EGO - Empire Oil & Gas

[Datsun Disguise]

Re: EGO - Empire Oil

Like a kid waiting for christmas isn't it lol,

ha ha1 You are right, but there's an added edge to it of not being sure if he's going to give you that new scalextric set (the bathurst version) or steal your favourite tarnsformer!!!

 

[Putty7]

Re: EGO - Empire Oil

EMPIRE ACQUIRES ADDITIONAL EQUITY IN EP 389

Empire Oil & Gas N.L. is pleased to advise that its wholly-owned subsidiary, Empire Oil Company (WA) Limited (“Empire”), has been successful in negotiating a further 15% equity in its EP 389 Permit and the Gingin West-1 petroleum exploration well. The acquisition of the additional 15% equity is a ground floor cost paying 15% of the Gingin West-1 well costs for this additional 15% equity.

Empire now has a 68.75% interest in the EP 389 Permit and the exciting Gingin West-1 well.

The Gingin West Prospect has the potential to have recoverable gas reserves of 91.7 billion cubic feet of gas and 1.1 million barrels of associated condensate. In addition to Gingin West, there are prospects extending over a 60 kilometre trend. These include the Gingin Gasfield and Gingin Deep Prospect which contain the discovery wells, Gingin No. 1 (which produced at 5 million cubic feet per day) and Gingin No. 2 (flowed at 3.9 million cubic feet per day) drilled in 1964 and 1965 respectively. In addition to the Bootine No. 1 well drilled in 1981, (which flowed at 2.25 million cubic feet per day) all these wells flowed gas naturally at economic rates.

The other prospects include the extension south of the Gingin Gasfield and the Gingin South, Gingin Brooke, Eclipse West and Yeal prospects and other leads that collectively have the potential to have recoverable reserves in excess of 1 trillion cubic feet of gas.

Empire is the Operator of the Gingin West No. 1 well which is currently drilling ahead toward the Cattamarra Coal Measure reservoir objectives. Details of the progress of this drilling programme is provided to the ASX on a daily basis.

Empire considers Gingin West to be an attractive prospect which has been largely de-risked by the acquisition of 2D Seismic Surveys and the recent Gingin West 3D Seismic. The reservoir objectives at Gingin West are those that have been gas productive in the Gingin No. 1, Gingin No. 2 and Bootine No. 1 wells.

The Gingin West and Gingin Gasfield prospects are located in immediate proximity to both the Dampier to Bunbury Natural Gas Pipeline and, more importantly, 2.8 kilometres from Compression Station No. 5 on the Dongara to Pinjarra Pipeline (the Parmelia Pipeline). The Parmelia Pipeline has spare capacity to accommodate any gas production from the Gingin West Prospect.

The EP 389 Joint Venture equities are:

Empire Oil Company (WA) Limited (Operator) 68.75%
ERM Gas Pty Ltd 21.25%
Wharf Resources Plc 10.00%

Empire have gained 15% from Wharf Resources in the block where they are currently drilling, if it isn't a duster then it's a great potential income boost, had a gas spike in the drill announcement this morning as they went through some of the lesser coal layers that are above the target area. Another hole may follow this one aimed at a bigger target.

 

[Datsun Disguise]

Re: EGO - Empire Oil

Looking at the drilling reports it looks very much like we will be hitting the pay zone at some time over the weekend - looks like tomorrow may be the last opportunity to get in on what looks like a no brainer when you consider the previous activity and the reports to date (as per Putty's post above)

This is looking very much like a BESAR play for me now....

 

[Putty7]

Re: EGO - Empire Oil

Looking at the drilling reports it looks very much like we will be hitting the pay zone at some time over the weekend - looks like tomorrow may be the last opportunity to get in on what looks like a no brainer when you consider the previous activity and the reports to date (as per Putty's post above)

This is looking very much like a BESAR play for me now....

SP is starting to build again today Datsun so thats something, won't get over excited just yet as we have seen that before. I'm thinking the same, ride the first hole out, if it fails the second hole is there to fall back on, I can only assume they will drill the second regardless while they have the rig on site and set up, either way the wait will be over next week, whether it is the outcome we are all looking for is a question only the drill rods can decide now.

I think they have enough cash to do both without doing a cap raising, but unsure, some of etrades data on these little minnows isn't as good as it could be, maybe you could shed some light on that Datsun.

 

[Datsun Disguise]

Re: EGO - Empire Oil

I think they have enough cash to do both without doing a cap raising, but unsure, some of etrades data on these little minnows isn't as good as it could be, maybe you could shed some light on that Datsun.

Plenty lying around - by the end of the qtr after completing Gingin they will have $6m and some change at the bank - they've got next to no liabilities (just over $100k).

