil tends to settle in the lower bits, sort of like giant underground puddles?

I'm biting my nails waiting for Brioche production reports! Drill baby, drill!


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## Sharejon (31 July 2011)

Sdajii I wish I had the answer for you!

I too am very keen to see Brioche production reports, or reports from current Horizontal fully fracced wells in neighboring land!

I think the Fayette is experiencing a fair bit of leasing at the moment, so once more leases are purchased by companies then its basically a given that we'll be seeing more leasing activity more towards the North-East.

Once this happens maybe EKA are in a better position to do a similar lease pooling agreement, like they've done with Southern Bay Operating.

Southern Bay Operating have been fantastic partners so far, it'd be brilliant if we could combine our Fayette land with them. Or even better purchase a stake in their Fayette land, and have them as our JV partners!


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## yma (31 July 2011)

what are you thought of the announcement out on Friday? Share price down, but i would say it is because of the US problem


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## Sdajii (9 August 2011)

Uh oh! Trading Halt! Do I smell a takeover?   

I don't want to sell out for less than 80c, but I'm sure they'd easily get us for under 50, and possibly under 40... just maybe under 30c at the moment. If it is a take over bid, let's hope we can fight it off, or at least hold out for a decent price.

I doubt it's capital raising... any other thoughts?


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## yma (9 August 2011)

Sdajii said:


> Uh oh! Trading Halt! Do I smell a takeover?
> 
> I don't want to sell out for less than 80c, but I'm sure they'd easily get us for under 50, and possibly under 40... just maybe under 30c at the moment. If it is a take over bid, let's hope we can fight it off, or at least hold out for a decent price.
> 
> I doubt it's capital raising... any other thoughts?




For my understanding the trading halt is for Blackjack result announcement.


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## Sdajii (9 August 2011)

Ah, that sounds much nicer  A friend of mine just told me the same thing  I hope it's good and wish we were getting it during a nicer time.


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## yma (9 August 2011)

Sdajii said:


> Ah, that sounds much nicer  A friend of mine just told me the same thing  I hope it's good and wish we were getting it during a nicer time.




It is actually not a bad thing to have trading halt with the current market sentiment, hopefully we will have some positive news from America tonight about QE3, beside the global market, EKA has 100% WI for blackjack, hope it will be a good result.


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## AngusSmart (9 August 2011)

Was so glad to see it in a halt this morning, but also since the markets recovered somewhat am a little peevedd..

why would they have gone into a halt over 1 well?? is it producing yet? i thought it was already announced in the previous quarterly, tho my minds all over the shop at the moment..

i am a little  as to why they have gone into a halt over the well, since they dont usually do that..


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## dazby (9 August 2011)

Good afternoon,

Please see below announcement from GeoResources, Inc. (the operator of EKA's the Blackjack Springs #1H well) released this morning re: their financial & operating results for the quarter ended June 30. Of particular interest, is the information re: the Blackjack Springs #1H well.

Eureka Energy is in trading halt, pending ASX release to market re: Blackjack Springs.  


HOUSTON, Aug 08, 2011 (BUSINESS WIRE) -- GeoResources, Inc. /quotes/zigman/72652/quotes/nls/geoi GEOI +0.74% , today announced its financial and operating results for the three and six month periods ended June 30, 2011. Highlights for the second quarter 2011 include: 
-- Initiated successful commercial production operations on its first three wells in its Eagle Ford project area in Fayette County, Texas 

-- Continued the successful development and de-risking of its Bakken operated project area in Williams County, North Dakota with the completion of the Muller 1-21-16H 

-- Generated Adjusted EBITDAX(1) (non-GAAP) of $20.1 million in the quarter, a 21% increase over the second quarter 2010 and a 11% increase over the first quarter 2011 

-- Generated Adjusted Net Income(1) (non-GAAP) of $7.9 million in the quarter, a 29% increase over the second quarter 2010 and a 9% increase over the first quarter 2011 

-- Generated Diluted Adjusted Earnings Per Share(1) (non-GAAP) of $0.31/share for the quarter 

-- Ended the quarter with $193 million in Liquidity(1) (non-GAAP) 





Operational Update 

Eagle Ford GeoResources recently completed its third well in its Eagle Ford project area, the Black Jack Springs #1H (44.1% working interest ("W.I.")). This well was drilled with a 5,900 foot lateral and was completed with 16 frac stages. This well averaged 460 boe/d of production over an initial 10 day period while being produced on a restricted choke of 14/64" to 16/64". The Black Jack Springs well is located further northeast in the Company's acreage block and therefore further de-risks the Company's Eagle Ford acreage. The table below summarizes the production data through early August from the Company's first three Eagle Ford wells which are still flowing up the production casing. 


                                  Lateral   # of    Avg. Daily Production (Boe/d)(1)              Current
                                                    ---------------------------------
                                  Length    Frac      First                             Current  Pressure
                                  (feet)   Stages    30 Days               Current       Choke     (PSI)
                                 -------   ------   --------           -------------   -------   --------
        Flatonia E #1H             3,200       10        391                     244    24/64"        225
        Flatonia E #2H             4,800       14        465                     413    14/64"      1,050
        Black Jack Springs #1H     5,900       16        390    (2)              358    18/64"        650




(1) Excludes non-producing days and initial "flow-back" days when well was cleaning up and producing frac fluid. (2) Represents average daily rate for first 22 days of production. 

GeoResources is currently preparing to drill its fourth Eagle Ford well in Fayette County, the Peebles Unit #1H (39.8% W.I.), which is anticipated to have an approximate 5,000 foot lateral. The Company has identified a second rig for its Eagle Ford project and this rig could begin drilling operations early in the fourth quarter.

This follows the previous successful wells in the area.  



  Please see below release from July 06, 2011.

