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EGO - Empire Oil & Gas

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Re: EGO - Empire Oil

I am thinking after recent increases in EGO maybe EMR (which has declined) may now provide more leverage.

What do others think?

My $ is in EMR.

Congrats to EGO holders.
1.3c, up 30%
 
Re: EGO - Empire Oil

This stock is gaining momentum ATM, and on a down day, volume mounting and getting gobbled.

Drill results due out by the end of the month (canning basin) so maybe people getting in early. (IMO)

Any thoughts??
 
Re: EGO - Empire Oil

Jockstar73 said:
This stock is gaining momentum ATM, and on a down day, volume mounting and getting gobbled.

Drill results due out by the end of the month (canning basin) so maybe people getting in early. (IMO)

Any thoughts??
Click to expand...

large buy orders were put thru behind the scene, looks like institutional buying. hope to see a change in substantial holding in a few days.
 
Re: EGO - Empire Oil

If it is solely Canning then, it seems the market isn't interested in the other partners at Valentine/Stokes Bay (ARQ, PCL, EMR, FAR...).

I guess the market is just repricing the leverage more appropriately. It really was a steal for the leverage it offered at 0.007. It's a long way back down if they both finished as dusters. It should be noted that the smaller of the two drills isn't a wildcat but an appraisal well. These tend to relative high success rates (NW Shelf Appraisal wells are at about 50-60% according to the Mining Valuation Handbook) versus about a 8-10% chance for a wildcat. It is worth noting that the Canning Basin is notoriously difficult and hasn't been very forthcoming in the past.
 
Re: EGO - Empire Oil

doctorj said:
If it is solely Canning then, it seems the market isn't interested in the other partners at Valentine/Stokes Bay (ARQ, PCL, EMR, FAR...).

I guess the market is just repricing the leverage more appropriately. It really was a steal for the leverage it offered at 0.007. It's a long way back down if they both finished as dusters. It should be noted that the smaller of the two drills isn't a wildcat but an appraisal well. These tend to relative high success rates (NW Shelf Appraisal wells are at about 50-60% according to the Mining Valuation Handbook) versus about a 8-10% chance for a wildcat. It is worth noting that the Canning Basin is notoriously difficult and hasn't been very forthcoming in the past.
Click to expand...

its true that investors r taking on a lot risk, bt to my knowledge institutional buyers usually dont jump in with huge risk like this. they definately have a better knowledge than us that the value of the stock over weights the risk its taking.
 
Re: EGO - Empire Oil

The reason being is that it was a good bet (meaning the risk/reward was very favourable). Whether it still is now the market cap has all but doubled is another issue. The rig is on site and being put together. I guarantee you the instos don't know any more than the market does - there is no way that they know whether or not the drill will be a success. What they have identified is there was a risk/reward opportunity.
 
Re: EGO - Empire Oil

UPKA said:
its true that investors r taking on a lot risk, bt to my knowledge institutional buyers usually dont jump in with huge risk like this. they definately have a better knowledge than us that the value of the stock over weights the risk its taking.
Click to expand...
I am looking forward to the time you abbreviate the indefinitive 'a', in some way. :p: :confused:

Or, maybe you could just add one or two more letters to your posts....:rolleyes:
 
Re: EGO - Empire Oil

Up to 0.017 ... i almost miss typed and put 0.17 ... lol now that would have been nice :)

Any ideas on where this is heading ... pretty strong push on an off day ... no news since the quarterly on 26th.

A lot of shares on issue though ... but its all relative ... when it starts to get close to 10c then i think the number on issue will become important ... DYOR
 
Re: EGO - Empire Oil

Ann.

Placement at .08c

As someone said - ego deflating - 1.3c

Hmm.

So was that some kind of pump?
 
Re: EGO - Empire Oil

I sold at 1.1....Poor me!! Damn it! :banghead: The spec potential is still there with Stokes Bay and Valentine. If it's a duster though....ouch, I feel. Will be interesting to see the action over the coming days. Still might be potential for a trade, or an investment. Good luck all!!
 
Re: EGO - Empire Oil

It is a placement that is conditional on shareholder agreeing on other issues at the AGM next month.... so it is not a done deal yet.....
 
Re: EGO - Empire Oil

A lot of jnr oilers do placements when they run up in the lead up to a drill - it allows them to raise money and reduce dilution for long term holders. In the long run its good management. It's unfortunate that people enlarge didn't take some money off the table this afternoon, but they may still get lucky with Stokes Bay/Valentine.
 
Re: EGO - Empire Oil

Doctorj

Thanks for your comments.

As EGO will have more shares on issue with the placement it might seem that EMR is even more attractive re Canning Basin exposure.



Cheers
 
Re: EGO - Empire Oil

Have you done the comparison? Bare in mind EMR reduced its interest in the drill since Strachan put out his initial research.
 
Re: EGO - Empire Oil

Doctorj

You are too good! Thanks for your information.

I am sure we will take on board.

Cheers
 
Re: EGO - Empire Oil

doctorj said:
A lot of jnr oilers do placements when they run up in the lead up to a drill - it allows them to raise money and reduce dilution for long term holders. In the long run its good management. It's unfortunate that people enlarge didn't take some money off the table this afternoon, but they may still get lucky with Stokes Bay/Valentine.
Click to expand...

Yes I wish I had taken money off the table.
If the motive was to minimise dilution the company would not have placed at .008. The price has been around .008 for almost 18 months!!
 
Re: EGO - Empire Oil

Placements are usually done at a discount to the market price. Had the price been sitting at 0.007/8 they would have done the placement at 0.006 or less. The fact that the price has spiked has allowed them to do the placement a little higher, but really, they couldn’t have gone much higher than they did – even more so given how the market has been the past week.
 
Re: EGO - Empire Oil

Doctorj

A personal question.

Are you a real doctor?

If so, it that a stock doctor or some other kind of doc?


:)
 
Re: EGO - Empire Oil

Also, I believe the targets were revised downward since the first published Strachan research. On the other hand, not entirely sure what the revision means given no new drilling/seismic etc was done in the interim. Perhaps someone looked at the trap on a different angle and rejigged the maths? Anyway offshore appraisal wells in Australia seem to have 50-63% success rate and exploration wells 6-27%. As I said, the Canning Basin has been difficult in the past, so consider using the lower ends of those bands for your analysis. Strachan has used 12% and 6.7% for his analysis.
 
Re: EGO - Empire Oil

Speeding ticket :D

It had to happen lol

But they gave a pretty big response as if they where trying to hide something or i don't know ... the mentioned a few things several times...

Will be interesting to see how things play out next couple days/weeks.
 

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