PapalPower
- 21 Nov 2005 08:12
hlyeo98
- 29 Nov 2006 22:30
- 582 of 2087
There will be more downside for EME then
Big Al
- 30 Nov 2006 02:30
- 583 of 2087
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?
tcdmct
- 30 Nov 2006 08:45
- 584 of 2087
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.
oilyrag
- 30 Nov 2006 08:54
- 585 of 2087
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.
shadow
- 30 Nov 2006 13:50
- 586 of 2087
6.5 % is rather good for eme as the potential of 800BCF may be available now td is reached its only a matter of short period of time before, the vast amount of reserves are announced so the placeing price of 1.30p will initially be surpassed soon.!
Big Al
- 30 Nov 2006 20:00
- 587 of 2087
tcdmct - you don't half talk some rubbish.
Pretty much all wells, be they dry or gushers, have several partners. "Good money" is more often spent on dusters than wells with producable reservoirs. It's the nature of the game. And you always log wells whether you've seen anything during drilling or not. It's a condition of the drilling license the world over and always has been.
You should learn something of the industry you are investing in IMO!
tcdmct
- 02 Dec 2006 22:43
- 588 of 2087
Big Al
You can suck on my drilling point and see if i can produce a gusher.Some how i think you will fail.
Regards TCDMCT
Big Al
- 03 Dec 2006 01:03
- 589 of 2087
;-)))))))
tcdmct
- 03 Dec 2006 08:03
- 590 of 2087
No its a little larger than that,Oh sorry what that your???????
Big Al
- 03 Dec 2006 20:09
- 591 of 2087
;-))))))))
seawallwalker
- 04 Dec 2006 09:16
- 592 of 2087
drid123
- 04 Dec 2006 09:18
- 593 of 2087
.
Big Al
- 04 Dec 2006 18:29
- 594 of 2087
Thanks for the link, sww.
So, last week's "potential" has been almost halved to 90ft net over several intervals. They also have to frac it to gain what they think might be a meaningful flowrate/production at an additional cost of $2m. I can't remember that bit being part of the plan - anyone else?
Conclusion - they've got something at Sugarloaf, but it is certainly not what was hope for I'd say. Price movement confirms IMO and it's going to be some time before they get to flow the thing due to tightness in the equipment market. Price likely to drift downwards on a lack of newsflow unless another project springs forward to catch the eye of punters?
Hmmm.
Big Al
- 04 Dec 2006 18:34
- 595 of 2087
Full RNS :
Empyrean Energy PLC
04 December 2006
Empyrean Energy PLC
('Empyrean' or the 'Company'; Ticker: (EME))
Sugarloaf Hosston Prospect, Texas USA
Sugarloaf-1, Primary target- Wire-line log Interpretation
----------------------------------------------------------
AIM quoted Empyrean Energy PLC today announces that wire-line logs were
successfully run over the open hole section of the Sugarloaf-1 well between
16,998 feet (5,182 metres) and total depth of 20,896 feet (6,371 metres).
Interpretation of wire-line logs over the primary target indicates that an
aggregate of 90 feet (27.4 metres) of potential reservoir are gas saturated and
may be capable of commercial production after fracture stimulation.
Based on the log interpretation and the gas indications obtained while drilling,
the well participants have elected to run and cement a production liner,
fracture stimulate and test the zones of potential interest. The total cost of
these operations is estimated to be US$2 million.
By 6am Texas time on 3 December 2006, the production liner was in the process of
being run to total depth prior to the well being prepared for temporary
suspension so that the deep drilling rig can be released.
Preparation of the well for fracture stimulation and flow testing will be
carried out with a smaller work-over rig. An update on the timing of the
fracture stimulation and flow testing operations will be provided when the
equipment has been contracted.
After the primary target has been tested the joint venture will make a decision
on production testing the shallower carbonate reservoirs previously identified
as potentially productive.
The information contained in this announcement was completed and reviewed by the
Technical Director of Empyrean Energy Plc, Mr Frank Brophy BSc (Hons) who has
over 40 years experience as a petroleum geologist.
I have bolded the bits I find interesting. I've read this a couple of times now and find no concrete positive. It's all negative news compared to what has gone before IMO and the final paragraph on testing the shallower stuff is simply thrown in to leave us with a "carrot".
"Nil point" as they say on Eurovision!!
