Empyrean Energy

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

today's drilling report is moderately encouraging and has boosted sp, at least temporarily, by 6p

I had an automatic sell on the system which triggered at 55p, so now need to wait for the usual bounce, which shouldn't be a problem as the next significant level of drilling won't be reached until mid Oct, so I can see it going back down to the +/-40p level.

certainly "gas shows" and "commercial gas flows" are a long way apart

As EME are yet to release this:-

SUGARLOAF-1 PROGRESS REPORT 28 METRE POSSIBLE GAS PAY INTERSECTED IN SECONDARY TARGET

Wire-line logs were successfully run over the open hole section of the well between 6,500 feet (1,981 metres) and present well depth of 14,480 feet (4,413 metres).

Interpretation of logs by the operator, Texas Crude Energy Inc, indicates a 92 feet (28 metres) zone of possible gas pay corresponding with the zone of gas shows obtained during drilling in the secondary target (reported to the ASX on the 20th September 2006).

While Aurora considers that the logs are encouraging, the commercial significance of loginterpreted possible pay can only be assessed by flow testing and that there is a risk that the zone may not flow at commercial rates. Flow testing of the zone is not programmed at this time but will be considered after the well has been drilled to total depth and the primary target assessed.

The current operation at the well-site is the running of the 9-5/8 inch intermediate casing to present depth of 14,480 feet (4,413 metres). Once run and cemented, the well will continue drilling in 8-1/2 inch diameter hole to the primary target expected between approximately 17,000 feet (5,182 metres) and proposed total depth of 21,000 feet (6,400 metres). There is a further secondary target
in carbonate rocks between present depth and just above the primary target.

Assuming trouble-free drilling, the primary Hosston Formation target is expected to be reached in mid to late October and total depth in mid November.
ASX releases will continue to be made routinely every Wednesday unless there are material matters which require an earlier release.

Participants in the Sugarloaf-1 well are:
Aurora Oil & Gas Limited 1 20.0%
Texas Crude Energy Inc (Operator) et al 2 41.5%
Eureka Energy Ltd 12.5%
Adelphi Energy Ltd 20.0%
Empyrean Energy plc 6.0%

I have not seen a cautionary note in respect of a possibility of no flow rates before.

Who wrote this, was it you cynic?

i am incapable of writing such considered assessments!

EME suspended pending an announcement.

Quite ridiculous as this is already known!!

FWIW all the partners did the same in Oz overnight, then resumed up around 20% on the news I have alredy posted.

I had thought I would take a punt, but as they have raised the lifeboat till high tide, I dont think I will bother.

seagoon* ..... leave well alone, to make a rather bad pun but with serious undertone

It's alright cynic, I was only thinking, it's gone now.

It looked for a moment there was some froth to be had.

Not anymore

Can anyone 1 enlighten my on why these shares have been suspended please.

Hi Jimbo.

More bad news again....no commercial flow in Sugarloaf

if that is so, just wish i was not another Cassandra ..... those with a classical education will understand!

tcdmct - if you look 2 posts above you will see why!

However they are doing just the same as the partners did overnight in Oz, which I thought I had already said?

http://en.wikipedia.org/wiki/Cassandra

Cassandra
From Wikipedia, the free encyclopedia
Jump to: navigation, search
For other uses, see Cassandra (disambiguation).

Painting by Evelyn De Morgan.In Greek mythology, Cassandra ("she who entangles men") (also known as Alexandra) was a daughter of King Priam and Queen Hecuba of Troy whose beauty caused Apollo to grant her the gift of prophecy. However, when she did not return his love, Apollo placed a curse on her so that no one would ever believe her predictions.

I like Battlestar Galactica myself!

exactly so seagoon ...... the great unwashed will only recognise the name as that of some columnist in of the tabloids

hlyeo98 why would the price go up as stated above if there is nothing there as you stated.

??????????????????
clearly no longer suspended and news must be at least not negative as sp seemingly up 10p!!!!!!!!!!!!!

still avoid, certainly until all 100% clarified!

Share price not clear to me and don't know much about the co but quickly looking at this report and prospect

They see mean reserve potential 800BCF -- say 1TCF for their benefit or mine really to make the calculation easy

Ready to flow gas in this area probably worth $1bln per TCF. OK that's $60m to EME - 30m, Given close to markets pipelines etc lets say 20m now if they get that 1TCF
This drill shows that they at least got what they were expecting in secondary targets, so the end of OCtober more likely to be a hit than a miss than yesterday.

A hit at expected levels should see share price go above 60p (30m MKTCap)for this prospect alone. Know nothing of the rest of company or debt/cash levels to say what rest is worth

tcdmct - I am concerned that all the partners have thought it necessay to say,

"...the commercial significance of log interpreted possible pay can only be assessed by flow testing and that there is a risk that the zone may not flow at commercial rates."

That did not need to be said.

Interesting all the same.

furthermore, markets are unimpressed ..... only up about 5p on the day

Not sure if this is good or bad sww

looking at rest of co now -- this is certainly most promiment now

They say possible multi-TCF target so let's say 3 TCF is total upside

On my calc if this flows that could be worth as much as 60m to EME on firming up of data --90m when flowing --- so now 180p but we're not going near that price yet

Mid case is for 1TCF -- 20m --- 60m when flowing -- so now 60p so we'll probably edge towards there until end Oct

Bottom case -- worthless and we're left with a oil find that needs to be tested and some water in Germany which may be turned into "wine" at a later date -- 20p per share

So overall reasonable but I know a better upside downside risk but I'm just not saying ;-)

EME have followed the other partners in their course of action, so I say fair enough.

Ignoring the comment that did not need to be said, and they have yet to hit the primary target.

Not bad really.

What happens next?