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HEP Hephaestus

2.875
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Hephaestus LSE:HEP London Ordinary Share GB0007614935 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 2.875 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Hephaestus Share Discussion Threads

Showing 176 to 198 of 400 messages
Chat Pages: 16  15  14  13  12  11  10  9  8  7  6  5  Older
DateSubjectAuthorDiscuss
12/10/2006
14:28
I presume the common directorship is how European Gas got involved in the projects in the first place, though that is long before I'd even heard of either company.
I really must be missing something - it can't be a jobs for the boys issue since Messrs Ray & Scarlett own 20% of HEP between them. So why on earth have they accepted such a reduction in HEP's interest?

rapier686
12/10/2006
14:04
Yup, you'll remember AJF from the AGM.
buffin
12/10/2006
13:29
From European Gas website - Mr. Alan J Flavelle BSc FAIMM MAIG, MSPE
Executive Director
Geophysicist with over 40 years experience in the minerals, oil exploration and production industries. Knowledge and experience covers both international and domestic projects from grass roots to full production projects.

From HEP profile on PLus - Directors
Chief Exec Officer
P A Ray
Finance Director
R W Scarlett
Non Executive Dir
A J Flavelle

wassapper
12/10/2006
11:59
Were being robbed I know that much. Not so sure of this 'same team and jobs for the boys' but I expected a lot more, a lot lot more than Im going to get from this present offer.
hedgehunter
11/10/2006
22:02
"Why would the HEP directors sell us out so cheaply when we are on the verge of great times?"

Because they are all part of the same team - I went to the AGM and they spoke for each other. It is a fix and I will be speaking to City Natural and GOL.

wassapper
11/10/2006
21:42
I don't give a monkeys if EPG open up on the news. I'm not a seller (except well, well north of here) till the play does or dies, so I don't value the bid in pence but in proportionate share of the project. And, though I recognise a certain inevitability of merging to neaten up the situation, I will miss the business asset CGT shelter.

Directors have 20%, City Natural Res have 16%, Rand Investments have 12.7% - if we were to kick up a stink, how much do we have round these parts?

Personally I'm a tad shy of 1% at 500k shares.

Fellow potential activists can contact me by "Post Reply" ticking "Reply to Author" instead of "Post to boards" to the following TMF post

rapier686
11/10/2006
21:36
With EPG out-pacing HEP in the share price stakes recently (partly or even mainly due to our being quoted on OFEX and little covered), I've been contemplating whehter I should be holding EPG rather than HEP. This seems like a decent deal to me, as it would gain me a few pence per HEP share and then "do the transfer" for me? Of course, my HEP targets were much higher than the current SP, due no reason why they can't be realised as part of a larger, more liquid and noticed group.
sranmal
11/10/2006
21:22
HEP seems to be Madge to the Dame Edna that is EPG!

Life is never fair to the ugly bird (Janet Street Porter excepted!)

Fredling,

fredling
11/10/2006
21:20
It might not be a 'given' this.

The Directors have agreed to the bid but they hold c20% and if GOL's 15% were to be against it, then it becomes very interesting, though there is a 'sweetener' for their out of the money warrants. Small shareholders just this once might actually end up with an important say.

There's further confusion with a 250k protection for EPG should their 'exclusive' bid be trumped., which HEP would have to pay (though I suspect an alternative bidder would stump that up!). And the directors are 'released' if a rival bid emerged more than 10% above the offer price.

EPG have been defensive about another bid, there are enough mining investment companies in the UK to think something of this size just might be attractive.

