EKA - Eureka Energy

nioka said:

Capital raising, shareholders get offered 1 for 6 at 17c. A good result and I'm happy with that.

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And they don't go ex until this coming Friday, so there is still time to buy more and be part of the cap raising.

nioka said:

I'm waiting to see an offer from AWE or AUT come up now. Accellerated by the trading halt and the possibility that EKA is still looking at their options.

I'm still a bull. I still believe that the AUT and EKA SP was held back by the AWE offer. They aligned themselves to the offer rather than adjust to the good news following the Hillcorp work. I believe that the ADI SP would have easily reached 60c by now had it reacted to the news rather than be governed by the AWE offer price. We were robbed.....

We will be robbed again with EKA if the new capital finds itself in the hands of AWE at an early stage.

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its a share that you can be bullish on nioka, its about to be taken over in the very near term.. awe did not take a stake in it for no reason..

i cant see how adi would be above the .42 AWE bid price, aut only managed to get to .80, and has been in that hold pattern for a little while now, basically as long as the adi bid was around.. but it should be $1.10 if adi is .42..

if aut was trading at $1.50 i would agree adi should be .60

nioka said:

Capital raising, shareholders get offered 1 for 6 at 17c. A good result and I'm happy with that. The additional capital should be productive and not too dilutive.

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the awe buying at .20 is being played well by the eka management, diluting from that base is clever.. and eka is selling the share at the correct ratio to the current aut price..

hard to see eka run up now..

Agentm said:

its a share that you can be bullish on nioka, its about to be taken over in the very near term.. awe did not take a stake in it for no reason..

i cant see how adi would be above the .42 AWE bid price, aut only managed to get to .80, and has been in that hold pattern for a little while now, basically as long as the adi bid was around.. but it should be $1.10 if adi is .42..

if aut was trading at $1.50 i would agree adi should be .60

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I firmly believe that, in the absence of the AWE bid that the fundamentals alone would have increased tha SPs of all three well beyond the price that set the cap. That cap was the AWE offer price.AWE will not find it as easy to cap the EKA price and far less easy now to cap the AUT price. I think that anyone sitting back waiting for AUT at 75c will be extremely disappointed.

buyers and sellers have dried up - yesterday was stacked with buyers, am i right in saying they have just got in for the entitlements issue and now we're going to have a flat period with limited activity until the issue is complete?

My choice of stock of the day (for discussion please)

I've been a long time investor in EKA and have traded in and out with AUT and ADI as mentioned many times in the past to a point where I know many here are bored with any mention of the fact. It never bores me as it has been a great little earner these last couple of years. It is still alive and well and certainly not boring.

We are now seeing a point where EKA is moving from being a wildcat prospector to being an oil producer as the new partner, Hillcorp, proves their worth in the drilling program. Even though there has been considerable dilution with the shares and the farm in EKA still has a valuable interest in the Sugarloaf oil shales. Always the little brother but still part of the family.

The current share offer, an SPP of 1 for 6 has been offered to existing shareholders which shows that the directors have its shareholders interests at heart, unlike ADI where they allocated new shares to AWE and the funds, excluded existing holders. We saw what then happened to ADI. This offer wmay hold back the SP in the short term but the additional funds will ensure that the company is in a position to share in the benefits of production drilling and lead to increased future income.

EKA, as I see it is worth investigating The SPP opens on 26th July. Current purchases and sales are ex rights to the SPP.

DYOR.

There hasn't been any posts here for over a week so im keen to get this thread moving again.
EKA has been a great little money earner for a lot of traders in the past and I would like to think that its not at its top ATM.
With the SPP happening ATM we could see the sellers controlling this stock as it did and still is with AUT.
The point is where is EKA heading from here? For the 4th time in the last 2 months (08-06-2010) it has hit but not broken the 22 cent resistance line, I have shown this with arrows.
The 10 day average is up as is the 68 day average and the 90 day average is up aswell and the bollinger bands are tightening so all looks good on the surface but the SPP could see a minor SP drop over the next week or two.
Does anyone think that a takover is possible/likely with EKA?

