EMR - Emerald Resources

[nioka]

Re: EMR - Emerald Oil and Gas

A director of EGO sold all of his ordinary shares today (6.5 mil). Leaving a holding of 6.5mil options.
There must be about 1000m of drilling left to reach the target. Does anyone know if it's possible to tell this early if the drill will be succesful?
I hope he REALLY needed the money but seems strange he couldn't wait another week or so if the drill was promising.

From my brief experience with EGO I am suspicious of insider trades. I bought shares in EGO this time last year as a spec when a well was being drilled. 2 days before the results were announced there was an unloading of shares. The well was a duster and the shares sold at a loss for me of 45%. I won't go near them again.
P.S I did make a complaint to the ASX

 

[zt3000]

Re: EMR - Emerald Oil and Gas

Announcment!!!

Elevated gas readings were detected over a 2-3 meter interval at approximately 2,250mMD while drilling interbedded claystones and well cemented sandstones. The significance of these gas readings will be determined once the well has reached total depth and wireline logging has been completed. “Drilling operations are continuing; we are currently 18 days into the well and now around 4-5 days from the primary target, if penetration
rates remain the same as we near the total depth of this well”.

Things should start to get exciting now. Fingers crossed

 

[chicken8]

Re: EMR - Emerald Oil and Gas

announcement just out

quote from the announcement

Elevated gas levels above background gas levels were
detected over a 2 to 3 metre interval at approximately
2,250mMD whilst drilling interbedded claystone and dense,
well cemented sandstones of the marine member of the
Anderson Formation. The significance of these gas readings
will be determined once the well has reached total depth and
wireline logging has been completed.

no movement in sp just yet. looks like they're behind schedule by 4 days

 

[chicken8]

Re: EMR - Emerald Oil and Gas

Texas drilling update is out

currently at 3281 feet of projected primary target of 6400 feet and proposed total depth 8500 feet at Pandura Prospect

currently at 2070 feet of 7350feet at Palito Blanco

Total potential resources are approximately
10 BCF gas and 100,000+ barrels of
condensate

 

[UPKA]

Re: EMR - Emerald Oil and Gas

Texas drilling update is out

currently at 3281 feet of projected primary target of 6400 feet and proposed total depth 8500 feet at Pandura Prospect

currently at 2070 feet of 7350feet at Palito Blanco

these projects r rather small, I think the market is buying up on valentine and its CB interests, so probably not interested in any other news... its a shame ...

 

[chicken8]

Re: EMR - Emerald Oil and Gas

how much is 10 BCF gas and 100,000+ barrels of condensate worth?

not alot of volume in EMR lately. finishing on a green is good though

 

[bhutos]

Re: EMR - Emerald Oil and Gas

these projects r rather small, I think the market is buying up on valentine and its CB interests, so probably not interested in any other news... its a shame ...

well... they're small.. but you're still talking ~20c discvery price between the two. It might not be Strachan-like exaggeration but it's 200%.... should be worth something.

 

[UPKA]

Re: EMR - Emerald Oil and Gas

well... they're small.. but you're still talking ~20c discvery price between the two. It might not be Strachan-like exaggeration but it's 200%.... should be worth something.

i would think they r much less than 20c, as EMR has only 15% working interests in the project, and due to the high success rate, i believe the market has factored in the success of the drill? i mean if we do get some good news out in US, we will see a rise in SP, but i doubt it'll be anything significant. remember the more the leverage, the higher we'll jump on valentine news.

 

[bhutos]

Re: EMR - Emerald Oil and Gas

how much is 10 BCF gas and 100,000+ barrels of condensate worth?

not alot of volume in EMR lately. finishing on a green is good though

HH is AU$6.72/mcf they've got 15% of 30bcf going on plus 100k condensate.
Just on gas thats actually a discovery price of 31c if the spreadsheet isn't wrong.

 

[bhutos]

Re: EMR - Emerald Oil and Gas

i would think they r much less than 20c, as EMR has only 15% working interests in the project, and due to the high success rate, i believe the market has factored in the success of the drill? i mean if we do get some good news out in US, we will see a rise in SP, but i doubt it'll be anything significant. remember the more the leverage, the higher we'll jump on valentine news.

Yeah but the Henry Hub spot gas price is ten times higher than the calcs used in the Canning drill. I might be wrong in using it but it's as good a guide as I can figure. I agree that a lot of Pandura is probably reflected in the current sp. I guess up to 16.8c (80% of the 21c discovery).. but it doesn't leave a lot of room for Valentine and Palito. Really the three drills risked up (and using 1tcf gas no oil in Valentine) and accounting for 2M cash (less than avail but hey it's mostly earmarked.)
means the sp should be closer to 25-26c if I haven't made any silly mistakes (highly likely).

 

[greggy]

Re: EMR - Emerald Oil and Gas

Announcment!!!

Elevated gas readings were detected over a 2-3 meter interval at approximately 2,250mMD while drilling interbedded claystones and well cemented sandstones. The significance of these gas readings will be determined once the well has reached total depth and wireline logging has been completed. “Drilling operations are continuing; we are currently 18 days into the well and now around 4-5 days from the primary target, if penetration
rates remain the same as we near the total depth of this well”.

