EKA - Eureka Energy

[S_Hug]

Announcement is out...share's down a couple of cents..

ASX RELEASE9 May 2007 Eureka Energy Limited (ASX:EKA, "Eureka"
or "Company")Share Placement Eureka is pleased to announce that it has agreed the placement of up
to 7,875,000 shares at an issue price of $0.20 per share to raise up to
$1,575,000, before the costs of the issue. Shareholder approval is not required for the placement, which is within
the 15% limit available to the Company under Listing Rule 7.1. In addition, the Company has agreed subject to shareholder
approval to issue a further 2,125,000 shares at the same issue price
to raise $425,000 before issue costs. A notice convening a general
meeting of shareholders to consider this additional placement will
be sent to shareholders in the near future. Funds raised from these issues will be applied towards the Sugarloaf
project and for general working capital. Shares will be issued to
Institutional and other Sophisticated Investors including clients of
Stripe Capital - Corporate Authorised Representative of Australian
Stockbroking & Advisory Services Ltd.At the general meeting of shareholders to be convened, approval
will be sought for the issuance of a total of 850,000 incentive
options to directors. The terms of the proposed incentive options
will include an exercise price of $0.35, expiry in 3 years and with
50% (425,000) vesting on 30 June 2008. Yours faithfully
EUREKA ENERGY LIMITED

Alex Neuling
DIRECTOR

 

[Broadside]

Announcement is out...share's down a couple of cents..

ASX RELEASE9 May 2007 Eureka Energy Limited (ASX:EKA, "Eureka"
or "Company")Share Placement Eureka is pleased to announce that it has agreed the placement of up
to 7,875,000 shares at an issue price of $0.20 per share to raise up to
$1,575,000, before the costs of the issue. Shareholder approval is not required for the placement, which is within
the 15% limit available to the Company under Listing Rule 7.1. In addition, the Company has agreed subject to shareholder
approval to issue a further 2,125,000 shares at the same issue price
to raise $425,000 before issue costs. A notice convening a general
meeting of shareholders to consider this additional placement will
be sent to shareholders in the near future. Funds raised from these issues will be applied towards the Sugarloaf
project and for general working capital. Shares will be issued to
Institutional and other Sophisticated Investors including clients of
Stripe Capital - Corporate Authorised Representative of Australian
Stockbroking & Advisory Services Ltd.At the general meeting of shareholders to be convened, approval
will be sought for the issuance of a total of 850,000 incentive
options to directors. The terms of the proposed incentive options
will include an exercise price of $0.35, expiry in 3 years and with
50% (425,000) vesting on 30 June 2008. Yours faithfully
EUREKA ENERGY LIMITED

Alex Neuling
DIRECTOR

working capital for Sugarloaf, I like the sound of that, not so keen on incentive options they already have plenty of incentive

 

[Agentm]

dont worry broadside,,

if they were not feathering their own nest then you could say there wasnt anything worth while out there that they are doing to make that decision..

for me the message is clear and loud, for others they have no clue what the significiance of the announcement is..

make the best of it while its at the price it is if you understand the SL prospect. it wont be long before you will look back at todays prices and be staggered as to why you didnt get more..

 

[Broadside]

dont worry broadside,,

if they were not feathering their own nest then you could say there wasnt anything worth while out there that they are doing to make that decision..

for me the message is clear and loud, for others they have no clue what the significiance of the announcement is..

make the best of it while its at the price it is if you understand the SL prospect. it wont be long before you will look back at todays prices and be staggered as to why you didnt get more..

Don't tempt me AgentM I am already full to the brim on ADI and EKA I can't let greed get the better of me...mind you I am cashed up after selling some AGS :

 

[Agentm]

a few weeks back they had $1.33 mill in the bank.. enough for some short period of time..

Now the JVP's are obviously looking at over $20 Mill needed for the near term at SL..

I would say some there is some heavy duty planning going on..

I know its completely missed by the market, but the SL play and its present 80 sqaure kilometers of leases which is getting larger and larger, must be getting some major activity on it very very soon..

thats is some serious money for an untested 40bcf play!!! or is it 400bcf+ play???

 

[Broadside]

a few weeks back they had $1.33 mill in the bank.. enough for some short period of time..

Now the JVP's are obviously looking at over $20 Mill needed for the near term at SL..

I would say some there is some heavy duty planning going on..

I know its completely missed by the market, but the SL play and its present 80 sqaure kilometers of leases which is getting larger and larger, must be getting some major activity on it very very soon..

thats is some serious money for an untested 40bcf play!!! or is it 400bcf+ play???

From what I read at the forum that shall remain nameless EKA has rights to all depths on the new acreage which is fantastic news given it is the shallow rights that will be where the action is.

 

[Agentm]

hey broadside,, now your onto something...

a few comments..

1/ eka always had the same rights as all other JVP's for some time..

