Empyrean Energy

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

oilyrag

I did the calculation on your $2.5 / thousand cubic feet. Probably got the decimal point in the wrong place as it looks way way to high

I work on the following

1TCF found but not ready to go a) $200m in North Sea
b) $50m in the middle of nowhere a-la VOG,COIL
etc

1TCF ready to come out of the ground
a) North Sea -- $800m
b) $400m in the middle of nowhere

THese are low but reasonable IMHO as the shares do not trade abover these levels normally Look at VOG for instance

Do you guys ever include the costs of getting the stuff out? You have to drill the wells, put in pipelines and platforms and pay ongoing working costs. There are also the vagiaries of the gas market, which is an awful lot more volatile than the oil one.


Anyway, I digress a bit off topic. Wonder what tomorrow's weekly update will say - whiff or no whiff? ;-)

No whiff

They have stopped short of td to run wireline logs.

Looks promising.

"Sugarloaf Hosston Prospect, Texas USA
-------------------------------------

AIM quoted Empyrean Energy PLC today announces that as at 6am Texas time on 28th
November 2006, the Sugarloaf-1 exploration well located in the onshore Gulf
Coast Basin was at a depth of 20,896 feet (6,371 metres). The current operation
is conditioning the hole and preparing to run wire-line logs.

Since the last report released on 21st November 2006, the well has continued to
drill in the primary target of the Sugarloaf-1 well.

It is expected that the running of the wire-line logs and interpretation of
these and other geological information will take several days.

I think they've TD'd sww. Slightly shorter than planned. Wouldn't read too much into it, but obviously no gas shows for a while??

and clearly the market is unimpressed

The writing was in last week's, cynic - no whiffs!

;-)))

PS - they've had gas, but was it as much as they'd hoped? We'll find out in due course.

It wouldn't be clever if project #3 came up short methinks.

Market certainly don't like it!

Of course experience tells me that running the logs means nothing.......

Woodside do a lot of that offshore Mauritania........ test dry holes.

do hope this thread is not becoming anal ..... lol!

Ha ha ha................I'd better change the wording, no sod it, I'll leave it!

EME's Sugarloaf-1 venture partner 'Adelph' AGM report states the drilled well has 50.5m aggregate gas shows:

http://www.adelphienergy.com.au/files/presentations/ASX%20Release%2028%20November%202006%20-%20Adelphi%202006%20AGM%20Presentation.pdf

Currently running wire logs to determine production test decision!

"drilled well has 50.5m aggregate gas shows" ...... how significant an amount is that? ..... not hugely is my guess, for otherwise sp would have shot up rather than fallen, but am happy to be contradicted

I don't think it means anything significant at all.

I say that depth of 50.5m (170ft) gas shows over many square miles is huge, wire logging should be completed by the weekend.

No matter how big the find if at all, don't lose sight of the fact that it is only 6.5% EME's.

The Master - trust me, it ain't huge!!

50.5m is decent (although not outstanding) in a single horizon, but it would seem this is split over several intervals, i.e. interbedded. It is impossible to map these on seismic and therefore testing is the only way of confirming the potential. Wireline logs should give an idea of porosity, etc.

Personally, I'd hate to be holding for now. If the logs are poor, EME is on the scrapheap IMO with 3 out of 3 disasters. If the logs are decent I still don't see massive upside, but it provides good trading.

;-)

There will be more downside for EME then

Dunno about that - wait until after logs and possible testing to be sure one way or the other.

It's probably safe to say EME is probably not the prospect it was a year ago at less than 40p, though, given how their prospects have failed to produce anything thus far?

oilyrag - 29 Nov 2006 20:31 - 580 of 583
No matter how big the find if at all, don't lose sight of the fact that it is only 6.5% EME's.

I would say its better having 6.5% of something rather than 6.5% of nothing.
Also as far as i know there are 4 companies with holdings in this,they would not still be spending good money looking if they didnt think there would be something worth it at the end.
My guess is there will be somthing good here,and they are keeping it lo key at the moment to get the cheapest share price,then we will see it fly.

Hi tcdmct I agree with you, and as I am holding I hope you are right, I was merely pointing out that they are the minnows in all of this and therefore wouldn't be earning the lions share.