EKA - Eureka Energy

[RNI]

Yes, I do.
It is all to do with what is going on in the world all around and also to the price of oil.

The same has happened to aut, txn and the others. People are afraid of what might still happen ie maybe a recession etc and are being cautious. It is not eka, it is outside factors we cannot control.

When things settle, and it could be quite a while yet, eka and the others will shoot, so good buying opportunities around.
Hope this helps.

 

[mrthong]

meanwhile the mining sector recovers, EKA tumbles. slightly. EKA doesnt seem to move along with its sector. tempting to buy, but will it recover?

 

[speculator101]

Well.. after watching EKA for 3 years... I have finally purchased a small amount.

At it's current market cap... its basically now just waiting to be removed from the market. ( I base this simply on past experience. i.e. ADI.... )
Under $40 mil market cap is pretty much 1/2 of what was offered for ADI... soo..
EKA has approx %50 less value than ADI holdings.

Hmm.. I would assume the only company that would take them over is AUT....

Anyway, surely AUT must look at EKA every week, and laugh... with their huge market cap now.
I stress that EKA only has $5ish million in the bank, but they are making money so hopefully they will not tap the market again....
I would be interested to hear from fellow investors if anyone knows of any other company that might be interested in EKA?

IMHO
Good luck to all.

 

[yma]

How about AWE which took over ADI before

 

[speculator101]

AWE is in a bit of a bind right now, with approx $90mil cash, which is needed for capital works and its shale exploration in WA. So.. unless they do a %100 script bid for EKA.. its no go... and.. considering their share price has been wallowing at what I believe is bargain basement prices for the past 6 months... I don't think AWE's major shareholders would support it...
just my

( just for the sake of Clarity, I personally believe that AWE will sell their former 'ADI' U.S holdings as it is non-core )

Cheers for the first reply though 'yma'.

IMHO of EKA, AWE, BPT, COE, BRU, CTP.

 

[Harvestar]

Does anyone have any update as to why there has been no volume traded in the past 48 hours? I haven't seen any announcements lately to indicate why this is the case......

Any info would be great!

 

[yma]

AWE is in a bit of a bind right now, with approx $90mil cash, which is needed for capital works and its shale exploration in WA. So.. unless they do a %100 script bid for EKA.. its no go... and.. considering their share price has been wallowing at what I believe is bargain basement prices for the past 6 months... I don't think AWE's major shareholders would support it...
just my

( just for the sake of Clarity, I personally believe that AWE will sell their former 'ADI' U.S holdings as it is non-core )

Cheers for the first reply though 'yma'.

IMHO of EKA, AWE, BPT, COE, BRU, CTP.

My average price for EKA is 28c, compare to AUT EKA should have the price well over 50c today, i would happy to wait for the price go up rather than a take over bid. In 2 years, i believe EKA, AUT, HOG, TXN are all in bargain price, just need more patient.

 

[RNI]

For some reason they are not developing their next well until Q1 2012 so maybe people are getting inpatient. Need to read their last ann again. I am holding on as think it has great potential, but know the frustration as I am in the same boat.

 

[RNI]

They are still assessing the 1st producing well on the Black Jack Springs area which has the POTENTIAL to be a 350boe well they are thinking.

Their 1st well on the Brioche acerage is expected Q1 or 2 2012, but could be brought forward.

At the Good Oil Presentation in September 2011 they stated the Sugarloaf acerage ALONE was valued at 58c ps and the latest analysts report value eka at 63c ps, so it is certainly grossly undervalued for sure.

 

[Kremmen]

Does anyone have any update as to why there has been no volume traded in the past 48 hours?

I claim the answer is because people are stupid.
Today's resource upgrade announcement has been followed by a big spike upwards in SP, against a falling market, yet it was nothing (that should have been) unexpected. Whoever is buying at 22c today should have been buying at 17c a week ago.

At the Good Oil Presentation in September 2011 they stated the Sugarloaf acerage ALONE was valued at 58c ps and the latest analysts report value eka at 63c ps, so it is certainly grossly undervalued for sure.

There is an obsession by many investors with growth. However, growth is risky. The Sugarloaf area is great. (AUT's wells in other areas have mostly been way worse than their Sugarloaf wells.) EKA receives about as much per share as AUT in Sugarloaf and is mostly just sitting there making money. They will never be a billion-dollar company doing that, but they also won't waste the money they have.

 

[jancha]

I claim the answer is because people are stupid.
Today's resource upgrade announcement has been followed by a big spike upwards in SP, against a falling market, yet it was nothing (that should have been) unexpected. Whoever is buying at 22c today should have been buying at 17c a week ago.



There is an obsession by many investors with growth. However, growth is risky. The Sugarloaf area is great. (AUT's wells in other areas have mostly been way worse than their Sugarloaf wells.) EKA receives about as much per share as AUT in Sugarloaf and is mostly just sitting there making money. They will never be a billion-dollar company doing that, but they also won't waste the money they have.

I would be more inclined to buy EKA over AUT as it stands in price. Less risk as you've pointed out. EKA has a good growth potential with their other leases. Check out Morning Stars ratings on EKA & AUT. Big difference in their ratings.

Noticed volume in trading up last week with EKA. Hopefully it will start working it's way back up to the 40c range again. Would have thought that EKA at this price of 21c would be looked at as a serious t/o.

