Empyrean Energy Share Discussion Threads

[showme01] 09/4/2024 00:24

All this talk of young Tom. Is this some sort of fantasy? Jim'll fix it for you....

[odillon] 08/4/2024 19:34

TTA if your position on this share cannot be improved by a special dividend on the back of Mako proceeds then I am keeping everything crossed for you that we hear something good about the de-risking surveys soon.

I note what you say about survey and drilling timings, but we were told on 1 September 2023 that the de-risking surveys were continuing and expected to be completed in 2023 and we have not heard anything more and it is now 2024 Q2.

Let's hope that the silence is golden.

[michmcd] 08/4/2024 19:24

Can you put a net fiscal value to that PA?

[safiande] 08/4/2024 19:08

Up to 150mmscf/pd for 7 years during plateau production which is a cash cow as already mentioned.

[safiande] 08/4/2024 19:02

Assumes that EME will use all of the Mako money which is far from certain as young Tom is known to be a Mako fan.

[odillon] 08/4/2024 18:38

TTA - I am with you on selling Mako in its entirety, but the silence on the Topaz surveys is steering me to prefer a special dividend from Mako funds to shareholders rather than holding out hope on Topaz. I'm too Jaded for that.

[odillon] 08/4/2024 18:31

Some might say that all avenues lead to ruin.

If you own a house or any other property, 15% of which is mortgaged, you do not have 100% equity. You have 85%.

In the case of EME I am hoping that this 85% equity (7.225% of Mako) amounts to a very large sum of money that benefits the shareholders.

There is silence with regard to the de-risking Topaz surveys. As matters stand, the risk connected with Topaz has not been mitigated.

Shareholders cannot be expected to invest indefinitely without reward. It would be reasonable for a dividend to be paid from the Mako proceeds.

Good to see a little bump upwards in the share price today.

[safiande] 08/4/2024 16:33

Oddi, You tried to be smart by asking if EME could get the money from us. We merely pointed out that there are other avenues.
The main point is that several times you stated that EME´s equity in Mako has reduced to 7.225%.
This is not the case in the slightest. End of. Simples. Still 8.5%

[odillon] 08/4/2024 16:14

I think that the creditors would have some cares as to where the money comes from. Cash in a briefcase might not be ideal. But more importantly it is the shareholders of EME who would care where the money comes from. If it is on the basis of further loans then that just results in further equity reduction on the back of the 15% of the value of EME's stake in Mako which is the minimum that they have to pay the existing creditors.

[safiande] 08/4/2024 15:46

If EME gives up on Topaz or if CNOOC gives up on EME, then I can imagine that post first production of Mako, EME may consider a divi of sorts.
Toon may know more, but at present he is as silent as Tom is on Topaz status.

Btw. Who couldn´t use a divi right now?

[ifc2] 08/4/2024 15:35

Saf, there are more than just a few here wanting, indeed needing a divi (1.5/2p) after all these years. I imagine to sweeten the last fund raise 00.80, Tom will have had to promise the regulars Toon etc. something along these lines. I'm sure we can afford it if we find a partner for Topaz or give up on it.

[safiande] 08/4/2024 15:32

Sarcasm doesn´t really suit you does it? Of course we haven´t got that kind of money but it does indicate that the creditor doesn´t care where the money comes from. All he wants is the money. Once the GSA and the FID is in place, EME can book their share of the gas as reserves which is a potential source of funding. No loss of equity as all options remain open.

[safiande] 08/4/2024 15:12

But it doesn´t mean a reduction in equity as it is just a payment mechanism.

[odillon] 08/4/2024 14:45

Saf,

Flattery doesn't come into it.

It's clear from clauses five and six of the agreement that the payment to the creditors will always be a minimum of 15% of EME's Mako proceeds, plus the face value of the convertible note.

If EME don't pay this from Mako proceeds are you going to lend them the money?

5. On a successful sale of the Company's interest in Mako, Empyrean must redeem the face value of the Convertible Note and pay the Lender the greater of (a) US$1.5 million or (b) 15% of the proceeds such sale;

6. In the event that the Company repays the Convertible Note from sources other than a sale of its interest in Mako, Empyrean must also pay the Lender US$1.5 million on redemption of the Convertible Note together with a further payment based on either (a) the actual valuation achieved on any sale within 2 years or (b) an updated valuation of the Company's interest in Mako if not sold within that 2 year period, in each case so that the total proceeds paid to the Lender are 15% of the valuation of the Company's interest in Mako;

[safiande] 08/4/2024 12:54

If there are a few here who expect a divi from a portion of any Mako sale then they may feel let down. Although young Tom has a zillion shares he is not known to favour a cash distribution this time and would prefer to allocate the proceeds to new projects which is why he is in business after all, more so if Topaz is a gonna. If Toon is currently out to pasture then shareholders may need a new focal point to oppose the wishes of the CEO if the above is so.

[showme01] 08/4/2024 12:40

Who is the 'we' you refer to? You and Gaz Gas Clouds?

[safiande] 08/4/2024 12:37

Rather unflattering reply from oddi on Sat which is disappointing considering how much we helped him on the DMO where he also failed to grasp the fundamentals.
Until any Mako sale is implemented, then it is not known whether the either / or in para 5 applies. If the latter namely 15% of the proceeds, then this is merely a method of calculating the repayment. It certainly does not mean a reduction in equity as claimed. Personally we would be horrified if EME had to sell valuable Mako equity to cover a puny loan. Furthermore the loan provisions make it clear that EME can pay off the debt from sources other than a sale. So clearly there will be no equity reduction.