GeoResources, Inc. Provides an Operations Update 
HOUSTON--(BUSINESS WIRE)--GeoResources, Inc., (NASDAQ:GEOI), today provided an operations update. 

“2,525 Flatonia E Unit #2H ~4,800 14 50.0 % 1,242 480 16/64”

EAGLE FORD 

We recently successfully drilled and completed our first two Eagle Ford wells in our operated project area in Fayette County, Texas. The table below provides an overview of production results to date from these wells: 


Eagle Ford - Well Summary  
                Initial Production Data  
  Lateral
Length
(Feet)   # of Frac
Stages   GEOI
Working
Interest   Daily Oil
Rate
(Bbl/d)     Daily Gas
Rate
(Mcf/d)     Choke     Pressure
(PSI)  
Flatonia E Unit #1H   ~3,200   10   50.0  %   1,204   420   18/64"   2,525  
Flatonia E Unit #2H   ~4,800   14   50.0  %   1,242   480   16/64"   2,850  


Although we initially produced these wells on the larger choke sizes indicated in the table above, both the Flatonia East Unit #1H and #2H have been flowing on restricted chokes of 12/64” and 10/64”, respectively, since first production. We have intentionally restricted production rates on these wells as we believe that producing on restricted chokes and at lower rates will reduce decline rates and optimize reservoir performance. Excluding the higher initial daily production rates above, the Flatonia East Unit #1H and #2H have averaged 487 and 495 barrels of oil equivalent per day (converting gas at 6 MCF = 1 BO) over the first 14 and 12 days of production, respectively, with average gas-oil ratios of 700 to 800 cubic feet of gas per barrel of oil. Although, gas is currently being flared from these producers, we expect to connect these wells to a gas sales line within the next 60 days as we have recently signed contracts with a purchaser who is installing a gas pipeline through our project area. 

We also recently completed drilling our third Eagle Ford well, the Black Jack Springs #1H well, in which we have a 44.1% working interest. This well was drilled with a ~5,900 ft. lateral and is currently undergoing a 16 stage frac job. After drilling the Black Jack Springs #1H well, the drilling rig was moved to drill the West Cannon Unit #1H well in our Giddings Austin Chalk Field development area in Grimes County. The West Cannon well is currently drilling and should finish within the next few weeks. We expect this well to be an “oily” Austin Chalk producer, with strong economics. After drilling the West Cannon Unit, the rig will return to our Eagle Ford project in August 2011 and will continue drilling Eagle Ford wells. 

Since April of 2010 we have acquired 24,000 net acres in the Eagle Ford Trend with acreage primarily located in southwest Fayette and northern Gonzalez counties. Our plan is to add a second dedicated drilling rig in the fall of 2011 and a third rig in early 2012 and potentially a 4th rig in mid-2012. Our intent is to significantly accelerate our Eagle Ford drilling in the second half of 2011 and into 2012. As we move forward in our development of this project area, we expect each of our operated rigs to drill 8-10 gross wells per year.


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## AngusSmart (9 August 2011)

just thought i'd track the report down and post the image as the text got warped from the guys post above..

cheers for the info however!


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## jancha (27 August 2011)

Very quiet on the EKA front of late. Floundering unloved and unwanted stock of 21c atm!
Hard to believe that EKA has dropped 100% over the last few months. Thats the same as AUT dropping to $1.50!
Just goes to show that EFS hype is calming down and monies has moved else where. No point having money sitting in a company thats stagnant and looks like it will be for awhile. Even good results and potentials from Black Springs announcement couldn't lift the sp.
It has the highest growth & value from Morningstar analyst and is valued at 60c+ by a broker but other than a T/O bid i cant see it coming back to life in the current market.
Disappointed with EKA and for now but one i'll be watching for when the market comes back with confidence.


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## jancha (7 September 2011)

jancha said:


> Very quiet on the EKA front of late. Floundering unloved and unwanted stock of 21c atm!
> Hard to believe that EKA has dropped 100% over the last few months. Thats the same as AUT dropping to $1.50!
> Just goes to show that EFS hype is calming down and monies has moved else where. No point having money sitting in a company thats stagnant and looks like it will be for awhile. Even good results and potentials from Black Springs announcement couldn't lift the sp.
> It has the highest growth & value from Morningstar analyst and is valued at 60c+ by a broker but other than a T/O bid i cant see it coming back to life in the current market.
> Disappointed with EKA and for now but one i'll be watching for when the market comes back with confidence.




Seems to have found its resistance level at 21c. Just wondering what its next resistance level would be if the euro situation gets worse. Where's that chrystal ball of mine.


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## Sdajii (7 September 2011)

jancha said:


> Seems to have found its resistance level at 21c. Just wondering what its next resistance level would be if the euro situation gets worse. Where's that chrystal ball of mine.




I assume you mean support. I just can't see it going much below 20c unless we see utter global catastrophe. If it does (and not because of catastrophe) I'll be buying as much as I can afford. I'm really puzzled by EKA at the moment, it just seems too ridiculous a bargain, the assets we have are too valuable for the current price to make sense. Perhaps I just don't know how to analyse things.


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## jancha (16 September 2011)

Sdajii said:


> I assume you mean support. I just can't see it going much below 20c unless we see utter global catastrophe. If it does (and not because of catastrophe) I'll be buying as much as I can afford. I'm really puzzled by EKA at the moment, it just seems too ridiculous a bargain, the assets we have are too valuable for the current price to make sense. Perhaps I just don't know how to analyse things.




Looking at the market today you may get your chance to buy under 20c. Just the market being unsure atm is enough to bring it down so you dont need a catastrophe. Hardly any buyers and the sellers are wishing to get out into something more productive imo. EFS has always been driven by news & hype. Now that it's quieten down so has the sp. EKA also have leased land that hasn't been proven yet. Maybe thats has something to do with its sp but the likes of all in the efs have taken a hit. If goes below 20c i'll be joining you and putting in the bottom draw for ron.


