Australian (ASX) Stock Market Forum

ERH - Eromanga Hydrocarbons

Cheers for the update phil. As per usual lacking in total information. Every other company would tell you current flow rates on klick. Erh gives you april oil sales figures, and profit for that month. Its like nearly july? How this information would be useful to shareholders is beyond me? Is the well not pumping now? Is it shut in, under workover? Are the flow rates that bad? Have the flow rates dropped now? Why cant current flow rates be given? The share price is at the level it is for a reason. Mainly being this bad reporting. Time for a new ceo i recon.

Anyways lets get back to the information phil has given.

$100,000 sales for the month, at about $90 per barrel, means the klick well produces for erh about 37 Bod of oil net to erh. Or lets say about $1.2m of sales

$75000 is the profit each month, meaning $900,000, profit for the yr

Overheads for last yr where $1.440 million.

ERH are stuffed when it comes to getting a bank loan, no bank is going to lend money to a company that lose $600k a yr. So the only option is to get the money from shareholdersm or the fortrend facility.

How on earth is erh going to fund the next two wells? Let alone pay for admin. Interesting to note that the admin for the current quarter is only 70k, however the rest of the 9 months it is $1.082m. Erh always start the yr of paying about 500k in the first quarter in admin costs. So erh may run out of cash at the end of the first or second quarter next financial yr? Only have $500k in the bank? Erh is one director down, so they should save a few hundred grand a yr?

What we can gather is a capital raising needs to take place asap, one there no cash left, and the money will run out in 6 to 9 months, two make it progress till its cash flow netural by drilling the next two wells.

Erh have to continue to drill wells in amercia, this is the only way forward. The brazilian acerage have been a disaster, and retention and no drilling, is what needs to take place. No more money should be spent in brazil until its on erh terms
 
cheers, sold out of those cheap shares. Should be a capital raising soon. I will buy back then
 
cheers, sold out of those cheap shares. Should be a capital raising soon. I will buy back then

Cant believe i made a $ out of these guys. Still down heaps. Cant hang onto the shares very long in this one, as the selling pressure is so high. Only bought because christian would have been selling at any price, a crappy vague announcment and people bought. Just dont understand that. Dodged a bullet i recon. When the cap raising coming. Hurry up
 
Been thinking about this stock alot lately, and have come to the conclusion on why we are 2.6 cents. The main one is communication by the company. The reporting by the company is shocking. The person responsible for this is the ceo, and so i believe we need a change. Anybody agree? Never thought like that before, because phil is a good communicator on the phone. Puzzled on why his announcements are structured and worded the way they are
 
wow, management are only going to take out 10k for administration next quarter. Wonder why? Good to see they dont want to bleed the company fully dry. Cant see how erh is going to fund its well commitment in usa?, when they havent even gotten the reciepts from May and June for the klick oil, and its like august. Phil cant even bring himself to release what the may and june production figures where for klick. I think the ASX will be ringing him for disclosure? Its like pullking out teeth with this one

Just a note for phil, if you want to raise capital from investors you need to disclose current production rates (August) not what happened in April. Surely production is more than april now. If not, disclose it. Not hard
 
If gfc2 happens, this company is stuffed. I have been calling for a capital raising at higher prices, and nothing happened. I really fear what could happen in the next 6 months because the company doesnt want to raise capital, and has negative cash flow and no money left in the bank. Its almost like management have been "asleep at the wheel". Be progressive, be aggressive with the company. Yes things have gone wrong in the past, get over them, keep trying, cos if you dont we are ALL STUFFED. Lets drill more wells in amercia, if they are not commercial, find some new acerage. Start again. Try. PLEASE
 
nope looks like no one wants to bid. Shame would be cheap at current prices. All you would need is to clear the board, put a new board in place and restart brazil and amercia. Everybody i talk too says its too hard, better to look elsewhere. The company cant survive without capital. Might as well sell out totally and invest my scraps some where else, otherwise this stock will do my head in.
 
where has the volume gone. No one is selling or buying? Should i just dump and get rid of the buyers. My fear is if i do this will create another low, and hurt everybody else who still has the stock. Might just wait and see. Phil should announce some thing soon that will get the volume going a little bit
 
capital raising at 2 cents. It was bound to come. The disapointing part is the money isnt going to be used on klick. Klick is pumping 60 bod. So the revenue into the company isnt that great. Must have stuffed up the well. Hopefully its nothing to do with the cement plug, like brazil was. This must be the last try for this board, anymore mistakes or bad lucky will force the board out. Im hoping they can do it. I will be taking up my shares, because the way i look at it, surely the company has learned form previous drills, and going on averages, they should get one right soon or latter.
 
can you buy more than then your rights. Might buy more than my application. This drilling is going to be company making or company distruction. They are going to get the drilling right this time. I can feel it. Bring it on.
 
I love this high risk drilling. I think the market likes it too, erh is staying above 2 cents. If it drops below 2 cents i am loading up. This ones a real winner. Even if erh doesnt get the required BOD, the drilling reports, will be gold. Phil has a habit of making the drilling reports confusing. And usually through that confusion, the share price goes up. Just dont hang around for the production reports. This is usually where it goes all wrong
 
looks like no one took up the rights. I took up a few, but spent my money on the market when the share price went to 2 cents. Got out with a nice profit in the high 2's. With 87m shares to sell the underwriter has to get rid of them. Im getting rid of all my shares before they do. Everybody else should do the same. I see myself buying shares under 2 cents in the near future, and then get ready for the pre drill spike and then sell again. Very easy to play this stock. When the stock goes up for no reason, thats the sell signal. Easy
 
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