Al
;-)
cynic
- 04 Dec 2006 18:47
- 596 of 2087
"gas saturated and may be capable of commercial production after fracture stimulation"
that was the bit i found both interesting and pretty negative - i.e. even if the primary target is deemed capable of commercial production, it will still not be straightforward.
my biased opinion is that if you have a profit, take it now, and if you haven't, then consider seriously whether or not the wisest course of action would be to cut and run
Big Al
- 04 Dec 2006 19:38
- 597 of 2087
cycnic - indeed.
The point is, in plain English, that this reservoir is deep. Rocks at that depth are highly compacted due to the weight of overburden. This reduces porosity and premeability (general rule), thereby reducing pore space to hold larger volumes of gas (or oil or water) and its ability to flow between pores in order to produce. Stimulation increases permeability allowing higher flowrates. It can't, of course, increase the volume held in the reservoir.
Here endeth Al's layman's guide to oilfield reservoirs!! LOL!
seawallwalker
- 04 Dec 2006 20:42
- 598 of 2087
Big Al - I thank you again for your ability to interpret what I read, and find the relevent bits.
It's very kind of you to take the time out to do this.
I have to agree with your and cynic's view, and I did not rush over to my broker to buy any of these on the strength of the RNS.
If this is uncommercial and it looks bordderline at best, it would cause the Company problems I think.
I was reading an article in The Telegraph about AIM E&P co's not finding it so easy to get Institutional backers of late,
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/12/03/ccoil03.xml
I also note Fidelity are trimming back across the board in mid to minnow oilers. I suspect they have been stung too many times now, and that is the reason for portfolio readjustment.
Certainly I have been of the view that it is better to have a hand in oilers that have tangiable assets rather than best guesses of where they may find something.
Typically if you look at the Mauritanian experience, the Woodside geologists are very good at finding dust at the bottom of the ocean hit rate is now about 1/10, of these commercu=iality is a lesser fraction and that's probably why they fired their Chief Geologist a few months back.
This Company may have found something with it's partners but will it be enough to be commercial?
I doubt it.
I work now according to these rules,
1) Never fall in love with a share
2) Never fall in love with a share
3) Never fall in love with a share
Seems to work this week!
Big Al
- 04 Dec 2006 21:54
- 599 of 2087
sww - no problem. There's never any absolute certainty of course, but it's been an interesting exercise in outing the likely truth here.
At the end of the day, gas readings whilst drilling are highly subjective and can be easily influenced by the overbalance of the mud. I've drilled reservoirs that have been gushers, but we saw nothing due to the high differential pressure. Then there's the flipside - here we saw, on the surface of it, decent gas shows, but we were not given all the info, i.e. mud weight, ROP, flowrates, etc, etc, which all determine the value of that gas show. Of course, with EME and many other explorers, they emphasise the "good" and the suckers pile in. The fact the have to frac to get anything meaningful implies the gas shows when drilling were highly misleading IMO in the overall scheme of things.
That is also a good lead into the article you linked. It sums things up perfectly. The gold rush in AIM resource stocks was over early this year IMO and the majority of money has been made watching hopes becaome disappointment as fail to deliver even a sniff.
The BBs are full of threads dedicated to once hopeful outfits that are approaching the end, FAO indeed being one. They've no cash left, but punters are still running around quoting this or that valuation. At the end of the day, it will go for bottom dollar, otherwise the bigger fish simply wait for the company to die and pick the acreage up for little or nothing when it is put back up for sale/lease.
RESOURCE STOCKS ARE HIGH RISK!!
I just wish small investors would realise this and invest accordingly, which also means when to get out and how little to risk when you invest in these things!! Unfortuntaely the BBs are populated by mugs desperate to make quick cash and they swallow RNS's like sweeties.
Speaking of swallowing, where's my buddie? ;-)
oilyrag
- 05 Dec 2006 08:41
- 600 of 2087
Oh my god, have you seen the latest, a 44% share in project Margarita. 6 low risk shallow wells followed by 3 higher risk deep wells. I reckon were gonna have RNS's coming out of our ears. Still it may push sp a little higher because Sugarloaf certainly isn't.
Big Al
- 05 Dec 2006 19:36
- 601 of 2087
I like the drink and the project intrigues.
Overall, though, there's stuff to produce in Texas, but let's not get carried away. It's probably the most mature province in the world and finding / producing large ain't possible.
What EME, like all small outfits, really needs now is cashflow from production or selling finds on. It can't keep haemorraging (spelling?) money like this forever.