EMP - Emperor Energy

[Smurf1976]

Any idea what this is worth @Smurf1976 ?
I've got no clue about gas, cubic feet things and stuff, costs. NAFC.

Taking their claimed discoveries at face value, so not questioning whether the quantities are real or not, then at $10 per GJ (approximate price over the past few months prior to the recent jump) then:

P50 Un-risked Prospective Gas Resource in these upper sands assessed at 622 Bcf

That's 650 PJ (petajoules) or worth about $6.5 billion.

New Seismic Survey data significantly reduces risk on previously reported 1.226 Tcf
Prospective and 150 Bcf Contingent Resources in the Judith and Longtom sands within the Judith Gas Field

At $10 per GJ that's about $14 billion.

However there is the question of:

Cost to develop the field and get the gas out of the ground and to shore.

Exact composition of the gas. How much of it is methane (natural gas), how much is ethane, propane, butane? And how much is inert and of no value? And crucially, is anything present (eg mercury) that makes processing problematic and expensive?

I note that at present they seem to be looking at building a separate processing facility (rather than selling the raw gas to an existing facility) and processing gas at the rate of about 80 million cubic feet per day. At $10 per GJ that's about $840,000 per day or just over $300 million a year before any costs are taken into account.

That's just doing the math based on the claimed reserves etc and taking them as correct. In the real world some variation is likely.

I've used $10 per GJ as the price. Given that price is highly volatile at present that's really just a round figure approximation - a couple of years ago $6 would be closer to it but the current spot price in Victoria is $14.84

 

[greggles]

EMP is an interesting micro cap gas play that has recently been brought to my attention against a background of booming natural gas prices.

The company is claiming that their Judith Gas Project in the Gippsland Basin has a 1.8 TCF P50 Prospective Recoverable Resource and they are aiming for 80 MMSCFD plateau production over 25 years. A Judith-2 Appraisal Well is to de drilled in 2023 to define reserves.

Market cap is presently ~$7.5 million and there is some positive share price movement today.

If management is correct, this is a huge gas resource potentially worth billions. The key word there is potentially as there are many variables and risks involved with actual gas production not expected until 2027.

Still, this would appear to be a company worth investigating further. Their Presentation for the RIU Good Oil and Gas Conference, released yesterday, makes for interesting reading.