I think tomorrow will be a good day - but choppy. Monday I'll either be down the pub celebrating or down the pub drowning my sorrows - so win / win. But I have to say that the odds are that it will be the Moet and not the draught that goes down the hatch at midday (or there abouts)

 

[dandyjac]

Re: EGO - Empire Oil

Plenty lying around - by the end of the qtr after completing Gingin they will have $6m and some change at the bank - they've got next to no liabilities (just over $100k).

I think tomorrow will be a good day - but choppy. Monday I'll either be down the pub celebrating or down the pub drowning my sorrows - so win / win. But I have to say that the odds are that it will be the Moet and not the draught that goes down the hatch at midday (or there abouts)

I hope you are right I have been holding EGO for over 2 years waiting for it to go off and I feel the time is near (Lets Hope)

Ps: I prefer down the Pub Celebrating

 

[Putty7]

Re: EGO - Empire Oil

I hope you are right I have been holding EGO for over 2 years waiting for it to go off and I feel the time is near (Lets Hope)

Ps: I prefer down the Pub Celebrating

Plenty lying around - by the end of the qtr after completing Gingin they will have $6m and some change at the bank - they've got next to no liabilities (just over $100k).

I think tomorrow will be a good day - but choppy. Monday I'll either be down the pub celebrating or down the pub drowning my sorrows - so win / win. But I have to say that the odds are that it will be the Moet and not the draught that goes down the hatch at midday (or there abouts)

Think there are a few around still holding EGO after the 6c spike a few years ago Dandyjac.

Thanks Datsun, yes up a bit on open to .016c, not a convincing volume but it's early in the day yet, if they have enough cash to drill both holes that is a bonus, nothing worse than a cap raising putting a dampener on a rising SP aka LKO, would prefer to be inhaling in champers over crying into a beer next week but time will tell lol

 

[Datsun Disguise]

Re: EGO - Empire Oil

Well boys and girls, volume building nicely and price going in the right direction. The scene is set for a good afternoon - maybe I'll start popping corks this afternoon instead!

If we get a result I'm now trying to estimate what price we might see - I'm not talking about what the discovery is worth as i've alwasy had trouble valuing gas for some reason. But you'd have to think the 4-5 c range would be possible. That would value the company between 120 and 150 million, still pretty conservative given that becoming a producer will assure the future of the company - given the prospects of the company (there's a lot!) we may even see a price approaching 10c plus once production gets underway.

Thanks to the foray into the 1.7c range I'm happy to say that I am now free carried (virtually) for the results. Now to throw some cash at CTP...

 

[dandyjac]

Re: EGO - Empire Oil

Well boys and girls, volume building nicely and price going in the right direction. The scene is set for a good afternoon - maybe I'll start popping corks this afternoon instead!

If we get a result I'm now trying to estimate what price we might see - I'm not talking about what the discovery is worth as i've alwasy had trouble valuing gas for some reason. But you'd have to think the 4-5 c range would be possible. That would value the company between 120 and 150 million, still pretty conservative given that becoming a producer will assure the future of the company - given the prospects of the company (there's a lot!) we may even see a price approaching 10c plus once production gets underway.

Thanks to the foray into the 1.7c range I'm happy to say that I am now free carried (virtually) for the results. Now to throw some cash at CTP...

Looks like the share price took a back seat with a flood of 250 000 000 options exercised, I hope the buyers are able to mop them up, I hope it will not knock the wind out of the share price to long

Refer to ASX announcements
for EGO December 2009 placement Report

 

[Datsun Disguise]

Re: EGO - Empire Oil

It wasn't exercise of options it was an old fashioned cap raising, which is very strange as they have more than enough cash to cover drill / test of gingin. It wouldn't surprise me if this placement ended up in the hands of directors or connections of.....

Seems like dodgy business to me - they were placed on the 30th of November when the price was already sitting around 1.3 - 1.4c. represents a discount of 30 to 35% on the day - 1.3 was about the mid point over the previous 3 weeks. To boot they also get free attaching options exercisable at 1c - that is a pretty sweet (perhaps sweetheart) deal.

Might have to call and ask why are the board giving away equity in our company given that there was no immediate need for cash......

 

[Putty7]

Re: EGO - Empire Oil

It wasn't exercise of options it was an old fashioned cap raising, which is very strange as they have more than enough cash to cover drill / test of gingin. It wouldn't surprise me if this placement ended up in the hands of directors or connections of.....

