Empyrean Energy Share Discussion Threads

[judijudi] 08/12/2017 16:21

Sells flooding in at the moment
We ain’t finished dropping yet
:(

[kevjames] 08/12/2017 16:00

Just topped up myself - my view is that they will get a partner to add funds and expertise. With a trashed shareprice they will not want to dilute IMO. They have valuable log data and now decent flow test data and GJ seems convinced this is the gas find of the century in California!!! If he is right, there will plenty who will want to join the party. Be interesting to see if the two US companies, Cirque and CRC show an interest, after they drill Tulainyo.

[rutter] 08/12/2017 15:58

dafrog. Good question. As a non oily I'm interested to hear what those more savvy than me could suggest on the matter

[kumala] 08/12/2017 15:52

:/Just amazing........:/K

[dafrog] 08/12/2017 15:51

What will they do whilst waiting to stimulate? Go to next target? Decommission rig or just wait?

[oilforex] 08/12/2017 15:48

Dempsey looks likely to be proving something special and now EME valued less than that attributed to Duyung. China for free.Even if Empyrean did need to raise a few quid if the testing drags on so what? It's, a deal, it's a steal it's sale of the f'cking century.Always amazed how the herd get things so wrong. Falling over themselves to get in on this in the high twenties and now no one wants to touch it.No wonder those peeps will never give up their day jobs.

[judijudi] 08/12/2017 15:43

Painful
:(

[k7pws] 08/12/2017 15:33

Oops it didn’t seem to load
Apologies

[digger2779] 08/12/2017 15:33

This is just plain crazy.

[k7pws] 08/12/2017 15:32

You beat me to it Stewart. My thoughts are on similar lines. This drill is a compromise to gain information on those deep and large structures. It’s not hit the right spot on the bottom one to be worth stimulating but that was intentional as they want this well to be commercial and hitting the more reliable upper zones in good locations on the way down to assure that was the plan. In fact this is basically what the strachan report says. So of course they will want to see if it can be made commercial.
IMO it looks even more promising

[k7pws] 08/12/2017 15:32

You beat me to it Stewart. My thoughts are on similar lines. This drill is a compromise to gain information on those deep and large structures. It’s not hit the right spot on the bottom one to be worth stimulating but that was intentional as they want this well to be commercial and hitting the more reliable upper zones in good locations on the way down to assure that was the plan. In fact this is basically what the strachan report says. So of course they will want to see if it can be made commercial.
IMO it looks even more promising

[doshdabbler] 08/12/2017 15:20

I'm not sure anyone thinks it's a duster. However, the longer this goes on, the more likely it is that all parties will need to raise. I'm holding off from reentering till I have some clarity

[jemjem] 08/12/2017 15:12

Thanks for that post stewart. Interesting stuff.

[podium] 08/12/2017 15:08

The market has made the call that Dempsey is a duster. Perhaps a brave call to make as it certainly is not that, but whilst the operator sluggishly tries to make something of it we may all eventually be in for a surprise. Let's hope for some news on other projects in the meantime.

[t350toad] 08/12/2017 14:54

If all the new blood is hitting the road, I guess the bb will soon be like the old days...trying to find some positives amongst this sh*t storm!

[jemjem] 08/12/2017 14:28

Agreed Curry. If it is potentially that massive, they need heavyweight help.
SGC down to 30%. EME down to 20% Something like that?
Maybe let a big boy take over Operatorship?

Imo

[davidpines] 08/12/2017 14:17

Under 10p coming

[currypasty] 08/12/2017 14:12

thanks for posting that stew.

If they are onto something very big, how is a farty little company like SGC going to progress it.. most obvious must be a farm out, and keep a smaller free carry?

[stewart4800] 08/12/2017 14:03

Post from coopgare, read and learn like I have,

Here's my take on the latest RNS, I thought I would go through the SGC RNS as it was released.

The well was tested at a rate of 0.14 MMscf/d on a 12/64" choke with a THP of 150psi and a SITHP of over 6000psi. This tells us that the formation is pretty tight as there is a huge drawdown across the perforations for that flow rate of gas that has been reported. This also tells us that the kh (k = permeability and h= height or length) is very low.

