Empyrean Energy Share Discussion Threads

[the guardian] 30/10/2017 08:31

Ciminna, never apply logic to the stock market.

[ciminna] 30/10/2017 08:21

New to all this but how can Sgc be up eme down?

[honestmarty] 30/10/2017 08:04

Traders and MMs battling it out here.

No chance of news today so sell in the morning, buy back cheaper later.

Yawn

[abergele] 30/10/2017 08:04

I see the nervous brigade are up early this morning again....

[harrissen] 30/10/2017 07:49

seagreen
29 Oct '17 - 20:50 - 11528 of 11536 0 0

Harrissen I believe you have received the odd comment from me which was unfair but I could not see where you were going with your posts then, I apologise and may I thank you also for your excellent comments re our sudden shorter. Much appreciated you taking the time.

..................

Not to worry seagreen, I just post as I see it. I am sure most serious investors would recognise that they have come across a 'brimsley' at some time or other on all bb boards. Their MO is always the same - try to turn positive in to negative for reasons only they understand.

[doc robinson] 30/10/2017 07:20

Sgc up nearly 9%

[bobby1904] 30/10/2017 07:15

Exciting week ahead!!

[starzerus] 30/10/2017 06:05

Looks like testing has started, according to HC

[control1] 29/10/2017 23:35

No, or at least, not yet...

[niceyman1] 29/10/2017 22:42

News tonight?

[lazarus2010] 29/10/2017 22:28

As Peter Strachan from StockAnalysis highlights below, Dempsey could be a company maker worth up to 86 cents per share for SGC.

ASX SGC share price

Given this backdrop and the fact that the company is already generating cash flow from production as indicated below, it is difficult to understand the disconnect between the company’s recent trading range of circa 9 cents and Strachan’s target price of 25 cents.

It is worth noting that this is a risked valuation which only attributes a value of 14.8 cents per share to the Dempsey Field, which under his assessment based on upcoming exploration results could draw a valuation of more than $500 million with $262 million attributable to SGC.
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Risked valuation on August 1st would clearly have been based on a CoS factor x gross unrisked valuation. Now that the well has been completed, and gas shows have occurred, the CoS is much greater (from around 20% to maybe 50%+??)

So instead of c. A$15cps, it could be A$43cps now, however neither of these pre-production valuations count for much in as much as if there's no gas the value is zero, if there is the top estimate of 1tcf then the valuation would be A$168cps.

The proof of the pudding will be in the eating, so all discussions of valuations, whatever the report, are purely hypothetical. What will be important is the cost of commercialisation vs revenue, as we have seen in previous EME producing wells which were marginally profitable or even uneconomic due to low oil prices.

If this first well can produce in excess of $1.5mmscfgd then they need additional pipeline capacity. If a single well can only produce say $1mmscfgpd (hypothetically speaking of course as I would expect this wellhead equipment to have a much higher capacity), then they need additional wells.

At the moment those invested believe the well will be a success and the production will be very profitable and the sp's of all the companies will rise substantially, and vice versa for the bears...only time will tell, sit back and relax if possible and que sera sera.

AIMVHO dyor etc

[bluehooperman] 29/10/2017 21:44

News could be 10.30pmMarkets open 11pm ukSydney 11 hours ahead of uk

[s0n1cb00mb0y] 29/10/2017 21:32

With the clock change what time is the box market open, our time tonight? Cheers.

[seagreen] 29/10/2017 20:50

Harrissen I believe you have received the odd comment from me which was unfair but I could not see where you were going with your posts then, I apologise and may I thank you also for your excellent comments re our sudden shorter. Much appreciated you taking the time.

[telbap] 29/10/2017 20:47

Exciting week ahead, one which will i hope see the share price at least 2 or 3 times today's share price Once the gas is pumping and the news flow starts on our next drill we can hope for 3 figures.So much depends on the flow tests currently running......

[starzerus] 29/10/2017 20:02

I just copied that post over from hotcopper

[d1nga] 29/10/2017 19:45

Its 20mmscfd , folk often don't know how to express it when writing it out

[lelo9] 29/10/2017 18:53

starzerus - 'the pipeline metering maxs out at 20,000 cuft per day.' From Steve Larratt's report, earlier - 'The meter station has a 20 million cubic feet per day flow rate capacity.' So, is it 20000 or 20000000 cf/d ? I certainly anticipate more than 6000 cf/d.......

[peterpowell21] 29/10/2017 16:23

Broker reports, does anyone really believe what they say or the price they put on them.
I don't think i have ever seen one that got it right ever.
The only thing that matters is the flow rates.
That is what will determine what there and were the share price will end up.
Not long to wait now.

[starzerus] 29/10/2017 11:06

From gdreams on hotcopper

This report is quite consistent with what is unfolding. They have the dilution pretty accurate and the valuation based on an uncertain outcome. The outcome is somewhat more certain now and will be much more certain after flow testing. They based the valuation on around 150 bcft which I think is probably the base case outlook now. On this case once the resource is confirmed then a valuation around 24c would be justified. If the resource is 500 bcft then a valuation around 75 to 90 cents would be justified. Alvarez then becomes a wildcard and is probably worth 8 to 9c at this stage and potentially another 75 to 90 c with a good result but realistically not before mid of next year.

The report was based on Dempsey feeding in 6000 cuft per day to the pipeline. It will be interesting to see what the actual number will be given the pipeline metering maxs out at 20,000 cuft per day. Close to or more than the max would be a big bonus for cash flow and the economics of the field.

[dancingbear] 29/10/2017 10:39

It would be good to get an idea on what happened at the workover well they managed on the way. With several of these types of well in the joint interest and a successful workover I would have thought an RNS to note any change in flow rate would be news worthy. If nothing else it would add to positive newsflow and investor interest.

It would be interesting to know what would happen if these were drilled deeper. Are they on top of a leaky pile with deeper larger producing structures as yet untapped, are they analogues in the geological structures that may further knowledge etc? Perhaps something for the future?

[buffythebuffoon] 29/10/2017 10:28

Sounds like he’s a passenger, rather than the captain.

Buffy

[harrissen] 29/10/2017 09:37

Make sure you steer clear of Barcelona all hell is breaking loose there

[rutter] 29/10/2017 09:32

Cruising out of Malaga later today, but will( hopefully) have internet access in various med ports. Could be the most exciting of weeks for EME holders. I'm a 3/12 newby, but you long termers deserve rewards for your patience. GLA