Empyrean Energy Share Discussion Threads

[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.

[odillon] 07/4/2024 14:08

indeed, it is so frustrating that I cannot even spell Topaz

[odillon] 07/4/2024 14:08

As we stand, the risk associated with Tpoaz has not been addressed.

[odillon] 07/4/2024 14:05

This is what we were told on 1 September last year. Without any concrete news of the surveys since then, my inclination is that we should sell up the Duyung gas and pay out net benefits to the shareholders.

"Following the disappointing result at Jade earlier in reporting year, Empyrean's post well analysis has been able to combine our excellent quality 3D seismic data with the confirmed well data from Jade to improve the validity of the Topaz prospect as a robust and large drilling target of approximately 891 million barrels in place (P10). Based on this work, in June 2022 Empyrean made the decision to enter into an agreement for the second phase of exploration on Block 29/11 with the aim to drill Topaz before June 2024.



Empyrean now intends to conduct two further key projects that capitalise on the excellent quality 3D seismic acquired by the Company over the permit, shared regional 3D seismic that CNOOC has and additional physical well data of both Empyrean and CNOOC. These projects, consisting of a regional oil migration study and a simultaneous 3D seismic inversion project, are designed to help address and mitigate the remaining primary geological risk at Topaz, being oil migration into the Topaz trap."

[showme01] 07/4/2024 12:57

In fairness JJ, the funders held all the cards and it could have been worse imo.

The big one for me is to see if TK and GB can negotiate and extension for Topaz ideally with a free carry JV but Topaz is where the share price will rally pre drill.

More knowledgeable people on here seem to be suggesting Duyung is worth at least 2p. Pre drill on Topaz would see several multiples of that if pre drill Jade is an indicator.

[showme01] 06/4/2024 08:58

How thick can someone be. How difficult is this to understand?

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;

EME's current net position is 8,5% less 15% of the sale and the face value of the loan note.

[odillon] 06/4/2024 02:48

Saf

You've reminded me of a scene from the Shawshank Redemption

Andy 'how could you be so obtuse?'

Warden Norton 'what did you call me?'

Andy 'obtuse, is it deliberate?'

[safiande] 06/4/2024 00:12

Thanks for finally accepting the obvious. It is frustrating that it took so long to get there, as the fact remains as stated several times in our posts that EME´s equity is still 8.5% and not your lower figure, pending execution and formal implementation of any revised final arrangement as agreed by all parties such as MOMR, MIGAS, CRD & Coro and also notified to ASX, LSE etc.
Phew!

[odillon] 05/4/2024 21:51

Thank you Showme for setting out the provisions.

Saf is right that agreements can change over time, but if there is any alteration from this point I very much doubt it is something which will be a detriment to the creditors. More likely it will be more money for the creditors and less for the EME shareholders. So sell up soon, settle debts and then give some good money to the EME shareholders.