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## Assasin (16 September 2011)

Jancha,

How much good news do you want? Announcements have been coming consistantly and are extremely good.
Now the SP, well that's another story. Has to be one of the most undervalued company around.
Just my thoughts.


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## jancha (16 September 2011)

Assasin said:


> Jancha,
> 
> How much good news do you want? Announcements have been coming consistantly and are extremely good.
> Now the SP, well that's another story. Has to be one of the most undervalued company around.
> Just my thoughts.




A lot of undervalued companies around. Have you heard the story about the boy coming home from school with an assignment of finding out the difference in meaning  between the two words of potentially and realistically?


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## Assasin (16 September 2011)

jancha said:


> Looking at the market today you may get your chance to buy under 20c. Just the market being unsure atm is enough to bring it down so you dont need a catastrophe. Hardly any buyers and the sellers are wishing to get out into something more productive imo. EFS has always been driven by news & hype. Now that it's quieten down so has the sp. EKA also have leased land that hasn't been proven yet. Maybe thats has something to do with its sp but the likes of all in the efs have taken a hit. If goes below 20c i'll be joining you and putting in the bottom draw for ron.




Jancha, upon reading your post again, you state that the EFS has quietened down. This is way off, check out recent well results from not only EKA but AUT and TXN as well. Check out the ramping up of drilling programs for EKA and AUT now that Marathon are about to take up the reigns.
But against that, check out the market. It's crap, with POO dropping and investors quite reasonably sitting on their hands.
Value is being added to EKA rapidly with plenty going on. I'll repeat, very under valued.
What is the difference between potential and realism???


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## jancha (21 September 2011)

Assasin said:


> Jancha, upon reading your post again, you state that the EFS has quietened down. This is way off, check out recent well results from not only EKA but AUT and TXN as well. Check out the ramping up of drilling programs for EKA and AUT now that Marathon are about to take up the reigns.
> But against that, check out the market. It's crap, with POO dropping and investors quite reasonably sitting on their hands.
> Value is being added to EKA rapidly with plenty going on. I'll repeat, very under valued.
> What is the difference between potential and realism???




Sorry not so much about the news as you said all good but i meant more the Hype with EKA and the efs.
Someone wasn't sitting on their hands and sold down 550,000 EKA shares today. Getting close to the next support.

Difference?
A boy comes home from school with an assignment using the different meaning of the two words potentially & realistically in a sentence. He asks his father for help on it so his father tells his son to asks his mother if she would sleep with Robert Redford for a Million $ and then having done that ask your older sister if she would sleep with Brad Pitt for a Million $. Once you've done that come back to me.
So off goes the little boy and asks his mum would she sleep with Robert Redford for a mil. She replies quietly: dont tell your father but yes i would.
Little boy goes up the stairs to sisters room scratching his head and asks if she would sleep with Brad Pitt for a mil: Are you kidding of coarse i would she says.
The boy goes back downstairs to his father looking a bit confused.
Well son what did they say? His son tells him and his father replies
You have the answer.
Potentially we're sitting on a gold mine but realistically we're living with two s----.

Sorry doesn't have anything really to do with EKA other than potentially it's worth more but realistically atm it's 20c.


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## Assasin (21 September 2011)

Well done Jancha, thats a beauty.
At the moment I think your right.


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## mattyhammer (26 September 2011)

Jancha - BAHAHA, that's awesome!

EKA is easily my most painful trade ever. Making stacks then bang...just tanks for no reason I can come up with. Killing me!

Anyone got some insight on where this thing is potentially heading?


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## RNI (29 September 2011)

Yes, I do. 
It is all to do with what is going on in the world all around and also to the price of oil. 

The same has happened to aut, txn and the others. People are afraid of what might still happen ie maybe a recession etc and are being cautious. It is not eka, it is outside factors we cannot control. 

When things settle, and it could be quite a while yet, eka and the others will shoot, so good buying opportunities around.
Hope this helps.


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## mrthong (8 October 2011)

meanwhile the mining sector recovers, EKA tumbles. slightly. EKA doesnt seem to move along with its sector. tempting to buy, but will it recover?


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## speculator101 (12 October 2011)

Well.. after watching EKA for 3 years... I have finally purchased a small amount.

At it's current market cap... its basically now just waiting to be removed from the market. ( I base this simply on past experience. i.e. ADI.... )
Under $40 mil market cap is pretty much 1/2 of what was offered for ADI... soo.. 
EKA has approx %50 less value than ADI holdings.

Hmm.. I would assume the only company that would take them over is AUT....

Anyway, surely AUT must look at EKA every week, and laugh... with their huge market cap now.
I stress that EKA only has $5ish million in the bank, but they are making money so hopefully they will not tap the market again.... 
I would be interested to hear from fellow investors if anyone knows of any other company that might be interested in EKA?

IMHO
Good luck to all.


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## yma (12 October 2011)

How about AWE which took over ADI before


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## speculator101 (12 October 2011)

AWE is in a bit of a bind right now, with approx $90mil cash, which is needed for capital works and its shale exploration in WA. So.. unless they do a %100 script bid for EKA.. its no go...  and.. considering their share price has been wallowing at what I believe is bargain basement prices for the past 6 months... I don't think AWE's major shareholders would support it... 
just my 

( just for the sake of Clarity, I personally believe that AWE will sell their former 'ADI' U.S holdings as it is non-core )

Cheers for the first reply though 'yma'.

IMHO of EKA, AWE, BPT, COE, BRU, CTP.


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## Harvestar (13 October 2011)

Does anyone have any update as to why there has been no volume traded in the past 48 hours? I haven't seen any announcements lately to indicate why this is the case......

Any info would be great!


