EKA - Eureka Energy

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.

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..

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.

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.

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!

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.

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!

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%

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.

WRONG'UN · 1 February 2011

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

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.

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.

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

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.

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

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.

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.

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.

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!

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.

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.

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

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

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.

EKA - Eureka Energy

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