ESG - Eastern Star Gas

[Dukey]

Sorry about that then Dukey, my bad. Maybe a mod could move it?

ESG in trading halt this morning. Announcement incoming.

I have been awake since 5pm. Bedtime!

No worries - pretty quiet over on WCL thread.

I looked at them a while back, but the flow rates etc didn't impress. Their biggest asset is being 50/50% with BG!! IMO.

COI is one that I think is starting to look interesting since a recent restructure and merger. If I'm not mistaken they are also involved in Nth NSW with ESG and orion. In fact ESG/Orion farmed into the COI tenements - PEL 427/428. COI will be 20-25% carried after two holes this year.

The exact nature of this cap raising for ESG will be interesting to see. The dual-lateral announcement could prove to be very significant I think - it must improve efficient extraction quite alot.

 

[joeyjoejoe]

hi guys,

can any1 shed any light on the trading halt? or will we just have to hang tight until thursday morning?? did i read the last post right.. possible cap raising?? and if so.. will the market respond bull or bearish... id actually guess sideways if anything

thank you all so much for your replies in relation to the CSG list.. im sure they will prove useful in the future...... although im guilty of putting most of my eggs in the energy sector.. the least i can do is spread it around ..

BOL to all holders.

Cheers.

 

[JTLP]

Capital raising will all depend on who to, how many and at what price...

Most likely the issue price will be under the last closing price (as nearly always) so as to entice whoever is buying

DNH

 

[joeyjoejoe]

i see well i guess if that happends it means the SP will fall to whatever the offer is........and its a double whammy for me as i have no much capital left.... but i might be able to scrape somethin together.

 

[JTLP]

Perhaps not...see NCM

Issue @ 27 from memory and still well above that. But I think when they actually come on to the market is when things slip down (correct me if I'm wrong)

 

[grace]

Perhaps not...see NCM

Issue @ 27 from memory and still well above that. But I think when they actually come on to the market is when things slip down (correct me if I'm wrong)

I would love a SPP - come on, be loyal to your die hard followers like me. I wonder if we will get one? Probably not.

 

[grace]

News from The Herald today. Mmmm, not a happy chappy am I. Where is our SPP Directors? I've been institutionalised most of my life....school, Uni....

Turn on the gas
The NSW coal-seam gas hopeful Eastern Star Gas is the latest company to tap shareholders for cash, through a $50 million capital raising. It is understood Eastern Star is seeking to raise $50 million by offering institutional investors new shares at 55c, a 23 per cent discount to the previous closing price of 72c. Its broker, Patersons, has underwritten $30 million of the raising.

The cash will fund its campaign to prove coal-seam gas in NSW is a viable business. At the end of the December quarter Eastern Star had no debt facilities and $27 million in cash reserves. It said drilling commitments in the next quarter would cost $18.4 million.

 

[joeyjoejoe]

thats very very bad news if u ask me?? does any1 expect the SP to tank to 55c

how will this affect the SP?????

BS....why dont we get the option to buy for 55c

my entry price was 52.5 but i still cant really afford to cop the loss. ESG has been propping up some of my losing trades


PS - .........the above "BS" is not a typo

the idea has merit.. but i am dirty that the big boys get a slice @ 55c

whos to say they dont just dump it on mass into the market depth and wipe out the SP right back down to 55

?????????????

 

[beerwm]

Well, i guess the idea that if you gave it to everyone - not investors*
it would be dumped on the market.

ESG will be 50million better off after this, so its not really a negative in the long-term.

 

[Dukey]

thats very very bad news if u ask me?? does any1 expect the SP to tank to 55c

how will this affect the SP?????

BS....why dont we get the option to buy for 55c

my entry price was 52.5 but i still cant really afford to cop the loss. ESG has been propping up some of my losing trades


PS - .........the above "BS" is not a typo

the idea has merit.. but i am dirty that the big boys get a slice @ 55c

whos to say they dont just dump it on mass into the market depth and wipe out the SP right back down to 55

?????????????

You may yet get a bite. 'Institutions' sometimes get first bite of the cherry - with a similar deal offered to shareholders soon after - to keep them happy i guess.

but either way - sp often retraces for a while BUT the cash is much needed for exploration/devel so ???? which is better? sp won't be down for long IMO.

 

[sinner]

thats very very bad news if u ask me?? does any1 expect the SP to tank to 55c

how will this affect the SP?????

BS....why dont we get the option to buy for 55c

my entry price was 52.5 but i still cant really afford to cop the loss. ESG has been propping up some of my losing trades


PS - .........the above "BS" is not a typo

the idea has merit.. but i am dirty that the big boys get a slice @ 55c

whos to say they dont just dump it on mass into the market depth and wipe out the SP right back down to 55

?????????????