Things should start to get exciting now. Fingers crossed

In an announcement to the ASX on 30 Aug 07 PCL's General Manager, Matthew Battrick, said "The gas recorded at around 2,250mRT is at a similar stratigraphic level to that from which a small amount of oil was recovered in the West Kora-1 well, a few kms to the east. It is encouraging news as it is not the primary target for this well."
DYOR

 

[YOUNG_TRADER]

Re: EMR - Emerald Oil and Gas

these projects r rather small, I think the market is buying up on valentine and its CB interests, so probably not interested in any other news... its a shame ...

True, but I look at it like this, the CB drilling is company making stuff, now at current share price levels EMR is by far the most leveraged to success when compared to say EGP (given its meteoric rise )

Also the fact that EMR has another 2 wells going means even if CB is a failure (which it most likely will be) there should be some support from possible success at these other 2 wells


(Holding a few for drill success exposure)

 

[mitzter]

Re: EMR - Emerald Oil and Gas

Why do you think CB would be a failure, there aren't really points given that it would be a failure

Ps/ I hold

 

[doctorj]

Re: EMR - Emerald Oil and Gas

Why do you think CB would be a failure, there aren't really points given that it would be a failure

Ps/ I hold

Exploration wells in Australia have a 27-32% chance of success, appraisal wells have 50-77% chance of success according to APEA ,ABARE and a few others.

Valentine/Stokes Bay (they're testing both prospects via a side track) has an exploration and appraisal component. The small target (which is the appraisal one) would be very handy, but the larger riskier target is the exciting one. Chances are it will be a failure - drilling is a risky business.

At the moment they're tracking a few days behind plan because of the concreted nature of the rock being hard to drill through. It could be a good or bad thing or mean nothing - we need a seal to trap the hydrocarbons and cemented can be as a result of the presence of hydrocarbons, but on the other side, if it continues deeper, it's not such a good thing because they don't flow real well. More than likely its not an indicator of anything because it was still 1000m away from the target. We'll know conclusively in about 6 days.

One thing I will say is that the inclusion of a little gas intersection means diddly squat.

 

[greggy]

Re: EMR - Emerald Oil and Gas

True, but I look at it like this, the CB drilling is company making stuff, now at current share price levels EMR is by far the most leveraged to success when compared to say EGP (given its meteoric rise )

Also the fact that EMR has another 2 wells going means even if CB is a failure (which it most likely will be) there should be some support from possible success at these other 2 wells


(Holding a few for drill success exposure)

Hi Young Trader,

Welcome aboard. EMR is indeed the most leveraged to any success. Although very risky, the potential upside is enormous. One also needs to realise that EMR also has US oil and gas interests where it is also currently drilling. EMR is also cashed up. Good luck to all holders. The next week or so will be very interesting in particular. Intersuisse have rated EMR as a SPEC BUY. Hartley's research also looks very interesting, along with positive coverage in the June edition of Resource Stocks.
DYOR

 

[zt3000]

Re: EMR - Emerald Oil and Gas

Hi Young Trader,

Welcome aboard. EMR is indeed the most leveraged to any success. Although very risky, the potential upside is enormous. One also needs to realise that EMR also has US oil and gas interests where it is also currently drilling. EMR is also cashed up. Good luck to all holders. The next week or so will be very interesting in particular. Intersuisse have rated EMR as a SPEC BUY. Hartley's research also looks very interesting, along with positive coverage in the June edition of Resource Stocks.
DYOR

There was a good article in August Edition of Resource Stocks too. They said the well needed to be about 300 bcf minimum to be commercially viable because of the large setup cost involved. Will be watched carefully this stock IMO in the run up to drilling results.

 

[jtb]

Re: EMR - Emerald Oil and Gas

There was a good article in August Edition of Resource Stocks too. They said the well needed to be about 300 bcf minimum to be commercially viable because of the large setup cost involved. Will be watched carefully this stock IMO in the run up to drilling results.

zt,

I haven't read the August edition but it was my understanding that the 300bcf figure being bandied around was a general reserve value (across the entire program) that would underpin the expense of the northern extension of the gas pipeline and thus ensure near term distribution feasibility??

As I mentioned some time ago, Alcoa throwing 40 million bucks at ARQ to pre- purchase gas that they haven't found yet, shows theres a lot of interest in the Canning proving up.

As to the US programs remember NWA will likely be a producer and we have a good piece of that also.

Most importantly, as I wasn't here to pick EMR in the sept stock picking comp' then we're definately going straight to 50c

 

[jama_kj]

Re: EMR - Emerald Oil and Gas

should be a very interesting and exciting week for EMR as the Canning target is due to be hit (based on the last update) either today or tomorrow so we are likely to see results in the first half of the week, i think.

Let's hope its good news

 

[jtb]

Re: EMR - Emerald Oil and Gas

Whoahhh, better put your chinstraps on EMRers.
Some whale just offloaded 90 FPO's and 90 options for the grand sum of $29
Hope they get cheap brokerage.

 

[zt3000]

Re: EMR - Emerald Oil and Gas

Hahaha Yeah i saw that ... whats the point really ... its like going ... here Mr Broker ... have $30 ... its on me

lol

Man when is this thing going to start to move ... surely theres not long now untill the drill results