Seems like dodgy business to me - they were placed on the 30th of November when the price was already sitting around 1.3 - 1.4c. represents a discount of 30 to 35% on the day - 1.3 was about the mid point over the previous 3 weeks. To boot they also get free attaching options exercisable at 1c - that is a pretty sweet (perhaps sweetheart) deal.

Might have to call and ask why are the board giving away equity in our company given that there was no immediate need for cash......

Was a bit stunned by the announcement, especially at the mates rates discount on an already rising SP when they appear to be cashed up, 3rd time they have released shares into the market when buyers are dominating the days trading, doesn't the ASX have to keep an eye on this sort of thing ??

 

[Datsun Disguise]

Re: EGO - Empire Oil

Hey Putty, you didn't head out to EP389 over the weekend did you? It's in your neighbourhood isn't it?

Giving myself RSI hitting the refresh button waiting for news.....

 

[Putty7]

Re: EGO - Empire Oil

no Datsun, I have a few mates holding these as well, we talked about ringing up and going to have a look but never got around to it, if I ring them up at the moment will be looking for answers not booking sight seeing trips lol. I am holding MHL as well so my refresh button getting a double work out.

 

[Putty7]

Re: EGO - Empire Oil

Drilled through the first target sand belt with hydrocarbon shows (see ASX announcement), is the upper layer and smaller of the sand belts to be drilled through, SP well held this morning at .016c by sellers, dropped to .015c after announcement again by sellers, hard to see any real upward movement until they bugger off the rest off the 225 million shares from the cap raising, whoever they went to (would be nice to know) must be making a killing, still another 225 million options on top off that to be released into the market.

The fat cats look likely to lick all the cream off before the traders get a look in

 

[travwj]

Re: EGO - Empire Oil

Whats going on with EGO. The SP has dropped in the last two days with out any negative information. So far this morning almost 50mil shares traded and down 7%...

does anyone have any reason why? unless the results arn't to flash?

Trav.

 

[Datsun Disguise]

Re: EGO - Empire Oil

This drilling program has been very disappointing from an sp point of view. The price has been kept suppressed by big dumps which has kept people nervous - why would you buy in when you can see that elephant traders are taking out whole price points (pushing prices down) which then spooks everyone?

I reckon they must have gotten into the B sands by now and they will have a reaosnable idea of if they have something or not (prior to testing). This morning's sp collapse could be the result of leaking news, or just people getting out because they haven't been able to cover their risk (ie still too close to their entry, take a small gain or loss in order to avoid the risk of a sp dump)

I'm uncertain as to whether a good find will do much to the sp anyway, I have the luxury of being free carried so I can wait for the actual results, but still, for me I think EGO has been killed..... or maybe it has just become a dirty word.

 

[Putty7]

Re: EGO - Empire Oil

I sold out yesterday Datsun, after watching the SP climbing on buying strength Friday only to be unceremoniously belted down near day end, it certainly is a disappointing outcome to be where it is at the moment, if they bash the SP down to .011c I might have another look. The buyers are still there, they are just getting inundated with supply, until that stops no upward SP movement. A good drill result might clean them up quicker maybe.

 

[travwj]

Re: EGO - Empire Oil

Todays announcment is out, and i don't know anything about gas reserves, but the announcement has a positive side to it. I mean they have reached the target zone, with still a bit more to drill. Would anyone beable to put the announcment into laymens terms.

Cheers

Trav

 

[Datsun Disguise]

Re: EGO - Empire Oil

Trav - the good news so far is that there is gas there, the better news is that they have confirmed that the A Sands are in fact 'up dip' from the original Bootine production well. As oil and gas migrate upwards until they reach an enclosure (just rocks they can't get through) this means they have tapped the reservoir at a point were they can get to more of the gas / condensate than would have been available at the Bootine site. The results of the A Sands where better than those that were encountered at the Bootine well so again another very positive sign. I'm not a gas expert either so I might be missing something - if I am hopefully another ASFer can help?

I've been thinking on this weird sp performance given the positive news so far and I've got a theory.

If I was the broker who had just laid down 2.5 million of my clients money on a speculative play like EGO I'd be working very hard to ensure that I removed as much risk from it as I could. This would mean taking profit now to reduce the overall cost of the remaining shares. eg sell half at a 30% profit (ie 1.3c) and that would leave me with a 0.7c entry. The question is just how low an entry price do they want OR are they happy with 30% profit and will unload as much as possible prior to the results?

All star gazing, but this sp action just does not make sense!!!

 

[Datsun Disguise]

Re: EGO - Empire Oil

I sold out yesterday

Don't blame you, hope you picked up some dollars - not as many as hoped for but dollars none the less.

I'm still holding my free ones..... and watching them reduce in value.... but 1.3 seems fairly solid - for now.