 I take it any new bulls or stale bulls will have properly read and understood the interim results from EME (18/12/24), a few snippets copied here:
On August 2024 Empyrean has received a letter of demand from CNOOC alleging that Empyrean has outstanding obligations under the PSC. The Company disputes the letter and is endeavouring to settle the matter amicably under the dispute resolution clauses provided for in the PSC.
On 24 August 2024, the Company received a letter of demand from CNOOC's lawyers, King Wood & Mallesons, in relation to Block 29/11. The letter of demand alleges, inter alia, that Empyrean has outstanding obligations under the relevant Petroleum Contract entered into with CNOOC and that Empyrean has failed to pay certain amounts that CNOOC consider due and payable under the Petroleum Contract relating to the prospecting fee and exploration work. The Company rejects the outstanding amounts claimed, which total $12m, and has responded to the letter of demand requesting clarification of the basis for the demands made in the letter. At this time, it is too early for the Company to form any opinion on the merits of any demands made therein and the Company intends to continue dialogue with CNOOC and, in line with the provisions of the Petroleum Contract, to settle amicably through consultation any dispute arising in connection with the performance or interpretation of any provision of the Petroleum Contract. However, it is acknowledged that, in the event that the amounts claimed are called, further funding would be required, over and above that required to meet the day to day cash demand of the business for the foreseeable future.
However, in order to meet the repayment terms of the Convertible Note (which was renegotiated in 2023), any further commitments at the Mako Gas Field, any potential further costs of cooperation on Block 29/11, any potential amounts payable to CNOOC that may crystalise and working capital requirements the Company is required to raise further funding either through equity or the sale of assets and as at the date of this report the necessary funds are not in place.
The Company therefore requires additional funding to fund the ongoing cash needs of the business for the foreseeable future and may require further funding should it be required to settle amounts claimed by CNOOC. The Directors acknowledge that this funding is not guaranteed. These conditions indicate that there is a material uncertainty which may cast significant doubt over the Company's ability to continue as a going concern and, therefore, the Company may be unable to realise its assets and discharge its liabilities in the normal course of business.
Given the above and the Company's proven track record of raising equity funds and advanced Mako sell-down process, which the Directors believe would be sufficient to meet all possible funding needs as set out above, the Directors have therefore concluded that it is appropriate to prepare the Company's financial statements on a going concern basis and they have therefore prepared the financial statements on a going concern basis.
My Summary:
Anyone buying into EME must realise that Wilson is like a last chance saloon. They need a success or for the sale process to come to a conclusion, OR....there will be another very significant fund raising. The last fund raising was a doubling of shares.
Buyer beware. |
I take it any new bulls or stale bulls will have properly read and understood the interim results from EME (18/12/24), a few snippets copied here:
On August 2024 Empyrean has received a letter of demand from CNOOC alleging that Empyrean has outstanding obligations under the PSC. The Company disputes the letter and is endeavouring to settle the matter amicably under the dispute resolution clauses provided for in the PSC.
On 24 August 2024, the Company received a letter of demand from CNOOC's lawyers, King Wood & Mallesons, in relation to Block 29/11. The letter of demand alleges, inter alia, that Empyrean has outstanding obligations under the relevant Petroleum Contract entered into with CNOOC and that Empyrean has failed to pay certain amounts that CNOOC consider due and payable under the Petroleum Contract relating to the prospecting fee and exploration work. The Company rejects the outstanding amounts claimed, which total $12m, and has responded to the letter of demand requesting clarification of the basis for the demands made in the letter. At this time, it is too early for the Company to form any opinion on the merits of any demands made therein and the Company intends to continue dialogue with CNOOC and, in line with the provisions of the Petroleum Contract, to settle amicably through consultation any dispute arising in connection with the performance or interpretation of any provision of the Petroleum Contract. However, it is acknowledged that, in the event that the amounts claimed are called, further funding would be required, over and above that required to meet the day to day cash demand of the business for the foreseeable future.
