Empyrean Energy Share Discussion Threads

[grannyboy] 13/6/2022 15:28

Laz .. You or I do not know if they will sell the asset, but if the sale price is a decent sum, with the present and some future valuation included then it is sensible to sell the asset for a lump sum, who knows what can happen in the future..

[lazarus2010] 13/6/2022 15:05

g-boy, tf you're not the CEO! The worst thing we could do is sell the whole of Duyung (and yes TK might be forced to do just that, but it's not the best thing to do!) We might get 10-20% of full value of the asset with an early sale, and if Topaz is a duster then we've sold off the silver for a pile of plastic cutlery!

Selling a part of Duyung to put us in a better financial position might be the prudent thing to do, but we should imho keep some of it for the future.

[grannyboy] 13/6/2022 12:46

Ffs, jemjem gets 13(so far) tick ups for a wistful, self-indulgent prophecy speculation..

No one knows what will eventually materializes , not even TK at the moment, events could change anytime.. The Duyung GSA could come in different forms, the best in my opinion would be an outright sale, but it just depends on what deal Conrad achieve ..

[jemjem] 13/6/2022 11:22

That's a lot of "noughts" you're throwing around there helpless. You won't be surprised to know that I don't think there is any chance at all of a confetti placing as you suggest.
I think that even you would agree that at some point, our 8.5% of Mako is going to be worth a substantial amount - particularly when compared to our current market cap.
In the unlikely event there is no GSA by 31st July, we will need to pay the CLN holders £2.67m - probably within a short time frame. Personally, I don't think it will come to that, but let's play your game and throw a few more "noughts" around.

Let's assume that each one percent of out holding is worth £4,000,000. A not unreasonable starting point. For the sake of argument that is $5,000,000. That gives a total value in the region of $42,000,000. Personally, I think we may get nearer £5,000,000 per one percent - which would give us nearer $50,000,000 - but let's stick to $42,000,000
I know of one, and probably two, parties who would be willing to entertain buying some of our percentage - albeit at a significant discount to the eventual worth. Let's assume that discount is at 25% of the above valuation (£1,000,000 per one percent) and we sell 2.5% to pay the CLN holders - leaving us with 6% - worth $35,000,000. That removes the CLN overhang and provides all the funding needed for Topaz - with or without a farm out.

Not an ideal route to be forced down. Not one I think we will have to go down. But heaps better than your scaremonger story.
Imo

[judijudi] 13/6/2022 10:51

helpful is actually is correct
imho

[sue999] 13/6/2022 10:36

jon, Helpful, needs help to bring the price down so could close the shorts and make money. Last week the short traders lost so this week they must cover their losses.

[jon12345] 13/6/2022 10:18

what exactly do you want for all your words of wisdom, a medal, a hand job?

[helpfull] 13/6/2022 09:27

There is a blueprint for Topaz.

It is written in Jade and plain as day.

The only difference is that 31 July 2022 looms large. And the seven amendments.

For the Jade drill £5.02 million was raised on 9 July 2021:

"primarily be used to secure a suitable drilling rig and order long lead items and for the Company's general working capital requirements as it prepares to drill"

The company will need to raise cash for the same purposes for Topaz.

Eme awarded the drilling contract for Jade on 2 September 2021 . $12.3 million (about £9.8 million).
The drilling contract was executed on 11 November 2021 and the 10% deposit paid ($1.98 million including mobilisation costs).

Eme raised £7.623 million on 16 December 2021 to pay for the Jade drill. The company will need to raise similarly for Topaz.

Here's the problem. Jade was a duster. The share price has fallen drastically. To raise £5.02 million at 1.4p would mean 358,000,000 new shares. There is a problem with the note debt and when/if any GSA appears before 31 July 2022. Either way it might be difficult to raise cash. And expensive. Eme does not have enough cash to pay the $250,000 initiation fee to CNOOC for Topaz and the $1.98 million deposit. It must raise cash. If the GSA doesn't arrive on time the CLN notes are secured against Duyung. Eme needs to pay off the £2.7 million loan notes. And it needs to raise cash for the drill. All in that could be 1,100,000,000 new shares at 1.4p. At 1p, it could be 1,500,000,000 new shares. There is great risk .

Of course some will cry Mako and GSA but that may not arrive in time. And there is a chance of a "farming" partner. But a partner never arrived for Jade.

There is so much uncertainty at present. Yet shareholders continue to bury their heads in the sand. Potential shareholders might need to think twice. Things could get messy.

Be careful.

[stewart4990] 13/6/2022 09:17

Regarding Gaz our geologist it would be good to hear his opinion as to why he was so sure of Jade instead of Topaz. Also he was awarded shares was it 70 M then was it 30M were then put in another company, has he actually bought any it would give some confidence if he did, Tom has bought in the market.

[linz22] 13/6/2022 07:38

Shot, impeached or cancelled..

[diarybeach] 13/6/2022 07:11

I was also in California recently and the Left has largely ruined it. Soaring crime and druggies stinking up most large cities. They’re starting to shuffle their feet now and admit they were wrong but we see these looney left- wing policies everywhere. Bunch of well-intentioned idiots who seldom learn.

