Empyrean Energy

Web site : http://www.empyreanenergy.com

sounds like more bad news imminent and this is the sugared pill

my thoughts exactly Al, 1.46m doesn't sound a lot with their cash burn...

Should be sub 20p soon.

The update as is, no problem, but the clarification of monies left tends to suggest they will be looking for more money soon, which makes the while update now seem like a precursor to going cap in hand for money.

Present market climate, that might be sub 10p levels..........


Not a good time to be a large EME holder I am afraid, imo.

Glad I'm not the only one reading the same "between the lines" implication.

I'm bound to say you make your own luck to a certain extent in the drilling game and EME made none of the good variety at all. ;-0

They have a nice epic and name.


Nothing much else appeals.

What price a fund raising ?

15p ? 12p ? 10p ?


In its present condition you'd say that 10p is possible, so holders must be hoping for some good news on something soon, at least to offer some downside protection against when the cap is held out for funds. At least if they could get some good news in the weeks and months ahead, it might support say a 20p placing price, but its now in the very high risk category, very high risk, and there is no point in trying to talk it into not being there.

PP - absolutely correct.

50.5m shares in issue and mkt cap around 10m now is not much when you're trying to raise enough dosh to drill in the current climate for rigs and equipment.

I suspect EME is a lost cause, but then I was never much of a bull!

EME certainly has shown that they have no game plan and its management are a bunch of idiots who have no clue at all in the oil business. Who would buy if they place more shares? It is a SELL and nothing else.

bloody hell!- didnt think the rns was that bad. still testing.

The new RNS states they see no reason for the fall in the price. Yeah, right. Shareholders are sick of a constant stream of bad news and they see "better risk / reward opportunities elsewhere"!! ;-))

Said well, that was...

Here it is,
http://www.investegate.co.uk/Article.aspx?id=200802191207193033O
5 Wells to test, all paid for,"what a bargain"
cyril

market rarely gets things wrong .... EME management do nearly all the time

I can't agree with that cynic, i could give you many examples over the last few weeks alone. But lets take TMAN now 31p all on the RNS that a challenge for the
extension to(not the actual) licence to NGPT which puts now their P2 reserves at "JUST 55 CENTS"?
Now lets look at EME, an RNS just a couple of weeks ago and the SP hits 38p,
whats changed, not much really. So they have just 1.46m cash in hand(15.5%
of company value),but all drilling and testing costs have been paid for 5 wells , and as i stated news from one of them was responseable for a sharp increase in the SP,couple this with a small revenue from Margaretta and we have little cash burn. Now i mentioned on several occasions that EME are junior partners, so its
out of their hands(any suggestions on this front).
What we have is a market(especially the aim ) which is more a gambling forum than a means for raising revenve(fundimentals a joke) for companies, which is the supposed purpose?
Yes theirs a chance that all wells will turn out dusters, but thats true of all explorer's.
cyril

Could be a lot of people having to eat humble pie on here!
A large part of the recent drop in the current share price was the decision not to proceed with the Margarita Deeps. Since EME had never committed to being a partner and merely had an option (based on the results of the shallow wells) the decision not to continue may well have been prudent.
The second part of the drop was the announcement of their cash in hand. Many people took this that as a share issue in the offing, despite the RNS tending to suggest the opposite.
So jn fact the drop was caused by negativity based on previous disappointments rather than a fair reading of the information on hand.

I really can't agree with you about AIM, Cyril. It is an excellent market for companies at a certain stage of their development and does attract a fair number of quality companies. The only problem is that in many cases you have to sort the wheat from the chaff very rigourously due to limited sources of information. However I would admit that AIM has underperformed but so has the FTSE small caps, but that basically comes down to risk aversion by the great but not very brave British share-buying public.

or damn fools who are happy to chuck money at a company with proven dud management and track record.

on a different subject, small caps, which covers the majority of AIM stocks, are illiquid .... that is the reason for their volatility and has little or nothing to do with risk aversion

I've been awaiting my EME humble pie for ages, John. Absolutely starving now!! ;-))

Now 21.5p
Post 1388 16.0p
5.5+
5.5/16= 31.5%
cyril

;-))

the humble pie will be replaced by, Eme as the sugarloaf-1 will be spectacular when this starts flowing, on a huge scale a break out is evident and will reflect des to 80p and above.