Empyrean Energy Share Discussion Threads

[helpfull] 12/1/2022 09:57

Tickety Tock! Strange things predictions. They are so unpredictable.

Wasn't Duyung supposed sold by now? After the GSA's were announced? Wasn't the cost of the Jade drill supposed to be met by a loan on the back of the Duyung asset so no share dilution was needed? Wasn't the cost of the Jade drill to be met by the exercise of 12p warrants as the share price moved upwards pre-drill? Aren't the costs of the testing to be met by the exercise of warrants at 18p and 24p as the share price rises after Jade success? Wasn't the Jade well supposed to be spudded mid-December? Or on my beloved Christmas day? Or last week? Maybe two weeks time? Perhaps it has already been drilled and shareholders can look forward to heavenly rewards?

Only idiots make predictions. Here is mine. The share price will be a lot higher and a lot lower than it is today before the result of the Jade drill is known.

Be careful.

[michmcd] 12/1/2022 09:50

upwego, confirming oil at fill to spill at Jade would typically be worth upwards of $5 per barrel. Not only that, but it significantly de-risks topaz too.
Jade circa 49% is 195bs - so value of $1b in the ground.
Surely it also means Topaz pre drilling has a value of $1 to $3 in the ground.

Huge potential here with a successful drill.

[bluehooperman] 12/1/2022 09:12

Welcome upwego I would expect the well to be spudded early February if the site survey gets done in the next weekPrice wise, who knows, hopefully when drilling starts, could be 10p. If we hit oil, the skies the limit!!!Aimho :-))

[upwego] 12/1/2022 09:06

If the Jade prospect hit the estimated target of liquids what could we expect the share price to move to?

I`m new and just trying to get a little more information?

TIA

[upwego] 12/1/2022 09:03

Any rough idea when this well will be spudded?

TIA

[buzzzzzzzz] 12/1/2022 08:55

Laz

Yes my bad, it's the other way round.

I have corrected my post with the relevant para from the RNS.

[lazarus2010] 12/1/2022 08:52

Buzzzzz...not read it in detail, but wouldn't the option be the other way around ie we need to pay them back in cash BUT they have the option to take shares at 8p...and if the share price is above 8p then they make a Brucey Bonus on top of the option for interest and capital repayment.

Edit...exactly!

[lazarus2010] 12/1/2022 08:50

smacker...what if the share price is below 8p?

[buzzzzzzzz] 12/1/2022 08:49

Smackerain

I think there is an option to pay back in cash.

Otherwise why would Duyung be held as collateral?

""In conjunction with the Placing, the Company has entered into a Convertible Loan Note Agreement with a Melbourne-based investment fund (the "Lender"), pursuant to which the Company has issued a convertible loan note to the Lender and has received gross proceeds of GBP4.0 million (the "Convertible Note"). The Convertible Note has a maturity date of 16 December 2022 and the Lender can elect to convert all or part of the principal amount of the Convertible Note into fully paid ordinary shares in the Company at any time prior to maturity at a conversion price of 8.0p per share. The Convertible Note bears interest at a rate of 10% per annum and is secured by a senior first ranking charge over the Company, including it's 8.5% interest in the Duyung PSC and Mako Gas Field.""

So has to be paid back by 16th Dec with interest or lender can elect to take shares!!

[lazarus2010] 12/1/2022 08:48

caaalm down caaalm down guys, let's keep it friendly ;-)

nametrade...not sure which post you're referring to, but no, not t-i-c at all.

[smackeraim] 12/1/2022 08:47

What loan payback? It's a convertible. It gets paid back in shares at 8p.

[linz22] 12/1/2022 08:40

I think, maybe, it was just a bit tongue in cheek..?

[birotop] 12/1/2022 08:34

Lol….😝

[buzzzzzzzz] 12/1/2022 08:33

Lowsulpher

You want to say that to my face?

It can be arranged!

[judijudi] 12/1/2022 08:06

Anyway it’s not going to be a duster is it 🤷‍a94;️🤞🤞

[nametrade] 12/1/2022 08:03

laz,

Was that tongue in cheek as well?

just checking....

[lazarus2010] 12/1/2022 07:59

Judi, the loan isn't = to the value of Duyung at say $30mln, $40mln...therefore ALL of Duyung would not need to be sold, also if Duyung is proven to be worth say 10pps to EME before even being developed then one might expect the share price to rise a bit and Tom could then raise some cash and pay off the loan.

He could also raise another loan for Topaz to pay off the existing loan, using the enhanced valuation of Duyung as collateral...there are lots of permutations available imho

[petercrosby] 12/1/2022 07:53

Remember if all 12p warrants are converted then there is enough there for testing.

[judijudi] 12/1/2022 07:45

Laz,
If we don’t find oil at Jade Duyung will have to be sold to pay back the loan we have taken out to drill Jade

[lazarus2010] 12/1/2022 07:27

ls1...no need for such language ;-)

The long term financial returns from Duyung tell us that it won't be sold...in a hurry.

The fact that Tom has raised the cash for the drill tells us it doesn't need to be sold.

If Jade well hits oil, the share price will rise (we all expect/hope!) and almost certainly the $7m to test can then be raised from a much higher share price with less dilution than if he had tried to raise it at 6p

Duyung could be sold if Jade fails to produce commercial quantities of oil and we need the cash to drill Topaz (but on the other hand Duyung could still be a very valuable asset to keep as by then we should have a GSA and an estimate of the potential valuation of our 8.5% and also more information on the potentially increased size of the field)

Clearly nobody knows if/when it will be sold but the odds are at the moment that there is no need to sell it and therefore it won't be sold.

aimho dyofr gla

[abergele] 11/1/2022 19:48

Putting a ruler across the bottom of last drop and aligning it to a bottom at April 2020 sees other points of direction change,,,so perhaps we have now changed our direction to further highs again..
A slow climb now maybe pos...aimo,,gl.all Lth's