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## yma (13 October 2011)

speculator101 said:


> AWE is in a bit of a bind right now, with approx $90mil cash, which is needed for capital works and its shale exploration in WA. So.. unless they do a %100 script bid for EKA.. its no go...  and.. considering their share price has been wallowing at what I believe is bargain basement prices for the past 6 months... I don't think AWE's major shareholders would support it...
> just my
> 
> ( just for the sake of Clarity, I personally believe that AWE will sell their former 'ADI' U.S holdings as it is non-core )
> ...




My average price for EKA is 28c, compare to AUT EKA should have the price well over 50c today, i would happy to wait for the price go up rather than a take over bid.  In 2 years, i believe EKA, AUT, HOG, TXN are all in bargain price, just need more patient.


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## RNI (13 October 2011)

For some reason they are not developing their next well until Q1 2012 so maybe people are getting inpatient. Need to read their last ann again. I am holding on as think it  has great potential, but know the frustration as I am in the same boat.


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## RNI (13 October 2011)

They are still assessing the 1st producing well on the Black Jack Springs area which has the  POTENTIAL to be a  350boe well they are thinking.

Their 1st well on the Brioche acerage is expected Q1 or 2 2012, but could be brought forward.

At the Good Oil Presentation in September 2011 they stated the Sugarloaf acerage ALONE was valued at 58c ps and the latest analysts report value eka at 63c ps, so it is certainly grossly undervalued for sure.


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## Kremmen (18 October 2011)

Harvestar said:


> Does anyone have any update as to why there has been no volume traded in the past 48 hours?



I claim the answer is because people are stupid. 
Today's resource upgrade announcement has been followed by a big spike upwards in SP, against a falling market, yet it was nothing (that should have been) unexpected. Whoever is buying at 22c today should have been buying at 17c a week ago.



RNI said:


> At the Good Oil Presentation in September 2011 they stated the Sugarloaf acerage ALONE was valued at 58c ps and the latest analysts report value eka at 63c ps, so it is certainly grossly undervalued for sure.




There is an obsession by many investors with growth. However, growth is risky. The Sugarloaf area is great. (AUT's wells in other areas have mostly been way worse than their Sugarloaf wells.) EKA receives about as much per share as AUT in Sugarloaf and is mostly just sitting there making money. They will never be a billion-dollar company doing that, but they also won't waste the money they have.


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## jancha (13 November 2011)

Kremmen said:


> I claim the answer is because people are stupid.
> Today's resource upgrade announcement has been followed by a big spike upwards in SP, against a falling market, yet it was nothing (that should have been) unexpected. Whoever is buying at 22c today should have been buying at 17c a week ago.
> 
> 
> ...




I would be more inclined to buy EKA over AUT as it stands in price. Less risk as you've pointed out. EKA has a good growth potential with their other leases. Check out Morning Stars ratings on EKA & AUT. Big difference in their ratings.

Noticed volume in trading up last week with EKA. Hopefully it will start working it's way back up to the 40c range again. Would have thought that EKA at this price of 21c would be looked at as a serious t/o.


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## jancha (15 November 2011)

EKA had a few corrections to make from their presentation. Nothing serious tho. 
Starting to gain a bit support now with higher volume taking out the 23c range.


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## AngusSmart (15 November 2011)

Whats with the late move again today?

nice to check out portfolio at end of day to notice 20% gain in eka..


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## Assasin (15 November 2011)

jancha said:


> I would be more inclined to buy EKA over AUT as it stands in price. Less risk as you've pointed out. EKA has a good growth potential with their other leases. Check out Morning Stars ratings on EKA & AUT. Big difference in their ratings.
> 
> Noticed volume in trading up last week with EKA. Hopefully it will start working it's way back up to the 40c range again. Would have thought that EKA at this price of 21c would be looked at as a serious t/o.




Gee Jancha, I reckon EKA has much more risk than AUT and the SP confirms this especially over the past month. 
I know your not saying that AUT is risky, but if I had to invest 50k of my mum's money then it would be going to AUT not EKA.
EKA is a great little company but very unloved. I wish someone would buy us out and put us out of our misery.


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## Harvestar (16 November 2011)

Any thoughts on yesterday's large jump? 

Is this just a delayed response to last week's announcements..........?


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## estseon (20 November 2011)

Harvestar said:


> Any thoughts on yesterday's large jump?
> 
> Is this just a delayed response to last week's announcements..........?




Though they've not revealed any drilling plan on Sugarloaf for H1 2012, AUT directors, speaking on the 3rd quarter results over the conference call did make reference to some experimental drilling (closer spacing & HiWay fraccing) and Sugarloaf was mentioned. Perhaps they were referring to the drilling revealed in AUT's provisional plan but perhaps they were referring to the as yet undisclosed H1 drilling (if any).

Brioche, in terms of acreage, has the potential to increase EKA's reserves by a multiple and the company has been strongly hinting that they expect good well performance. Only the drill bit can confirm that. But the first step will be to find a neighbour to do a lease swap with. News of that should be positive for the share price.

So there are a couple of things waiting in the wings.


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## jancha (29 November 2011)

EKA AGM out for those die hard fans.
I personally like the Brioche project & looking forward to EKA first drill there in 2012. This is one of those companies that you can put away in the bottom draw and wait for it to boom & zoom. Well i'm hoping anyway
• 4,460 acres (100% WI) in Burleson and
Washington counties
• Eagle Ford Shale average thickness is 250’
and at depths of 10,500 to 12,000 (similar
depth to Sugarloaf)
• The technical work will deliver an initial well 
location to confirm the productivity of the 
Eagle Ford, and test the Austin Chalk
• The well design will incorporate current drilling 
and frac practices from the Sugarloaf acreage, 
which is yet to be applied in the Brioche area
• Eureka’s strategy is to farmout a portion of the 
working interest to manage capital 
commitment
• Currently assessing farmout options
• Targeting to drill first well in 2012


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## Kremmen (30 November 2011)

Assasin said:


> Gee Jancha, I reckon EKA has much more risk than AUT and the SP confirms this especially over the past month.
> I know your not saying that AUT is risky, but if I had to invest 50k of my mum's money then it would be going to AUT not EKA.