The pressure build up they have conducted will give them a lot of information; 1. How large the tank is - they've stated a significant discovery which is good, 2. Is there damage (i.e. due to the perforating or near wellbore due to the drilling mud - this is measured as a skin).

The fact that they have gone direct to stimulation tells me the following:
1.The issue is probably matrix permeability and not near wellbore however, a hydraulic stimulation would also allow you to bypass any near wellbore damage
2. The stimulation effectively increases the 'h' in the well (i.e. we'll go from something very small to something an order of magnitude larger), understanding the geomechanics is essential to ensure an effective stimulation but can provide a transformational increase in well productivity if performed correctly.
3. It must be a relatively large tank to warrant a stimulation - this point is really important!!!

Also, the fact that they're not isolating and moving on to the next zone is very important, again pointing to something significant. They're being patient and taking their time - difficult to do sometimes especially when your share price is tanking and you've got lots of angry shareholders (that aren't very technical) thinking they're being screwed to the wall!!

Gary Jeffrey then goes onto say that the Dempsey well "IS" a significant gas discovery (not maybe or potentially but IS). That's something new right there.

I've probably said this before but the oilfield is never straight forward and rarely as per the original plan especially when we're in exploration mode. SGC have developed a plan and they're executing it which is positive.

I am really excited about the prospects of the deeper targets but I'm afraid they will not be fully realized from Dempsey alone. What I mean is that it will take a proper field development, optimum well trajectories and completion strategies to fully realize the production potential here. What we will get here hopefully is an idea of volumes in place and potential productivity that can be achieved.

The real value in Demspey is information - along with good production at the end of the day once the well testing has been completed.

I'm still long but please DYOR

Coop

[the guardian] 08/12/2017 13:45

This is a mad price. We haven't lost the well!

Let's hope that TK has some good news in the pipeline.

[doerx2] 08/12/2017 13:40

Back to 6's soon after the brilliantly worded rns.

[the guardian] 08/12/2017 13:33

THE ART OF FREEFALL by EME

[hang ten] 08/12/2017 13:29

Toon you won't be taking money from me on this one !

GLA HT

[kevjames] 08/12/2017 13:13

Toon - Lol - I'll sign up :-)

The last time the share price was at these levels we were about to spud the Dempsey well. Since then we have drilled close to target depth, successfully wireline logged and cased the well. We have declared several (about 9) potential gas reservoir zones and we have now successfully flowed dry, pipeline quality gas from the two deepest zones and from a location that has never flowed gas before!! This is pretty good drilling and reservoir engineering in my book and you would have thought put lots on the share price.

However, the reason that this tremendous news as resulted in todays share price is probably twofold - firstly, I reckon it as cost about $5 million to get to this stage, so money will be tight. Secondly, there is no certainty that the deep zones can be made to flow commercially. Most people don't appreciate the high risks in the O and G industry - delays and cost over runs are normal.

Gary Jeffrey may have played this badly but they are sitting on a potentially transformational well. Strachan's report is actually not suggesting a duster (unlike Brimsley - but he likes his games!) but simply suggesting that more testing is required on the lower zones to prove commerciality before moving up to the the zones which are much more likely to be commercial. That is actually encouraging news, however it requires patience(which traders don't have) and funding (the unknown factor) but the returns could be well worth the extra cost and time delays. Well proven technology exists to help stimulate the lower zones. Admittedly, this low risk approach requires permissions and time/money - but the output could be very much greater than ignoring the chance to get this data.

So, what happens next, firstly all eyes on the Tulainlyo well - this should be at target depth by Christmas but more importantly hitting the gas zones soon - I wonder if they will report like SGC? I know there is no EME interest in this well but it's part of the wider play and could easily encourage additional players into the fray and they may have deep pockets.

Secondly, I think we should drill Alvares ASAP (If Tulainlyo is good)and leave Dempsey till later. Lots of strategy games here - shareholders will play second fiddle until funding, farm-ins etc are sorted. I am ready to buy lots more, the potential is huge, but I expect the traders will drive this down further!! The paper loss is a bit of a bummer but I am really hopeful for 2018. DYOR and GLA.

[thegreatgeraldo] 08/12/2017 12:48

They must see some real potential in these deep zones..... they could have opted to have plugged them off & moved up the well to test other zones & revisited the bottom 2 zones with a later well.....