Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
The fact finding mission is apparently still in its early days.
Pitts
As you know there were even more abortive would-be fund raisers before those ones.
It might amuse you to hear of a personal experience I had before GSLM merged with Empire in 2005.
In 2002 GSLM sought to raise $5 million from the public through an Offer Information Statement with subscriptions invited for 5 million shares of $1 a share. A road show to sell them was put in train with public meetings held in large centres in Tasmania and there was even a selling foray made to the mainland.
At a meeting I attended in Tasmania which was addressed by a representatve of GSLM (I had better not name him for fear of inviting a legal writ but I leave it to your imagination to guess who) it was claimed that an (unnamed) investor had offered to take up the the whole of the Offer for $2 a share i.e. a total of $10 million. It was said the offer had been rejected because the Company wanted all Tasmanians the opportunity to participate in their own magnificent project.
In the washup when the Offer closed it had raised only $1.3 million of which I imagine a reasonable percentage went to settle Directors' outstanding expenses. The unknown investor who it was said had been eager to put up the $10 million did not even take up the unsubscribed shares at a $1 (for only $3.7 million) and was never heard of again (why was I not surprised?).
I raised the matter with the Australian Securities Commission and they acknowledged they have it on file.
DS
I think Black Gold's point was that releases by every company should be treated with some degree of caution. Fair enough, unforseeable factors can come out of left field and legitimate expectations not be realised, but where there is good management of proven integrity and ability that considerably lessens the caveat emptor factor compared to the speculative outfits that are run by sharpies and spielers.
Mine is merely a congratulatory e-mail complimenting them on their business acumen.
DS
I have sent this e-mail to Simon Lee:
Dear Simon Lee,
It is wonderful news that NBD Partners Energy, Korea will be soon entering a JV arrangement to develop the extraordinary quantities of oil and coal believed by Empire Energy to exist in Tasmania. It is especially gratifying in view of the several other large financing entities that have shortsightedly declined to participate in this marvellous investment opportunity. It is not every day that 49% of oil assets conservatively valued $2.2 billion (some put the figure much higher) are offered for the relatively trivial sum of $50 million with an equal interest in Tasmania's bountiful coal resources concealed beneath the dolerite capping of the Central Plateau thrown in as well (and not to forget the highly valuable coal bed methane which is sure to be present also). The attraction of high-ash thermal coal that is easily convertible into very valuable coking coal is readily apparent.
Arrangements have not yet been formally announced for the disposal of the copious amounts of natural gas that will inevitably be produced along with the oil but it is expected they will be fed into the existing Duke Energy pipeline which was farsightedly constructed from the mainland to Tasmania with that object in view. However, if that does not prove possible Empire Energy has access to an innovative and patented flare gas recovery technology for which it is expected the Australian rights could easily be obtained.
As a shareholder of Empire Energy I look forward with great anticipation to the day when the first barrel of oil ever produced in Tasmania will be taken on board a supertanker and the first tonne of coal ever to be exported from Tasmania will be loaded by a 400,000 tonne Brazilian bulk carrier at the port of Hobart with its major new infrastructure development.
Not all caveat emptors are equal. Many managements are scrupulously honest and honourable.
It is blindingly obvious that drilling will not commence on the Bellevue #1, Thunderbolt #1 and Mt Lloyd prospects on or before Monday, 2nd April, 2012
Coal in the Appalachians, oil in the African Rift Valley, oil AND coal in Tasmania (including abracadabra conversion of thermal coal into coking coal), Missouri awash with his wonder technologies - shouldn't that read MB has been working his tales off?
I believe I descry your enigmatic meaning.
Tim Baldwin has tiptoed his way through the Empire releases. He has learned they are caveat emptor territory.
DS
Are you tongue in cheek, needling him, trying to elicit some response?
I think it is a deliberate deception. The wording of the 8-K doesn't look like a single seam is being referenced. Add up several thin seams and the 1 metre seam and the sum is a little over 3 metres.