You didn't even have to DYOR on this one, chops (wherever he is) was mentioning capital raising ages ago.

It was clearly on the table, if you didn't like the prospect you shouldn't have invested till after the capital raisings.

 

[kingbrown]

If can sell a few and buy back cheaper i will

looking at the sells sitting in there this moring
It appears plenty have the same idea

Some ppl are really crook about not being offered the same
discount deal that the institutions have been given

Maybe we will get something as thats only fair ?

 

[kingcarmleo]

King

if u notice in the announcement case says " a good opportunity for EXISTING shareholders". If TRU Energy is one of them we should be excited considering the privatization of NSW energy.

 

[TheAbyss]

thats very very bad news if u ask me?? does any1 expect the SP to tank to 55c

how will this affect the SP?????

BS....why dont we get the option to buy for 55c

my entry price was 52.5 but i still cant really afford to cop the loss. ESG has been propping up some of my losing trades


PS - .........the above "BS" is not a typo

the idea has merit.. but i am dirty that the big boys get a slice @ 55c

whos to say they dont just dump it on mass into the market depth and wipe out the SP right back down to 55

?????????????

Whilst the raising isn't the news holders were hoping to hear, it is hardly a doomsday message. The company will be cashed up in order to increase 2p/3p reserves to in excess of 1300 pj. That makes them a healthy target in my view for the M&A players and is good news to me.

Regarding the placement to instos at .55, again i don't see you having a problem. Sell at .675 now and realise a profit of 34% then wait for the day traders to head off to their next play and the SP heads towards the 55 cents mark which they invariably do on cap raisings.

Then if you are a true believer by back in again. If not keep your gains and move on. No problem a sit never hurts to chrystalise a profit.

Failing that do nothing and wait for the next piece of news as the CSG plays are a wonderful thing and have been for a while now.

Find the positives Joey!

 

[joeyjoejoe]

Thank you TheAbyss, I found your reply the most useful. I agree with what you say. the open was rough but It got back up there to .68 I had my finger on the trigger at around .66 ( for a .68 sale ) but the 1,000,000+ on the buy side @ .65 gave me some confidence although it eventually left..... Sitting tight at this stage... probably could sell and re buy (for cheaper) as others seem to be doing but I think I will just stick with a long term view on this one and see what happened as a necessary evil.

Sinner: I also agree with what you said... the cap raising was always a distinct possibility... but we all must admit the price rose steadily in the lead up to the announcement so the offer of 55c (23% discount) was a bit more of a kick in the guts than it had to be but I guess this secured the funds anyway...

As the old saying goes "it’s only a rort when your not in it!" hahaha

I want my slice @ .55 LOL......

although.....getting a slice @ .55 means very little if the SP is allready @ .55 (thats hardly a discount!)

We willl see how we go.
BOL to all holders.... and hopefully well see the SP back in the green some time soon

One last note...

Is there any1 out there who believes confidently the price will hit .55c in the next few days/weeks?

Today gave me some confidence that the market is taking the good with the bad.

 

[kingcarmleo]

Your best chance at a figure closer to 0.55c is march 18 when the new shares are introduced. MEL is doing a 1 for 8 rights issue as their cap raising.

 

[joeyjoejoe]

Your best chance at a figure closer to 0.55c is march 18 when the new shares are introduced. MEL is doing a 1 for 8 rights issue as their cap raising.

does any1 think there will be any on market dumping (s) on this day????

and if so obviously it would be in our best interests to sell monday and buy back after the 18th?

i would still invest the captial but the change that i would own more shares.

 

[Datsun Disguise]

does any1 think there will be any on market dumping (s) on this day????

and if so obviously it would be in our best interests to sell monday and buy back after the 18th?

i would still invest the captial but the change that i would own more shares.

It would surprise me if there was. I don't think these were sold to the punters. But always be ready for an opportunity!

 

[joeyjoejoe]

im regretting my choice not to sell at .68 when i had the chance only days ago.. i cancelled my order stupidly...to see it go to .69

i crumbled under the pressure early morning and exited at .60 only to see it go back to .64 within minutes..

i should of known.. the sell side was very weak.. all single entries all the way down to .60 it only took one buyer to clear a few lines..

but im still pretty sure we will see .55 soon...... which is my prediction that i hoped did not come true


my order is back on the buy side @ .55 for the same amount of shares.

 

[pointr]

On bloombergs site today ERM power is going to build a 640MW gas fired power station in Wellington NSW. They state the 'energy retailer who will supply the gas will also purchase the electricity. This may or may not benefit ESG but it is just one more fundamental for ongoing gas demand in NSW