However, in order to meet the repayment terms of the Convertible Note (which was renegotiated in 2023), any further commitments at the Mako Gas Field, any potential further costs of cooperation on Block 29/11, any potential amounts payable to CNOOC that may crystalise and working capital requirements the Company is required to raise further funding either through equity or the sale of assets and as at the date of this report the necessary funds are not in place.
The Company therefore requires additional funding to fund the ongoing cash needs of the business for the foreseeable future and may require further funding should it be required to settle amounts claimed by CNOOC. The Directors acknowledge that this funding is not guaranteed. These conditions indicate that there is a material uncertainty which may cast significant doubt over the Company's ability to continue as a going concern and, therefore, the Company may be unable to realise its assets and discharge its liabilities in the normal course of business.
Given the above and the Company's proven track record of raising equity funds and advanced Mako sell-down process, which the Directors believe would be sufficient to meet all possible funding needs as set out above, the Directors have therefore concluded that it is appropriate to prepare the Company's financial statements on a going concern basis and they have therefore prepared the financial statements on a going concern basis.
My Summary:
Anyone buying into EME must realise that Wilson is like a last chance saloon. They need a success or for the sale process to come to a conclusion, OR....there will be another very significant fund raising. The last fund raising was a doubling of shares.
Buyer beware. |
People have been saying that for five years.
That's why so much money has been lost.
Be careful. |
Even if Wilson fails, it's still undervalued with EMEs Mako when that eventually gets sold. That's why I've been adding and adding since Wilson, the upside is huge on success but still, if it fails, Mako has got to be worth 0.4/5p as a minimum after debt repaid. Heads you win, tails you win lots . |
If Wilson comes in commercial then even @ 40% of let’s say 10m boi recovery @ $50 bo all in costs…that is some £200m. Add in the mako farm down then eme currently at a 3.5m mc is probably a x 20 and maybe more. Do the numbers!. Could be really huge here if successful at Wilson. The MC of this company is totally disconnected imo and should be at around 0.25p now! and that’s with current risks & awaiting the Mako farm down. |
C.40% of issue traded yesterday. If we estimate the 10% traded today covers the short term traders chasing momentum, that would suggest we may have the 30% in stickier hands. Maybe the bottom before the more gradual rise into the drill at Wilson? Plus potential Mako details. IMHO nai |
Shame it’s not reflected in the share price today |
Another 10% of shares in issue traded today. Impressive |
Jemjem, thanks and I'll take a listen. |
Thanks Jem so must be £15m+ as minimum! |
Rough NPV of $266m over 15 years at 10% discount rate is roughly 50%. So over £100m even factoring in costs and further risk discount would expect £25-30m! |
hi showme.
Tbh, I would be happy with anything north of $20 million combined with success at Wilson.
I am aware, however, of the calculations bs-spotted has alluded to as we have swapped a couple of messages. I know those calculations are based on deductions from an interview mario traviatti gave in november, from which you can get a long way to work out the valuations conrad are considering. Worth listening to from about 5 minutes in where he talks about the sell down etc.
Imo |
Jemjem , what range do you think EMEs 8.5% is worth? |
He's chatting BS |
Eme share is Gas Sales of $266 million and only 10-15 million I disagree with your valuation |
How are you calculating $12-15 million please, bs? |
I guess cos that for the moment the current drag and tag rights are the best option for them. Even then the best they'll get is likely $12-15 million which pays off the debts, excluding the cnooc $12 million claim. will be interesting how this pans out. They desperately need wilson to come good. |
The diluted the hell for 1m pounds. Why dont they dump mako. |
Two thirds of the costs belong to corro as they have a larger share also who's to say TK hasn't got this in hand its not really that significant considering the size of Mako and the farmout is it |
If that is true - begs the question what are they going to do to meet the JVP share of costs on Duyung per Conrad notice?TK has some explaining to do here. Especially on what could put the company into default and risk of forfeiting Duyung altogether.Cash |
Agree not bye |
Maybe regain some of your losses with IQE. Great AI share. |
Mako has been going on for ages why not sell it, clearly eme cant afford it. |
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