I've been thinking about this comment and just can't make any sense of it. On any metric you choose (income, acres, production, etc), EKA is vastly better value than AUT. AUT is much closer than EKA to the price analysts reckon it's worth. The only advantage AUT has is pure size and therefore liquidity and being in the ASX 200.

Whether it was my money or your mum's, I'd be putting it into EKA.


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## mattyhammer (1 December 2011)

I'm no charting expert, but I'd be willing to bet EKA makes a directed line north very soon. Since it's lows 3 months ago at 16c, it has had higher levels of support after each wave. After a decent jump in mid Oct to 22/23c it leveled out to a resistance of 19/20c. The next wave up took us to a high of 25.5c (which was probably a little overbought at that stage) but then has settle back into a range of 20/21c. It's not much, but the momentum is positive. I would bet within the next week we'll see a new, recent, high of around 26/27c....maybe even higher if it becomes 'popular' for a while. Anyway, just speculative opinion and inciting some discussion.
In no way am I a registered professional or recommending anyone adhere to my thoughts. DYOR!


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## martyfar (1 December 2011)

Hey Matty,   I don't think we should lose sight of the FACT that 21.5c for EKA is a ridicioulosly low price and shouldn't be condoned by any level of acceptance on the part of ÃœS the shareholders. Don't lose sight of the share's fundamental value when directly compared to AUT's Sugarloaf acreage (arguably $80,000 per acre), these are the EXACT same acres held in partnership with EKA.  Doin the sums :  EKA holds 1500 Sugarloaf acres ... 1500 acres x $80,000 = 120,000,000...   divide    $120,000,000 by the number of shares EKA currently has on issue 237,000,000 and you get a share price of  50.6 c per share.  

This share price absolutely ignores (and '*doesn't * include) the other 5,000 or so acres EKA holds in the Eagleford Shale, neither does it include the 5 mil EKA has in cash.  

Now it may be fair enuff to grant AUT a bit of a premium related to being listed on the ASX 200,  and the fact that it has a higher market capital, and greater daily volumes,   but even when all that  is taken into account 21.5c for EKA is well well below what its fundamental value and common sense would dictate.

I am not a ramper !!!  but folks this share IMO  has a huge, as yet not understood or acknowledged, potential to the upside 


Disclosure :  hold both EKA and AUT


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## Assasin (5 December 2011)

Kremmen said:


> I've been thinking about this comment and just can't make any sense of it. On any metric you choose (income, acres, production, etc), EKA is vastly better value than AUT. AUT is much closer than EKA to the price analysts reckon it's worth. The only advantage AUT has is pure size and therefore liquidity and being in the ASX 200.
> 
> Whether it was my money or your mum's, I'd be putting it into EKA.




So how has that worked for you over the past 18,12,6 months Kremmen. Do you not like your mother.
Best you find something else to think about. At least you didn't call me a liar this time.
Absolute whackjob.


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## Sdajii (5 December 2011)

Assasin said:


> So how has that worked for you over the past 18,12,6 months Kremmen. Do you not like your mother.
> Best you find something else to think about. At least you didn't call me a liar this time.
> Absolute whackjob.




I think Kremmen (or 'absolute whackjob' as you put it) was talking about investing his or his mother's money in EKA now, rather than 18, 12 or 6 months ago. It makes sense with the massive disparity in value compared to AUT, which wasn't the case 18 months ago. All companies have periods where they go down in share price followed by going up again. Before AUT's big climb starting last year you could have said investing there was a bad decision because it had gone down before then. Strange to call someone an 'absolute whackjob' when they say they'd prefer to invest in one company rather than another when it is hugely and clearly undervalued relative to the other.

Call me an absolute whackjob too, 'cause I've been selling AUT and buying EKA over the last few months.


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## jancha (5 December 2011)

Assasin said:


> So how has that worked for you over the past 18,12,6 months Kremmen. Do you not like your mother.
> Best you find something else to think about. At least you didn't call me a liar this time.
> Absolute whackjob.




I think I started this Assasin with my thoughts on EKA being of better value than AUT.
You obviously think otherwise and thats fair enough. Kremmen however has disagreed in turn with you & you have responded rather poorly by calling him a whackjob. I'm sure all of us like our mothers & would have their best interest at heart but personally in respect of % EKA has a better chance of a getting it over AUT. I can see EKA getting back to the 42c before AUT can go to $7.
There must be more to it than Kremmen last post here for you to respond as you have.


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## Assasin (5 December 2011)

Guys, there's a fair bit of history with this clown who's far better than me in throwing out insults.
For the past 10 months posters have had the notion that there would be a better return in EKA than AUT since AUT's big rise, but the fact is it just doesn't materialise.
With AUT's plans for the upcoming 12 months compared to EKA's I'll still back AUT but retain my EKA holding just in case.
Good luck.


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## Kremmen (5 December 2011)

Assasin said:


> So how has that worked for you over the past 18,12,6 months Kremmen.




My investing has worked very nicely in the last 18/12/6 months, as I've had a large investment in AUT. I also sold a pile of EKA at over 40c and bought recently at <=17c.



Assasin said:


> Guys, there's a fair bit of history with this clown




I respond to comments that are posted here on the basis of how I see the investment. If you think I even remember what you've posted in the past, let alone care, you flatter yourself.


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## Joe Blow (5 December 2011)

Assasin said:


> Absolute whackjob.




These kind of personal attacks are not acceptable. Discuss the stock and lay off the insults please.