Biden is even worse than Trump which is saying something. He’s a career politician who’s protected by the mainstream media, has never worked in the private sector and to top it all is suffering from early stage dementia. You couldn’t make this sh1t up!

Where have all the quality Presidents gone?

[the donald] 13/6/2022 02:58

In California atm. Driven past plenty of producing assets, on land and at sea. No sign of any green energy, just plenty of homeless and teens/adults on cannabis now it's legal. Crazy imo

[digger2779] 13/6/2022 01:45

blueblood - I think Biden has destroyed the USA O&G industry. He's hell bent on this Green Deal and has been shutting down O&G from his 1st day in office.

[blueblood] 13/6/2022 00:13

Our our California assets worth nothing even in this new commodity bull environment? You would have thought they must be worth something with gas going nuts!

[mhfrancis] 12/6/2022 20:06

CROSSEYED thanks for sharing your positive views it will help nerveous shareholders to stay on board or maybe top up at low low prices i am waiting for 413p and the BB full of praise for management GLA DYOR my glass is all ways half full nearly forgot where did all the oil go from jade

[grannyboy] 12/6/2022 19:43

Well personally I would have asked a 'shell shocked' Kelly who he thought was responsible for the leak over 24 hours before the duster RNS, because there wasn't that many people in the UK who would have been anywhere near the SCS, can't see it been the Chinese drill workers.. It stank then and it still stinks!! There's quite a few 'mysteries ' involved with this company.. Strange how $2mil went walkies into another account, why the drill was ten days earlier then predicted, by a drilling company that has many drills wells experience in the area!!!

[lowsulpher1] 12/6/2022 19:01

Welcome back Crosseyed a very good post.

[blakieboy7] 12/6/2022 16:17

Good to see you posting Crosseyed!!

[crosseyed] 12/6/2022 15:56

I am very disappointed by the frequent negative comments about EME's prospects regarding Block 29/11 in the South China Sea, in particular from posters who have shared this EME thread over many years, parhaps back to 2006 or thereabouts. I'm not talking about the many short-term, and some well-known longer term, influencers/manipulators. They are easy to ignore and almost eliminate using the filter button, though that action is, and should be, an individual choice.

Although nominally the moderator of this thread, I don't post very often largely because there is not much to contribute over longish intervals of time, though I always keep up with posts. I believe that we are now entering a potentially existential period that could nevertheless provide very substantial rewards.

I have kept up the Volumes and Valuations table in the header in the CHINA section, but allow me to explaina its logic. The figures are drawn from the commissioned Gaffney, Cline & Associates assessment originating in Nov 2018 with minor subsequent amendments giving the P90/P50/P10/Mean reservoir volume estimates in mmbbls along with their geological Chance of success (GCoS) for each of the three prospects Jade, Topaz and Pearl, although of course Jade turned out to be dry. The post-mortem study of the Jade results made with CNOOC suggest that the estimated reservoir volumes for Topaz (and Pearl) remain essentially intact, with strong hints of possibly even better figures.

I have also included successive projections of valuations to EME shareholders building incrementally on checkpoints in the assessment process. These are scaled on Cenkos valuations for Jade made in April 2022. They are made respectively for the P10 and Mean estimates drawn from Gaffney,Cline figures. The thinking seems to be that if the resevoir is filled, then it is likely to attain the higher P10 estimate given the porosity of the rock formations and the hydrocarbon characteristics seen in nearby producing wells.

Pre-Drill: Risked estimates as of now with the assumed GCos.
Post-test: Risked estimates that supersede the former following proven oil-in-place.
Pre-production: Estimates when the well(s) are ready to produce.

These are not market prices, but perhaps represent a fair valuation of the assets at each stage.
Nevertheless, the P10 case just for Topaz atarting at 45p/share with a 32% GCos, rising to 413p/share as the potential reward, from a starting point now of about 1.4p/share, seems like a very juicy incentive to me. There will be many here with average investment in the single pence range.

Perhaps I am being too starry-eyed! Of course, DYOR.

c

[bushman11] 11/6/2022 12:56

Apart from latest RNS re Topaz. Perhaps - buy now sell on any bounce pre spud if not wishing to hold further . The RNS has already appeared in Offshore Energy, Rigzone, Shares Magazine, Morningstar and Oil & Gas Journal. As with Jade , excitement will mount nearer to any spud. Topaz a much larger prospect than Jade - look at how much publicity / coverage that was given. Please DYOR.

[diarybeach] 11/6/2022 11:30

Regarding the stolen $2m, Lawyers no doubt racking up fees on pointless recovery action with Tom Kelly only too happy to indulge them as it delays the inevitable ‘write off’ RNS at a time when negative news is coming thick and fast.

[begorrah88] 10/6/2022 21:50

Why?They can let EME take all the risk & step in if it is a goer. Same as their prudence proved with Jade.They have no need whatsoever to risk a bean.