2/ the shallow targets have certainly been amazingly understated (did anyone bother to research further from my post on adi last week on couch oils new website and to look at the reports and spot something about SL??)

3/ why are the jvp's buying rights to all depths if the sands were not productive in this exploration well designed to test all zones of interest (has anyone got the point yet??)

4/ its all there, couch oil isnt hiding their asperations, and eka isnt stuffing around, they want to spend the cash there.. maybe the penny will drop soon

 

[Broadside]

hey broadside,, now your onto something...

a few comments..

1/ eka always had the same rights as all other JVP's for some time..

2/ the shallow targets have certainly been amazingly understated (did anyone bother to research further from my post on adi last week on couch oils new website and to look at the reports and spot something about SL??)

3/ why are the jvp's buying rights to all depths if the sands were not productive in this exploration well designed to test all zones of interest (has anyone got the point yet??)

4/ its all there, couch oil isnt hiding their asperations, and eka isnt stuffing around, they want to spend the cash there.. maybe the penny will drop soon

(1) my understanding was that previously EKA had rights to all depths on the current drill, but shallow rights over a minority of the overall lease area, now it seems they have rights to all depths over the entire area which erases one of my concerns

(2) I agree the secondaries look great, I will have to check out that Couch website I was away for a couple of weeks and just catching up on things. Maybe Couch is off his leash again now that they have secured the extra acreage.

(3) by sands you are referring to Hosston? I think Hosston is seemingly dead but not yet buried with a chance of revival some way down the track, regardless secondaries should reward big time

(4) I hope the penny drops soon but I am patient

 

[wallave]

AgentM...I checked out the Coil Oil new website. I couldn't find any references to SL. Did you manage to?

 

[chance fate]

... me neither... there's a home page, a list of wells completed and a list of well being worked... but no mention of SL anywhere....

 

[wallave]

It was on the 1st dec,
Agentm put the comments on the adi thread last night.

Nothing since then though

 

[surfingman]

... me neither... there's a home page, a list of wells completed and a list of well being worked... but no mention of SL anywhere....

I think Agent M is referring to this page, good old google:

http://www.couchoil.com/daily1.asp

I dont have anything else to say but need 100 letters

 

[Broadside]

I think Agent M is referring to this page, good old google:

http://www.couchoil.com/daily1.asp

I dont have anything else to say but need 100 letters

no, there is a more recent one surfing man:

As exploration manager for Oil2 Holdings, we hit our first major 21,000’ well.

Each year we have drilled a major well. The Hosston well proved up a 2 TCF project covering 26,000 acres.

In 2004 we drilled Lake Boeuf, an 18,000’ well and found marginal reserves.

In 2005 we drill another potential very large reserve well, South Deep Lake at 19,000’ and found marginal reserves.

So we hope Sugar Loaf is our first major home run. Those deep wells are extremely costly though …. With substantial cost overruns.

 

[chance fate]

...ok... checked it out... thanks... just putting my skeptic hat on for a moment... and couldn't help notice how bad couch's written english is... Hosston we proved up a 2Tcf project - could he have meant to write prospect... and as such an interpretation could be that the well has proved the existence of hydrocarbons in the prospect... ? having said that i like the sounds of what he wrote in the Dec 1 report... and didn't realise the 100 wells refered he envisaged for an oil field development instead of gas... sounds plausible for an acreage that size... gas would be something different i.e. only a few (2?) wells... going to absorb this a bit for my own risk/reward reasons... as they seem very strong comments...

 

[chance fate]

..no mention of oil in EKA or ADI announcements...therefore i'm going to treat Couch announcements with some measure of caution....

 

[Agentm]

if you go to couch oils old site, and look back at all the updates on the sugarloaf well, up until he was told to stop posting, then you will see thay ran exactly as the jvp's all announcements were 100% consistant..

the notorious last post was the one that we all have debated,, if he is so wrong about it, then why?

also on the new site he only mentions 2tcf.. in line with all jvps in terms of gas only at sugarloaf..

we have yet to see any results, and the logs from the well have been posted everywhere.. lot of speculation on the oil part still..

i have not been able to find anything that couch oil stated as not being correct.. he's free to say what he wants

 

[S_Hug]

This is fun to watch.... someone just bought 100,000 EKA at 28c (up 12%). Anyone want to own up...?

 

[chance fate]

... wondering what sp to expect pre-well test on SL.. my guess is around the 40cent mark which is where it was when the shallows were drilled... though now the riskiness seems lower given all the recent announcements...

 

[ShiroKage]

Sorry to be a noob but I don't fully understand the announcement

Is it implying I can buy shares EKA at 20c? Who gets to buy the shares at 20c? Why is it a good thing that they are issuing shares below their trading value?

 

[rub92me]

It is a placement, which means they have already found an interested party that will take all those shares for the 20 cent price. They're not mentioning anything for shareholders...