My gut reaction is that I think this is an undervaluation given the sheer size of the discovery and looking at the companies' relative valuations, though to be fair more number crunching would be needed to confirm it..

egoi
11/10/2006
20:33
It depends on who we tell, however since EGP will have to anounce this on the OZ market everybody will know. Lets see what happens you never know. My Valuation is as follows 132 Mill EPG Cap at .80 - 14 Million = 118 Million

Take 1/3 of this = 39.5 Million AUD divide by nos Heriatge shares gives .74 Ratio not .55 ie 1 million shares gives you 740K shares not 550,000

lmhardy01
11/10/2006
20:21
Does anybody think there is a possibility of another bidder for HEP entering the fray thus upsetting the cosy little relationship between HEP and EPG? After all the potential of all this gas being present might make HEP a tasty little morsel for a small to middling size oil company who want exposure to it? Companies like AST or SEY could be interested? Or am I talking utter rubbish? After all if EPG thought somebody else might be sniffing around HEP then it could have made them bid now.
papillon
11/10/2006
20:05
I suppose there is the possibility, seeing that the merger terms seem so advantageous to EPG, that EPG will jump up in price tomorrow thus "improving" the offer to HEP holders.
papillon
11/10/2006
19:52
I suppose that the merger was inevitable, but like others on here I am disappointed with the offer. Why would the HEP directors sell us out so cheaply when we are on the verge of great times?
Ho humm. With little alternative, I'll take the EPG shares and stay with the play when they float on AIM - as they surely must. We might still make our packet out of this.

lord gnome
11/10/2006
19:50
Guys the most telling thing about this is the fact that ambrian partners are listed as promoters on the bottom of this offer! The faxt that they talk about Warrants which were only issued in the last capital raising says it all.
lmhardy01
11/10/2006
19:48
Don't wonder at all.
EPG is more liquid with a far higher profile. Just who monitors Ofex announcements?

Moreover EPG have had the good fortune to be an Aussie announcing good CBM drilling results just as Santos announce an A$606m offer for QGC - rejected and QGC is trading at a 20% premium to the offer.

QGC do CBM in Queensland.

rapier686
11/10/2006
19:44
Very interesting, I have to say I am a little disapointed as I value HEP at between 30p - 35.3p per hep share. Lets see what the market does to HEP tomorrow if anything.
lmhardy01
11/10/2006
19:39
Thanks. I don't think by any means that the cash "accounts for it", it just has to join in the calculation.

EPG's price has climbed noticeably over the past few days. HEP's hasn't. So the deal has been struck at a time when HEP's undervaluation relative to EPG is historically large.

You do have to wonder about EPG's fortuitous run-up.

buffin
11/10/2006
19:16
I imagine the 1.5p/share element of the deal amounts to paying out HEP's cash.

At year end, EPG had A$13.5m since when they've been spending in Lorraine, sold their residual Terratek interest for C$440k's worth of shares and Broome for A$2.3m.

If HEP have £800k left, they've presumably spent about £600k since year end, so EPG have spent around £2m = A$5m.

Leaving EPG with about A$11m ~= £4.5m.

So if cash accounts for it, EPG are expanding their interest from 75% to 83% in exchange for £4.5m of funding to the JV.

Which values the complete venture (ex cash) at £9m.

I find that something of an undervaluation!

[Also the takeover will mess up HEP's business asset status for CGT purposes]

rapier686
11/10/2006
18:45
In principle I agree with you. How do their cash positions differ? EPG raised more money and it's been selling assets too. Maybe the calculation is that HEP would have had to dilute more to raise extra funds? (I haven't done the sums yet.)

Hopefully EPG will have floated on AIM if / when it goes through.

Also while HEP's been stationary, EPG's had a run-up over the past few days. Coincidence?

buffin
11/10/2006
18:15
Takeover!


As I wrote on TMF:

I certainly expected European Gas and Heritage Petroleum to merge. But I am astounded at the terms the Heritage directors appear to be agreeable to.

The bulk of the value in both companies lies in their interest in a coalbed methane project in Lorraine, France. EPG hold 75% WI, HEP hold 25% WI.

But the proposed merger terms give HEP 1/6th of the enlarged group.