I hold EKA
DYOR

huitzii

that is the plan that other have for it, but there would be debate whether the various holders of notoriety in the register have the same ambitions.

many things could have happened but didnt in the last year, but the dilution of the share and the delays in moving forward has got its advantages and disadvantages

my view is that the takeover for eka by awe would be better served with one happening now. if the timing on adi was correct for awe atm, then the timing for an eka takeover must also be right now.

a nice bid at .28 for the share would be a great start point, aut would probably not merge eka for the same reasons that it previously hasnt..

a take over is something i fully expect

but will it happen?

Agentm said:

huitzii

that is the plan that other have for it, but there would be debate whether the various holders of notoriety in the register have the same ambitions.

many things could have happened but didnt in the last year, but the dilution of the share and the delays in moving forward has got its advantages and disadvantages

my view is that the takeover for eka by awe would be better served with one happening now. if the timing on adi was correct for awe atm, then the timing for an eka takeover must also be right now.

a nice bid at .28 for the share would be a great start point, aut would probably not merge eka for the same reasons that it previously hasnt..

a take over is something i fully expect

but will it happen?

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That possibility is one that will be harder for AWE to crack than it was with ADI. EKA has looked after its shareholders and I suggest the directors will keep looking after them. I suggest they have more spine than those at ADI.

Just look at the results today. 57,000 barrels of top quality condensate in 60 days from one well. Plus gas. Kawolick progressing well. If awe are interested, and I guess they are, then about 50c would be a starting price.

EKA just touched 24c.
32 buyers facing 6 sellers.
Buying quantity now outnumbering selling quantity by more than 10:1.

Kremmen said:

EKA just touched 24c.
32 buyers facing 6 sellers.
Buying quantity now outnumbering selling quantity by more than 10:1.

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Overall there isn't a lot of volume. Lots of bot trades that make up the majority of trades. I suggest the activity is trying to bring out some sellers but it doesn't seem to be having a lot of success. Maybe it is AWE trying to accumulate without putting in a big order and putting up the price.

nioka said:

Overall there isn't a lot of volume. Lots of bot trades that make up the majority of trades. I suggest the activity is trying to bring out some sellers but it doesn't seem to be having a lot of success. Maybe it is AWE trying to accumulate without putting in a big order and putting up the price.

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Does Awe hold a large percentage in EKA? i can quiet work it out? there isnt a list of any major holders as far as i can see.

...............Awe bought just under 5% of Eureka after finalising the ADI purchase from memory............

On good news today we saw EKA break the dreaded 22 cent resistance and move on to break the next level of 23 cent resistance to finish the day on 24 cents, this level hasn't been seen since June 2008.
It was good to see that not many offloaded there shares with the SPP and IMHO if the current holders stay tight tomorrow could be another good day.
UP UP UP EKA
DYOR

now up to 26c-27c
I had an order in for 21.5c I cant see it falling to that level
to many buyers in and not enough sellers
how high will this go
opinions welcome


James

J&M said:

now up to 26c-27c
I had an order in for 21.5c I cant see it falling to that level
to many buyers in and not enough sellers
how high will this go

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No idea, directly. I certainly think (and hope) you've missed the boat on your 21.5c order.

I suspect EKA will continue to follow AUT. When I first started watching these stocks in Feb, AUT was 3.8x the price of EKA. EKA appeared to be ignored at times, while all the focus was on ADI and AUT, but has caught up and overtaken that ratio at times.

WRONG'UN put a graph of the relative prices over time on the AUT thread, showing mostly 3.5-4x, with his most recent value at 3.83x.

I think we can factor in a little more value to EKA on the basis of being a possible takeover target.

J&M said:

now up to 26c-27c
I had an order in for 21.5c I cant see it falling to that level
to many buyers in and not enough sellers
how high will this go
opinions welcome
James

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How long is a piece of string? Same answer.

