Empyrean Energy Share Discussion Threads

[blueblood] 20/11/2017 09:46

Could be they have found something of interest in next zone and are flowing it for extended 48-72 hour period before reporting. At least the share price will have lots of headroom to rerate once commercial flow is confirmed. The current asset value for Dempsey is not much more than the shallow zones that have already been declared commercial and will recover well costs. Anything else is a bonus and 1TCF is still up for grabs as we test X3/X4

[michmcd] 20/11/2017 09:17

Well I hope I don't regret this but that 65k showing as a sell was my buy. Good results at Sac and news on Indo and China and that could 4 bag in no time at all ..... I hope .... :-)

[kevjames] 20/11/2017 09:06

Stewart

A few sellers on low volume and MM's will always mark down to try and maintain a balanced book. Positive sentiment is gone at the moment and I would say that we are close to a valuation that assumes Dempsey is now a failure. The question is why (on the current information we have) would a declaration of non commercial flow from a thin and poor reservoir create that opinion!! There are many more zones to test - the lack of news may simply be that they want to get this right, so they need to be very pedantic in the preparations.

[swampydrill] 20/11/2017 09:05

You can't work just 12 hrs a day and 5 days a week when you flow test a well, it needs to be a continuous clean up / test.

[bskiny1] 20/11/2017 09:01

I think only working 5 days and day time slows things...but a week to set up and set of perforation charges seem long...on a positive note it could be 3 days and then 2 days flow testing...GLA

[ayesha4] 20/11/2017 08:58

Those not buying at 16p will regret in a big way. Watch some of the short positions unwind later this afternoon.

[stewart4800] 20/11/2017 08:45

The announcement last Monday by Sagasco has really hammered eme, quite inept that announcement very naïve, anyway eme's market cap is down in a week by 30% and it looks like the market has priced in failure at Dempsey.

I am still bullish but like many others wished I had sold a few hundred K at 22p, well it is eme and after 10 years I should no, still I remain optimistic of success even though people are selling, they seem to have forgotten Indonesia and China and indeed Dempsey, on trend and Alvaras

[esmerelda] 20/11/2017 08:43

Can we read anything into the fact that it is taking sometime to hear about testing of the next zone? Might that suggest a prolonged flow test is taking place rather than what we saw with the first one.

[kevjames] 20/11/2017 08:30

Jemjem

Indeed, waiting for news.

For those with an interest in the completion of wells and "perforating" the article linked below is an interesting guide and gives an understanding of why this takes a while to get right. The summary at the end includes the paragraph quoted below and suggests that things have improved somewhat over recent years.

"The challenge facing completion engineers is to find ways to control the power of their perforating techniques so that they combine maximum reservoir penetration with the creation of clean and effective perforations.
Perforation technology and methods have changed dramatically over the past 20 years. In comparison with the 1980s, there are now many more perforating systems and methods for conveyance."

[jemjem] 20/11/2017 07:40

All quiet on the SGC front. Up a bit on the day with low volume - waiting patiently for news.
Let's see if EME holders can do the same...

[starzerus] 19/11/2017 23:58

from agentm on xst hotcopper

Once flow‐testing of the Demspey 1‐15 well has been completed the JV will turn its attention to evaluating the 1,500m of gas shows encountered in the Alvares ‐1 well gas discovery.

Xstate holds a 21% working interest in the Alvares Gas project which the operator estimates to contain a total (100%) recoverable unrisked prospective gas resource on a best estimate deterministic basis of approximately 2.4 Tcf1. (400 million barrels of equivalent oil “mmboe”).

The Alvares Conventional Gas Prospect is an appraisal project testing the Alvares‐1 gas discovery drilled in 1982 on a large structure mapped on 2D seismic.

The Alvares Joint Venture is currently evaluating how best to test strong gas shows recorded over more than 1,500 metres below a thick, sealing shale at 2,350 metres. Wireline log data from the Alvares‐1 well indicates several zones with conventional gas reservoir potential.

Alvares lies on trend with the Tulainyo well drilled in 2015 which is located south of Alvares. The operator of the Tulianyo well reported “drilling in 2015 to test a 50 square mile (130 square kilometre) four way closure that was mapped on proprietary 2D seismic data”. It was reported that “this conventional exploration well encountered multiple stacked gas bearing reservoirs” at depths of less than 1,800 metres.

It has recently been reported by Pancontinental Oil and Gas NL (ASX: PCL) that the Tulainyo 2‐7 appraisal well is being spudded at the end of October 20172. The Tulainyo 2‐7 well will appraise a potentially giant‐scale, overpressured gas discovery in similar age rocks to those about to be tested in the Dempsey‐1 well and the previous Tulainyo well.

Xstate is also highly encouraged by the appraisal drilling of the Tulainyo gas discovery which has direct implications for Alvares. As announced by the Operator of the Alvares Gas appraisal project a potential re‐entry of the Alvares‐1 well and/or a new re drill well to production flow test the Alvares‐1 gas discovery3 is planned. Xstate has retained a 21% working interest in the Alvares Gas Appraisal project.

The well bore of Alvares 1 will be assessed for its suitability for re entry and the drilling a side‐track as a cost effective way of evaluating the potential of extensive high pressure gas shows encountered in the discovery well while drilling for oil in 1982. The upper 500 metre thick interval of the best gas shows were not previously evaluated due to logging difficulties related to high pressure gas influx.

[rutter] 19/11/2017 20:26

May get a clue in the trading if no RNS

[farhan3000] 19/11/2017 20:10

How we feeling about EME and dempsey?

[bishopawn] 19/11/2017 19:10

World Class Resource on the cards and a Company Maker is our Dempsey. News this week for sure. Pressures strong enough to blow our socks off!.

[jemjem] 19/11/2017 18:59

There's certainly a chance of news tonight. Everyone in Oz was tucked up bed on Friday night before the shift even started in California in the morning. If there was anything significant from Friday, it will be reported on Monday - Oz time.

[bskiny1] 19/11/2017 18:57

It seems to be taking at least a week per zone...7-8 zones still to do...could be into next year...

[honestmarty] 19/11/2017 18:49

Always possible,

I don’t think I can endure another poor RNS.

I might just not look for a couple of weeks

[niceyman1] 19/11/2017 18:40

Any chance of news tonight?

[blueblood] 19/11/2017 18:38

Thanks a lot Kev lets hope we get great news from Dempsey soon and follow up with Alvares.

[blueblood] 19/11/2017 12:35

Anyone know what formation is at Alvares and depth? Does it correlate to anything at Dempsey G1?

[harrissen] 19/11/2017 12:33

Rutter, the perforations may be miles underground but the controls for the machinery carrying out the perforations are at the wellhead on board the rig. It seems to me it is a bit like micro-surgery and requires a steady hand to manage the controls. They do not work shifts as this would require different teams taking over the operation and mistakes could be made, hence the one shift daylight hours 9-5 work pattern imo.

[rutter] 19/11/2017 11:30

So, as a non oily, and having no idea about the O & G industry, I have now learned that crews work only week days....and only in daylight hours despite the work being carried out miles underground :-) Maybe from 9-5 with 1/2 hour morning and afternoon tea breaks and say 1 hour for lunch. Perhaps they spend the week ends having their toes and nails manicured after a visit to the hairdresser. And I had imagined them as roughy toughy blokes. Hence RNS Tuesday.....that is if they don't throw a "sicky" on Monday. GLA :-)