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## Assasin (6 December 2011)

Joe Blow said:


> These kind of personal attacks are not acceptable. Discuss the stock and lay off the insults please.




Sorry Joe and ASF.

Maybe the culprit may apologise for calling a fellow poster a liar or is that allowed?


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## Harvestar (19 January 2012)

Happy new year all.

Interesting few days, with volumes jumping a great deal lately. Anyone have any assumptions?

Also can someone explain to me why the ASX would ask for a please explain for a price jump? All seems a bit crazy to me....


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## RNI (23 January 2012)

Hope everyone is aware of the great new trend EKA is on. They are working on getting  a debt facility so they can proceed with their plans to drill aggressivily in 2012  with Marathon doing the drilling. If you look at the sell, buy's, ppl are holding onto what stock they have and not selling, below a certain high range. Difficult to get more unless pay higher.

Should know in next days, weeks.


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## philly (4 February 2012)

RNI said:


> Hope everyone is aware of the great new trend EKA is on. They are working on getting  a debt facility so they can proceed with their plans to drill aggressivily in 2012  with Marathon doing the drilling. If you look at the sell, buy's, ppl are holding onto what stock they have and not selling, below a certain high range. Difficult to get more unless pay higher.
> 
> Should know in next days, weeks.




Has anyone really considered how much US$  EKA is going to need to fund its share of this accelerated drilling?
As I read the Dec Quarterly report EKA had US$6.08m in the bank and was getting revenue from first 3 wells that Hilcorp drilled now that it has completerd paying them out.
Going to the market in the current climate for a debt facility / capital raising is no easy feat. Even a SPP whilst popular amongst us may dilute the value of our shares too much.

I am excited but a bit wary as well.
I think EKA is a bit vulnerable ATM
All IMHO and do your own research


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## philly (10 February 2012)

philly said:


> Has anyone really considered how much US$  EKA is going to need to fund its share of this accelerated drilling?
> As I read the Dec Quarterly report EKA had US$6.08m in the bank and was getting revenue from first 3 wells that Hilcorp drilled now that it has completerd paying them out.
> Going to the market in the current climate for a debt facility / capital raising is no easy feat. Even a SPP whilst popular amongst us may dilute the value of our shares too much.
> 
> ...




AUT has just raised US$200m to partly fund the accellerated drilling programme in the Sugarkane. It has other interests in the Eagle Ford so not all of the money will go towards Sugarkane but I guess it may be a tad more that US$6.08m that EKA has in the bank ATM.
IMO management need to get out there or risk missing the bus on this one. If they can't fund the proposed drilling program they need to farm out some of their interest or maybe risk being brought out all together. IMHO both AUT and AWE may be interested.
All IMHO and DYOR


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## mr. jeff (10 February 2012)

I agree and it's not looking great.
Hopefully someone utters "takeover" in the right areas. Not a great idea though holding a stock in that expectation. Based on the chart, have looked for the door.





Hope this helps someone.
Cheers.


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## jancha (15 February 2012)

jancha said:


> I think I started this Assasin with my thoughts on EKA being of better value than AUT.
> You obviously think otherwise and thats fair enough. Kremmen however has disagreed in turn with you & you have responded rather poorly by calling him a whackjob. I'm sure all of us like our mothers & would have their best interest at heart but personally in respect of % EKA has a better chance of a getting it over AUT. I can see EKA getting back to the 42c before AUT can go to $7.
> There must be more to it than Kremmen last post here for you to respond as you have.




EKA getting back closer to 42c.
 AUT much the same as when EKA was 20c.


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## trader8888 (15 February 2012)

philly said:


> AUT has just raised US$200m to partly fund the accellerated drilling programme in the Sugarkane. It has other interests in the Eagle Ford so not all of the money will go towards Sugarkane but I guess it may be a tad more that US$6.08m that EKA has in the bank ATM.
> IMO management need to get out there or risk missing the bus on this one. If they can't fund the proposed drilling program they need to farm out some of their interest or maybe risk being brought out all together. IMHO both AUT and AWE may be interested.
> All IMHO and DYOR




Mid market Eagle Ford drillers have shot at funds -


"By Vicki Vaughan
Updated 10:05 p.m., Monday, February 13, 2012

Midsize oil producers with solid track records in the Eagle Ford Shale will find it easier to borrow money, an expert said Monday at a series of seminars sponsored by the Texas Alliance of Energy Producers.

"A broad range of companies are interested in energy investing," said Bryan Frederickson, managing director at Houston-based GulfStar Group, an investment bank that advises companies with revenue of $15 million to $350 million.

The alliance's conference in San Antonio, billed as "Challenges in the Eagle Ford," had about 150 attendees.

Lenders are competing for midmarket deals, he said, and "Texas and the Southern states in general are target markets for investment, and energy is a top focus."

Companies with proven reserves and diversified geography that are oil producers will have the best chance of getting the capital they need, Frederickson said.

Company leaders, though, need to approach a lender with a clear business plan that defines what the funds would be used for."

Link - http://www.chron.com/business/article/Midmarket-Eagle-Ford-drillers-have-shot-at-funds-3313293.php"

EKA only catching up to fair value and still cheap at .35c IMO, at least .55c would be fair now. Word has it things are tracking along very nicely for EKA ATM


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## mr. jeff (16 February 2012)

trader8888 said:


> EKA only catching up to fair value and still cheap at .35c IMO, at least .55c would be fair now. Word has it things are tracking along very nicely for EKA ATM




Well I spent yesterday eating my words.




I had sold half my holdings just to watch the last moves unfold. Very good moves through that 30c level and then pushing higher. There is some serious buying in the market and it has really got EKA's sp turned around. I jumped ship completely yesterday on the 11% gain and was quite happy to book those profits coming from the 27.5c level. Will be great to see what today holds for EKA. 
Another low volume tight spread pullback would be positive, but that 35c level may take some breaking, particularly as the action overnight in the US was negative.