Unless a very good explanation emerges, I will be refusing the offer.

rapier686
11/10/2006
12:40
IMH, or anyone,, any word on when EPG will head for AIM? Thanks for oilbarrel article, what's happened to the thread, appears to be the old header but just 18 posts??.
egoi
11/10/2006
05:40
Good spot :) ... I've extracted parts to TMF (in suitably sober fashion, I hope, though with this share it's not easy!).

EPG closed at 0.8, up 6.7%.

The ofex site reports HEP's market cap as £8.85m, which seems - let's say - a trifle mean.

buffin
11/10/2006
03:37
11.10.2006 www.oilbarrel.com
Gas In Place Numbers On The Lorraine CBM Project May Be Upgraded As European Gas Limited And Heritage Petroleum Complete First Test Well
It has taken several years to get to this point but ASX-listed European Gas Limited and its Ofex partner Heritage Petroleum have, at last, completed their first well on their coal bed methane properties in France. Preliminary indications appear to show that it has been worth the wait.

Prolonged permitting and planning preceded the spud of the Folschviller St-1 well, which was drilled to a depth of 1,300 metres in the Saint Avold sub-area of the Lorraine CBM lands in eastern France. The well was cored from a depth of 743 metres to 1,300 metres, intersecting six gassy coal packets and recording a net coal pay of 62.41 metres, plus several minor seams not counted in the net coal figure. Four major packets of coal returned over 10 metres of net coal each, with thicknesses ranging from 10.48 metres to 14.92 metres, exceeding or matching original expectations.

"The presence of four thick to very thick gassy coal packets plus two gassy packets of lesser but significant thickness is confirmed," the companies said in a statement. "The multiple coal packets intercepted by Folschviller St-1 are each significant targets for development."

Some of the coal cores were bubbling with gas after extraction, which is a promising sign of their permeability. The companies are now investigating how to quantify the gas-in-place, a process they expect to result in a considerable up-grading of the current resource. Preliminary results indicate the energy density of the Folschviller area is 823 million cubic metres of gas per sq km (29.1 billion cubic feet of gas per sq km), a promising result given the acreage held by the two companies.

The 460 sq km Lorraine permit lies on the Franco-German border in what used to be a major coal mining area, producing 850 million tonnes of bituminous coal (the partners also have an application outstanding for the permit area immediately to the south of the main licence). Enron spotted the potential here in the mid-1990s, coming up with a gas-in-place number of 7 trillion cubic feet of gas in an area of 680 sq km.

When the US energy behemoth imploded in such spectacular fashion, its assets were picked up on the cheap by Heritage, which then bought in EGL as partner. Unlike Enron, the two companies are starting small, focusing their initial efforts on the Saint Avold and Alsting sub areas, which comprise 68 sq km. These sub areas, which account for just 7 per cent of the project's permit and application area, are thought to hold just under 1 tcf of gas.

This is a very tasty resource given the project's location in the heart of Europe, with its booming gas prices, its hunger for cleaner burning fuels and well-developed gas infrastructure. In recent years this cleaner burning CBM gas has started to play an increasingly important role in the European energy mix, raising hopes that CBM production will mirror the impressive growth curve of North America where in ten years production exploded by 640 per cent, or 20 per cent per year, from 210 billion cubic feet in 1990 to 1.35 trillion cubic feet in 2000. Similar growth is expected in Europe.
The next step for the two companies is the drilling of the Diebling well in the Alsting sub-area of the Lorraine permit. It will be drilled to a depth of 1,500 metres and will target six major coal packets. The information from the well will be analysed and feed into development drilling plans, with production test drilling expected to get underway in the first half of next year.

The partners plan to use lateral wells to ensure maximum drainage of the coals, with each well expected to support up to 2,400 metres of lateral development within the same coal packet, with production as high as 1 to 2 million cubic feet per day. Given booming European gas prices, this could quickly add up to a very profitable project for European Gas Limited (which holds 75 per cent of the equity) and Heritage Petroleum (with 25 per cent).
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lmhardy01
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