EKA - Eureka Energy
- Thread starter Broadside
- Start date
-
- Tags
- eka eureka energy
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.
- Joined
- 20 May 2010
- Posts
- 133
- Reactions
- 0
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
It took a couple of weeks but it did get there and the charts are looking very similar again IMHO
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
It took a couple of weeks but it did get there and the charts are looking very similar again IMHO
Sdajii
Sdaji
- Joined
- 13 October 2009
- Posts
- 2,063
- Reactions
- 2,043
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?
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.
- Joined
- 1 November 2006
- Posts
- 373
- Reactions
- 14
Announcement today that one of the directors, Mark Wilson, bought an extra 700,000 EKA for his superannuation fund at almost 30c.
Sdajii
Sdaji
- Joined
- 13 October 2009
- Posts
- 2,063
- Reactions
- 2,043
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.
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.
- Joined
- 17 August 2006
- Posts
- 7,739
- Reactions
- 8,332
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.
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?
Sdajii
Sdaji
- Joined
- 13 October 2009
- Posts
- 2,063
- Reactions
- 2,043
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.
- Joined
- 17 August 2006
- Posts
- 7,739
- Reactions
- 8,332
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
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
- Joined
- 17 August 2006
- Posts
- 7,739
- Reactions
- 8,332
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 ......
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
We shall see on tuesday ......
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
- Joined
- 20 May 2010
- Posts
- 133
- Reactions
- 0
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
This would mean that the only way to raise more money is through sophisticated shareholders.
My
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.
- Joined
- 17 August 2006
- Posts
- 7,739
- Reactions
- 8,332
Evil thoughts 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.