Good luck 8888 in seeing that 55c level, I don't think it is out of the question but would like to see just how the 45c level works first. I don't know much about the fundamentals, but when looking at a year ago, how does EKA look when considering size of reserves (as a percentage on last year) and the prices they could now get ? 
This would give me a simple idea of where, if the market returns to risk chasing,  EKA may potentially head. 
Someone mentioned that AUT was like this stock, well yes and no, AUT had an amazing run that was unstoppable, making a high which it has now struggled to break a couple of times and appears to be consolidating at these levels. EKA generally mirrored that run up but came out at the other end back at the start. 

Short term you could say so though it has been positive action. Let's see where it goes. Good luck and look forward to hearing more about the fundamentals.


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## Kremmen (18 February 2012)

mr. jeff said:


> I don't know much about the fundamentals, but when looking at a year ago, how does EKA look when considering size of reserves (as a percentage on last year) and the prices they could now get ?



They haven't been trying very hard to increase their reserves. If you are thinking about possible downturns, an important question might be whether the company is making decent money. EKA can spend nothing and make money. The Sugarloaf wells are good. AUT has spent lots of money to dig more wells, but the areas it's moved into subsequently have much lower production, especially Excelsior. EKA's net operating cash flow for Dec quarter was over 1/6 AUT's, with production over 1/12 of AUT's, yet at under 1/16 the market cap.


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## Kremmen (21 February 2012)

trader8888 said:


> Lenders are competing for midmarket deals, he said, and "Texas and the Southern states in general are target markets for investment, and energy is a top focus."




For all that competition, EKA has ended up getting a $50M loan from Macquarie. That certainly should be enough to finance their part of this year's drilling.


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## Harvestar (21 February 2012)

Is $50m enough to fund their future expansions?

I'd be interested to know what sort of precedents that Macq have put in place for EKA to receive all the funds over time. Any ideas?

I suppose the backing of the 'Millionaire Factory' can only be a good thing. They must see value and potential in the company!


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## philly (21 February 2012)

philly said:


> Has anyone really considered how much US$  EKA is going to need to fund its share of this accelerated drilling?
> As I read the Dec Quarterly report EKA had US$6.08m in the bank and was getting revenue from first 3 wells that Hilcorp drilled now that it has completerd paying them out.
> Going to the market in the current climate for a debt facility / capital raising is no easy feat. Even a SPP whilst popular amongst us may dilute the value of our shares too much.
> 
> ...






philly said:


> AUT has just raised US$200m to partly fund the accellerated drilling programme in the Sugarkane. It has other interests in the Eagle Ford so not all of the money will go towards Sugarkane but I guess it may be a tad more that US$6.08m that EKA has in the bank ATM.
> IMO management need to get out there or risk missing the bus on this one. If they can't fund the proposed drilling program they need to farm out some of their interest or maybe risk being brought out all together. IMHO both AUT and AWE may be interested.
> All IMHO and DYOR




Ah yes finally the news I wanted to hear EKA has secured US$50M from Maquarie. They get US$15M immediately and will be fully funded for the accelerated drilling scheduled for this year. 
I now hold EKA @ $0.345


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## Kremmen (1 March 2012)

Here we go. 65 (by quarter: 12/22/18/13) wells to be drilled in 2012.
About 50 totally in the AMI, with 15 shared with surrounding lease-holders.

As it's already March, that means 12 in the next month.


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## Kremmen (30 April 2012)

Ever since EKA became vastly better value for the same assets, it was obvious that EKA was better value than AUT.

For AUT, just like us shareholders, EKA is better value than their existing holding, so I've long believed that AUT should buy EKA. (Plus, they get the advantage of consolidation of the two parallel operations.)

Finally, AUT has made an on-market takeover offer. It's way, way below what EKA's assets are worth, if you measure them by the same metrics as AUT and given the trading range so far, 46.5-48c, it looks like nobody believes this is the final offer.


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## philly (3 May 2012)

EKA has rejected the AUT offer of 45 cents as below value.
It says SUGARLOAF is valued at 56 cents per share minimum. Also the current offer does not take into account EKA'S other interests namely Pan de Azucar [675 acres], Black Jack Springs [916 acres] and the Brioche Project [4460 acres] or cash reserves [$5.2 m as at 16/3/12]. It is difficult to factor in any value for its other acreage as at the moment we are dealing with potential. The cash reserves would be woth 2 cents per share. All in all it would seem that AUT will need to bid higher if it wants EKA. IMO it looks like 58 cents would be a starting point. 
I hold EKA


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## Kremmen (7 May 2012)

More potentially good news: EKA has a new CEO starting 10 May, who used to be Project Manager of Group Mergers and Acquisitions for BP, before coming to Australia. That could be useful background in the current circumstances.


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## Sdajii (7 May 2012)

He only gets to keep his job if the takeover is unsuccessful. I like him having that motivation!


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## philly (8 May 2012)

Two new announcements out this morning both reinforcing why the AUT offer of 45 cents is below par but IMHO both also suggesting that if a higher offer was made then things might be different
I hold both EKA & AUT
All IMHO & DYOR


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## philly (8 June 2012)

As of today AUT cannot extend or raise its offer for EKA UNLESS it achieves certain conditions are met.
Interestingly, 2 directors still reject the offer whilst one of the director's is selling up in the absence of a superior offer. Makes you wonder a bit. Also what will happen to the SP once the offer is off the table? Does it drop back to mid 30c where it was before the offer? Do you sell for 45c and re buy on the drop/ Still plenty to unravel with this one. Stay alert. All IMHO
I HOLD


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## redMax (8 June 2012)

Non-binding merger proposal from Lonestar Resources, Inc


Eureka Energy Limited (ASX: EKA, "Eureka" or the "Company") advises shareholders that it has received
a non-binding and incomplete merger proposal from an unlisted US based company, Lonestar
Resources, Inc (Proposal), whereby Eureka would be the acquiring entity. Lonestar has stated that it
believes its proposal to be an alternative to the current offer from Aurora Oil & Gas Limited (ASX: AUT).