Don't forget this is the bloke who happily speaks (repeatedly) about a multi-billion "asset value" of an undiscovered prospective oil resource:
The Company's current market capitalization and share price is 200 times less than the current asset value of US$2.23 billion (AUD$2.48 billion) comparative market value. (PR of 28 April 2010)
the Company's current market capitalization and share price is 200 times less than the third party estimated asset value of US$2.23 billion (AUD$2.48 billion). (PR of 8 June 2010)
the Company's current market capitalization and share price is 200 times less than the third party estimated asset value of US$2.23 billion (AUD$2.48 billion) (PR of 24 June 2010)
the company's $3.3billion certified asset valuation (PR of 1 Sept 2010)
The stated thickness of over 3 metres is very misleading. The hole drilling logs are included in the report on the drilling by K L Burns "Coal Exploration - Mt Lloyd" (1959) and it is clear that several widely separated thin seams (the best is a little over 1m thick) have been aggregated to give a single misleading thickness of 3m. THERE IS NO SINGLE COAL SEAM THAT IS 3 METRES THICK WHICH WOULD BE AN INTERESTING THICKNESS IF IT HAD IN FACT BEEN INTERSECTED IN THE DRILL HOLES.
http://www.mrt.tas.gov.au/mrtdoc/dominfo/download/TR3_92_103/TR3_92_103.pdf
Does anyone else get the feeling we are being softened up for the finish of the long-running oil game, but no matter IT'S ON WITH THE COAL!
Not only is Malcolm breezily going to find and mine (applying his "mining expertise" which presumably amounts to his zinc mining disasters) millions of tonnes of coal a year but he is also going to give a helping hand to the existing coal producers who are too dimwitted to know how to go about things. The Cornwall Coal Company will be overjoyed to learn of Malcolm's plans for them and must be awaiting his arrival with bated breath.
Amazing stuff.
From the PR:
The 500 million tonnes is a geological estimate which includes a high proportion that would be uneconomic to mine.
It would be interesting to know where in the port of Hobart (with its "significant major new port infrastructure development") a coal loading terminal to handle 10 million tonnes a year would be located. But it's good to know that Brazilian bulk carriers are on hand ready to do the shipping.
I imagine after MRT's unfortunate experience with Malcolm's $50 million line of credit (that was going to see Bellevue and Thunderbolt drilled) which was accepted (however reluctantly) as the proof of funding for the granting of EL 14/2009 it will want to do some thorough checking on who Nemo Energy Partners are and how authentic their $3.3 million proof of funds is.
As well as Brazilian bulk carriers loading coal there will apparently also be supertankers taking on huge quantities of heavy oil (and also US aircraft carriers or tankers regularly arriving to load 5.5 million barrels per year of jet fuel from Empire's oil refinery if they accept the unsolicited proposal). My word, Hobart will be virtually unrecognisable when all this happens.
The mud loggers must have forgotten to bring the logging truck unit with them and have been sent back to fetch it.
Completely wrong. Vitrinite reflectance is an optical property measured in the laboratory on an actual coal specimen. It has nothing to do with reflection of seismic waves.
A few billion for the oil, a few billion for the flare gas technology, a few billion for the coal (Tasmanian only with Kentucky still to come) and pretty soon you are talking real money.
Stop it Malcolm, please stop, you are killing me.
DS
There might still be time to squeeze in Bellevue by mid-May but I would guess time has run out for Thunderbolt (and a hole at Mt Lloyd was only ever completely fanciful).
They will no doubt be besieging MRT with demands for an extension of the licence but they will need to get lucky there.
DS
Empire will have submitted the paper work for the coal licence applications (that is the easy part and Empire has had plenty of practise doing it in the past) but as time goes on it looks like MRT is in no hurry to recognise them and and give them formal EL numbers for further consideration. They might want more info on/verification of the SPV entity in whose name the applications are being made.
I'm glad you brought up Empire's PK status. It's something I've been meaning to ask about for some time.
Empire is again up to date on filings and will reapply soon with FINRA to regain status on the Over the Counter Bulletin Board (OTCBB). (PR of 24 June 2010)
Empire has additionally engaged the services of a private firm to organize and manage Empire's application for listing on the National Market System. The Company anticipates being listed on the full NASDAQ shortly. (PR of 10 Aug 2010)
Have you heard (from Mr Villareal perhaps) when they expect to regain OTCBB status? It can't be far off now.
Industry in the State is adequately catered for by the present producers. But Great Mount Lloyd Coal Mines Ltd could try bagging it up and selling it door to door.
BLACK GOLD
What more do you want that was not in my #23599 which preceeded this post of yours?
Okay here is a bit extra:
I wish HardRock well but I think they have a hard job in front of them.
As for Mt Lloyd I think that to be a transparent rort for the several reasons I have already given.
This is such jolly fun, it takes me back to the days of Bill Clinton (another lawyer) and the meaning of "is".
Interesting thought that. Can Smart Win truly be blamed for Malcolm's $50 million personal line of credit not coming through that he undertook to underwrite the rights issue with and which was going to see the drilling of Bellevue and Thunderbolt carried out? And after all it only needed one fifth of the line of credit to be real in order to get the job done.
