Like a kid waiting for christmas isn't it lol,
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%
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....
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)
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)
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...
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......
I sold out yesterday
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