 

[jancha]

EKA had a few corrections to make from their presentation. Nothing serious tho.
Starting to gain a bit support now with higher volume taking out the 23c range.

 

[AngusSmart]

Whats with the late move again today?

nice to check out portfolio at end of day to notice 20% gain in eka..

 

[Assasin]

I would be more inclined to buy EKA over AUT as it stands in price. Less risk as you've pointed out. EKA has a good growth potential with their other leases. Check out Morning Stars ratings on EKA & AUT. Big difference in their ratings.

Noticed volume in trading up last week with EKA. Hopefully it will start working it's way back up to the 40c range again. Would have thought that EKA at this price of 21c would be looked at as a serious t/o.

Gee Jancha, I reckon EKA has much more risk than AUT and the SP confirms this especially over the past month.
I know your not saying that AUT is risky, but if I had to invest 50k of my mum's money then it would be going to AUT not EKA.
EKA is a great little company but very unloved. I wish someone would buy us out and put us out of our misery.

 

[Harvestar]

Any thoughts on yesterday's large jump?

Is this just a delayed response to last week's announcements..........?

 

[estseon]

Any thoughts on yesterday's large jump?

Is this just a delayed response to last week's announcements..........?

Though they've not revealed any drilling plan on Sugarloaf for H1 2012, AUT directors, speaking on the 3rd quarter results over the conference call did make reference to some experimental drilling (closer spacing & HiWay fraccing) and Sugarloaf was mentioned. Perhaps they were referring to the drilling revealed in AUT's provisional plan but perhaps they were referring to the as yet undisclosed H1 drilling (if any).

Brioche, in terms of acreage, has the potential to increase EKA's reserves by a multiple and the company has been strongly hinting that they expect good well performance. Only the drill bit can confirm that. But the first step will be to find a neighbour to do a lease swap with. News of that should be positive for the share price.

So there are a couple of things waiting in the wings.

 

[jancha]

EKA AGM out for those die hard fans.
I personally like the Brioche project & looking forward to EKA first drill there in 2012. This is one of those companies that you can put away in the bottom draw and wait for it to boom & zoom. Well i'm hoping anyway
• 4,460 acres (100% WI) in Burleson and
Washington counties
• Eagle Ford Shale average thickness is 250’
and at depths of 10,500 to 12,000 (similar
depth to Sugarloaf)
• The technical work will deliver an initial well
location to confirm the productivity of the
Eagle Ford, and test the Austin Chalk
• The well design will incorporate current drilling
and frac practices from the Sugarloaf acreage,
which is yet to be applied in the Brioche area
• Eureka’s strategy is to farmout a portion of the
working interest to manage capital
commitment
• Currently assessing farmout options
• Targeting to drill first well in 2012

 

[Kremmen]

Gee Jancha, I reckon EKA has much more risk than AUT and the SP confirms this especially over the past month.
I know your not saying that AUT is risky, but if I had to invest 50k of my mum's money then it would be going to AUT not EKA.

I've been thinking about this comment and just can't make any sense of it. On any metric you choose (income, acres, production, etc), EKA is vastly better value than AUT. AUT is much closer than EKA to the price analysts reckon it's worth. The only advantage AUT has is pure size and therefore liquidity and being in the ASX 200.

Whether it was my money or your mum's, I'd be putting it into EKA.

 

[mattyhammer]

I'm no charting expert, but I'd be willing to bet EKA makes a directed line north very soon. Since it's lows 3 months ago at 16c, it has had higher levels of support after each wave. After a decent jump in mid Oct to 22/23c it leveled out to a resistance of 19/20c. The next wave up took us to a high of 25.5c (which was probably a little overbought at that stage) but then has settle back into a range of 20/21c. It's not much, but the momentum is positive. I would bet within the next week we'll see a new, recent, high of around 26/27c....maybe even higher if it becomes 'popular' for a while. Anyway, just speculative opinion and inciting some discussion.
In no way am I a registered professional or recommending anyone adhere to my thoughts. DYOR!

 

[martyfar]

Hey Matty, I don't think we should lose sight of the FACT that 21.5c for EKA is a ridicioulosly low price and shouldn't be condoned by any level of acceptance on the part of ÃœS the shareholders. Don't lose sight of the share's fundamental value when directly compared to AUT's Sugarloaf acreage (arguably $80,000 per acre), these are the EXACT same acres held in partnership with EKA. Doin the sums : EKA holds 1500 Sugarloaf acres ... 1500 acres x $80,000 = 120,000,000... divide $120,000,000 by the number of shares EKA currently has on issue 237,000,000 and you get a share price of 50.6 c per share.

This share price absolutely ignores (and 'doesn't include) the other 5,000 or so acres EKA holds in the Eagleford Shale, neither does it include the 5 mil EKA has in cash.

Now it may be fair enuff to grant AUT a bit of a premium related to being listed on the ASX 200, and the fact that it has a higher market capital, and greater daily volumes, but even when all that is taken into account 21.5c for EKA is well well below what its fundamental value and common sense would dictate.

I am not a ramper !!! but folks this share IMO has a huge, as yet not understood or acknowledged, potential to the upside


Disclosure : hold both EKA and AUT