Even if Empire were to win its counterclaim and a damages award against Smart Win lawyer BLACK GOLD has pointed out it is not know if (as a Hong Kong formed JV) they have assets in the US. Malcolm might have to settle for being given a letter of credit by them.
It is interesting that HardRock Coal Mining speaks of an intention to mine and export coal from Tasmania, however at this stage it should be noted:
they hold exploration licences (two) and not mining leases
their licences are in the Fingal Valley which is the major coal mining area of the State (and not a "hop skip and a jump" from Mt Lloyd)
the mine they envisage is underground (expensive) and not open cut
they have yet to confirm they have identified export quality coal in economic amounts on their licence(s)
they envisage exporting through the established northern industrial port of Bell Bay
the long established mining company operating in the Fingal Valley apparently has not recognised a similar exporting opportunity
None of this marks any improvement on reports that indicate Mt Lloyd coal to have a high ash content and generally to be a dubious mining proposition. Empire's two SPV licence applications have not yet been listed at the MRT website.
This post from another board (steddieddie msg 4425 at UK.ADVFN) would seem to clear up the little mystery concerning the origin of Tasmania Oil and Gas Limited:
For the record, TB did not set up Tas O&G in 2005. It was set up as TXO by Texas Oil & Gas so as to "hold" the availability of the name at Companies House. The parent and the newco then swapped names. It's a regular practise where a Co intends to change its name but needs certainty of availability of the new name while process takes place.
In this case, the newco, then bearing the parent's former name became a dormant co of the newly-named TXO which, of course, TB arrived last year with a mission to re-invent. This dormant co on TXO's books was subsequently renamed to Tas Oil & Gas as a vehicle involved in the revival of Empire.
I also have a copy of the second RPS Energy report. It is titled "Economic Evaluation of the Bellevue and Thunderbolt Prospects in SEL 13-98, Australia" and dated December 2009
It is included as Appendix P in Empire's "Due Diligence Addendum Prepared for Hunter-Wise Companies" which is dated January 2011. It was not put up independently on the website and when the Due Diligence Addendum was taken down it disappeared with it.
The second RPS Energy report does not re-visit the COS calculations of the first (and main) report which continue to apply. Arbitrarily seized upon percentages relating to different subject matters in the second report have no connection at all with the COS figures (as has been explained in previous posts).
BLACK GOLD
I am at a loss to understand why you keep speaking of coking coal at Mt Lloyd when the PR of 10 February itself states "with the intent to develop identified Tasmania Basin thermal black coal potential". It may be that you don't understand the difference between thermal coal and coking coal and it could assist your fact-finding mission to know that thermal coal is used to raise steam in boilers for electricity generation while coking coal is of a higher burning quality and introduced directly into blast furnaces in the steel making process. Perhaps you also don't know that Australia exports large quantities of thermal coal as well as coking coal.
To seek out independently prepared reports and accord them due weight does not indicate a closed mind. There is little point in again going over the ground already covered. Suffice to say the "Geology and Mineral Resources of Tasmania" is a highly authoritative publication and MRT would be only too happy to draw attention to good prospectivity at Mt Lloyd if it really existed.
However, I do reiterate my learned friend that it is a well established fact that Tasmanian coal is not suitable for export (as both coking and steaming coal) at least as far as those who are qualified to state it to be so are concerned.
BobSinCA
You give a fair summary of past failures.
There is no picture of an oil pool on the website and if you have other pictures of other purported oil pools in Tasmania then they are fakes.
The rock specimen picture on the website is from the Lonnavale occurrence (not a seep) and it is difficult to discern oil in it against the dark dolerite background. I have personally visited the Lonnavale site and was hard pressed to find any evidence of hydrocarbons in the dolerite at all. I have even heard a suggestion that the specimen shown on the website has been "enhanced" by some engine oil from an automobile.
LOL. Or alternatively God might have said to Malcolm "You mark my words young Malcolm, there is oil in Tanzania" and the whole Tasmanian frolic has been based on a simple misunderstanding.
I am a Tasmanian and I know that to be a complete lie.
Interpretation of seismic data and profiles should be left to the professionals. An amateur casting a simplistic eye over an obvious flexure or disruption in a seismic profile can jump to unwarranted conclusions.
As far as oil prospectivity goes there is a lot more to it than simply inspecting seismic profiles.
For example, the Wurawina Supergroup strata (below the Permian unconformity) in which the major Bellevue and Thunderbolt targets are identified are known to be widely folded throughout Tasmania, including many places where the beds outcrop at surface without any sign at all of there being breached or shallow oil reservoirs.
Yes there is a domal structure evident at Bellevue but that is only the start of the assessment process and there are many additional factors and contingencies that come into play.
See also post #23527