Alot of big trades have been going through over the last few weeks above AUT's offer price. This is obviously been the reason. A people try to tell me that insider trading doesn't happen

RedMax


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## philly (9 June 2012)

*Eureka! Bidding War Looms for U.S. Shale Developer.*

Article in Wall St Journal on 8 June by Ross Kelly

It ain’t over till it’s over.

Just hours after Aurora Oil & Gas said it won’t extend its 107 million Australian dollar (US$105.6 million) offer for Eureka Energy beyond next Friday, signaling an end to a seven-week takeover tussle for the U.S. shale oil developer, a rival bidder has thrown its hat into the ring.

Closely held Lonestar Resources, which owns 5,691 net acres in the Eagle Ford Shale in Texas among other U.S. assets, has offered Eureka an alternative to Aurora’s rebuffed cash bid worth 45 Australian cents a share.

Details of Lonestar’s proposal are thin, with talks due to take place with Eureka’s board this weekend.

Lonestar’s overtures already have one big attraction for Eureka’s board: the chance to reunite and get themselves out of a pickle.

Their early rejection of Aurora’s offer as inadequate may have been a tactic to secure a higher bid from Eureka’s ASX-listed rival. But it was a move laden with risk, and Aurora opted to play hardball after criticizing a debt facility that Eureka took out subsequent to Aurora tabling the A$107 million bid.

In a statement Friday, Aurora confirmed its bid would close on June 15. Aurora’s statement is significant as regulations make clear it isn’t allowed to increase its offer price between now and then, except in certain circumstances.

But Aurora’s stance appears to have put the cat among the pigeons at Eureka whose board split with two directors sticking to a view that shareholders should reject the bid, and another director saying they should accept it because choppy market conditions made it likely that Eureka’s share price would suffer soon after the offer period ends.

Aurora and Lonestar have similar rationales for trying to acquire Eureka. Both have a significant footprint in the Eagle Ford Shale region, so understand its geology and potential. While a boom in U.S. shale gas production has driven down domestic natural-gas prices, the Eagle Ford shale is rich in liquids, which attract higher margins than gas.

Eureka’s shareholders appear to see the potential for upside, especially after the emergence of Lonestar, which is being advised by Deutsche Bank. Eureka shares closed 4.4% higher at 48 cents each Friday.

With more twists and turns than the average oil and gas pipeline in the U.S. midwest, this takeover saga looks like it has further to run.

IMHO Hold onto ya horses shareholders
I HOLD


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## philly (12 June 2012)

EKA directors have rejected the proposed merger with Lonestar.
The SP is down 3 cents today to 45 cents which equals the AUT bid
Where to now?


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## Assasin (12 June 2012)

Well it appears AUT may get their prize.
IMO, if the SP stays around 45c, then it could only be AUT accumulating. AUT is also offering stock at a 20%+ discount to recent highs so a great time to swap over and put in a drawer.
Good luck.


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## philly (13 June 2012)

The EKA directors have recommended that shareholders accept the AUT offer. 
They will be selling out. 
As at this morning AUT held 33% of EKA
This has played out much the same way as the AWE bid for ADI a few years ago. 
Ordinary shareholders forced to sell out at a very low price.
The party is over


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## Kremmen (26 June 2012)

AUT has been very lucky. The market in general, and the oil price in particular, have had sustained falls since the takeover bid.

However, we've been lucky too. For those of us who bought (back) into EKA around 17-18c last November, we've almost tripled our money in 7 months. Better yet, the extension to 6th July means we can sell next financial year and not have to pay the tax on the gain until 2014.

I'll be saying a fond farewell to my EKA holding on July 2.


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## Kremmen (5 July 2012)

How's this for insane?! With only 7M shares left and compulsory acquisition announced, someone is buying EKA for 46c!


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## easylikesunday (24 July 2013)

Hey all,

I just logged into my eTrade account after its been sitting dormant for 2 years and noticed I have no value showing for my EKA shares. After reading this thread I have sort of worked out whats going on but whomever brought EKA, should I be getting compensation or new shares? 

My account shows EKA still in my portfolio but with a  value of $0

Any help?

Thanks.


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## Country Lad (24 July 2013)

easylikesunday said:


> My account shows EKA still in my portfolio but with a  value of $0




You really need to keep track of your shares, EKA was taken over by AUT a year ago.  Read the half a dozen posts before yours and  this link.

Cheers
Country Lad


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## easylikesunday (25 July 2013)

Country Lad said:


> You really need to keep track of your shares, EKA was taken over by AUT a year ago.  Read the half a dozen posts before yours and  this link.
> 
> Cheers
> Country Lad




I have read the link and from my understanding I should be compensated?

It says I don't need to do anything and that I should be paid .45c a share.

The process takes 4-6 weeks apparently but its been over a year. As I sais the code EKA still sits in my eTrade portfolio but with a $0 amount worth.


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## Country Lad (25 July 2013)

You should have received 45 cents per share IF your details with Computershare were current at the time, ie they had your address or bank account.  

If you did not give computershare these details the question arises how can they get the payment to you?  If they had an old address the money would have been sent there.

There is more to this game than just buying shares through a broker, you need to make sure that the share registry and consequently, the company has your contact details so they can find you.  The broker has nothing to do with you receiving dividends, payouts such as this, notices from the company etc.  That is what the share registries are for.

Best you contact Computershare who was the registry for EKA.  Also tell the broker to tidy up their records.

Cheers
Country Lad


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