However I will say this. My investment account has more EKA than any other share both in numbers and in value and none of them are for sale at this stage. In my trading account I have been selling some EKA and buying AUT because I believed the balance was in EKA's favour. That imbalance is decreasing slightly.

Why the increase in the SP?. I have said for some time that the AWE offer for ADI held back the reflection of the good drilling results in the SP of all three. Now that is out of the road the SPs are showing their value.

Speculation regarding EKA being a possible takeover target has also probably boosted the EKA SP.

EKA is also helped by the fact that twice now EKA has given its shareholders first chance to take up a capital issue. The last one at 17c was the equivalent of giving a divvy to shareholders with a possible 60% gain now on the issue price.At 1 for 6 issue that is a 10% overall return.

Is it going to keep rising?. All we need is increased production and that seems most likely in the very near future.

Should you sell now?. That depends on your attitude to risk and your own need to take a profit now. Only you can be the judge.

Should you buy now and what should you pay? Same answer.

Good return for EKA today, but I think its almost made its top for now (IMHO about 25% of AUT'S SP)
AUT could make $1.10 tomorrow which would make EKA at about .28 cents.
I also think that the possibility of a takeover is worth a few extra cents, so an SP of .31 cents maximum this week.
A top today of .28 cents is a level that we haven't seen since 19th November 2007.
Good luck to all EKA holders
I hold EKA
DYOR

EUREKA ACQUIRES OPTION ON NEW ACREAGE IN THE EAGLE FORD TREND
http://www.asx.com.au/asxpdf/20100810/pdf/31rsxs2xt2m8mk.pdf

the Board is pleased to announce that a wholly-owned US subsidiary of Eureka has signed an option agreement to acquire a 100% working interest (73% Net Revenue Interest) of a 761.5 acre block of leases on the eastern extension of the Eagle Ford trend, some 90 miles north-east of Eureka’s producing Eagle Ford Shale-Austin Chalk interest in the Sugarloaf Project. On exercise of the option the new lease block will increase Eureka’s overall net acreage position in the Eagle Ford trend by more than 50%.
The lease block is located in Fayette County, south of the major producing Giddings Oil Field and west of Apache Corporation’s extensive Eagle Ford Shale lease holdings in Brazos, Burleson and Lee Counties. Three vertical wells were drilled on the leases during the 1980’s Austin Chalk exploration boom. All of those wells intersected Austin Chalk with indications of oil, underlain by Eagle Ford Shale at about 10,700 feet. Wireline log analysis indicates that the lower Austin Chalk and the Eagle Ford Shale have significant, mostly fracture porosity (up to 18%) and the Eagle Ford and the lower Austin Chalk are both interpreted to contain hydrocarbons.
Based on the results from recently drilled horizontal wells in the emerging regional Eagle Ford trend, Eureka believes that the lease block is located in the oil leg of the trend. Eureka’s assessment of the data from old wells on the lease block suggests that horizontal wells with appropriate multi-stage completions, similar to those successfully applied at Sugarloaf, would produce hydrocarbons from the Eagle Ford and lower Austin Chalk.
Wireline log analysis also indicates that all three existing wells intersected hydrocarbon bearing Wilcox Sandstone at depths around 6300 feet. This represents a significant secondary target within the block.
Eureka is continuing its extensive review of well and seismic data from the leases and surrounding area, with the objective of selecting locations for an initial horizontal well to test the primary Eagle Ford Shale-Austin Chalk target and the shallower Wilcox secondary target.
Eureka intends to acquire the lease block from private interests, resident in the USA. Total consideration payable to the vendors and introducing parties is USD 821,500 in cash and 900,000 new EKA shares. Of this total, USD 200,000 has been paid as a non-refundable option fee, with the balance due upon exercise of the option which must occur by the 20 August 2010.

So Discuss. what is this new area like?

why wasnt it snapped up by someone else earlier? Will hilcorp be on board doing the drilling?

what are others thoughts. i was going to jump in on the EKA ride this morning..

I Have been trying to find Fayette County on the map.. but come up with nothing!