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For Empire (in its own name or through a "Special Purpose Vehicle" - as if MRT would be impressed by that) to have new exploration licences granted will require them to show evidence of ability to fund the work program and you can bet MRT won't be accepting a letter of credit to Malcolm this time around.
No genuine funds means no new licences. Plus the existing licence is finito, kaput come May.
The list of failed exploration licence applications by GSLM/Empire over the years is impressively long.
You (and others) have never been able to give a rational reason why Smart Win would have capriciously called a halt to handing over the balance of the loan and so jeopardised the $3.9 million already provided.
Smart Win says that EEGC was making unauthorised billings which reason has the ring of truth to it.
Completely untrue. I said EL 14/2009 is a Category 4 licence that does not cover coal or coal bed methane (or gold). And I am well aware of the extent of the coal measures in Tasmania - and how uneconomic the bulk of them are.
You are obviously unaware that gold is not soluble in groundwater. If it were to be analysed for it would be in the drill cuttings and not the drilling fluid. However, in any case the Permo-Triassic does not have any prospectivity at all for gold occurrences and you are just talking tendentious nonsense.
Haha. Like I said. It appears the coal isn't locked up by another company as you stated as there's more coal measure plays than just viewed under Bellvue.
The coal measure "plays" are on the Bellevue drillhole section for all to see (except that they happen to be OIL targets there!).
Drilling fluids are analysed for hydrocarbons and not gold, silver, platinum, nickel, copper, lead, zinc, uranium, tin, tungsten etc. etc. etc.
What hasn't come to fruition is that there is a signed JV Agreement with substantial funds flowing. All the rest is just so much verbiage until that happens.
Decoding this one isn't too hard. The South Koreans are cool on our oil so let's try throwing in some steaming coal as a sweetner. The fun never stops.
So what comes next? Maybe someone will show up here soon extolling the virtues of a great new coal to liquids technology Empire has acquired, like Sasol only better.
What information about Mt Lloyd? There appears to be no grounds that would indicate an oil/gas target to be present there and thin coal seams of no economic interest are well known to be widespread through the Tasmania Basin. It is a late in the day beat-up and the chance of a hole being drilled there by mid-May must be close to zero.
Sounds like it could be an announcement of the start-of-drilling barbecue to be held again at Bellevue, or maybe the dinner menu for the hungry drillers at Bronte Park Lodge is going to be made public. Shareholders can never receive too much vitally important information of this kind.
Look for another Press Release prior to the strat of trading on Monday 9:30 ET. It, I am told , will contain a lot of meat.
What is said about a drilling target for oil/gas in the pre-Permian at Mt Lloyd is unconvincing, there being little reason to suppose the existence of a dome worth drill testing in the absence of geological exposure and seismic data. A few scattered bedding dip observations in the overlying Permo-Triassic are of questionable significance. One has to wonder why it is Malcolm Bendall CEO doing the interpreting and not a qualified geologist such as Dr Burrett. The supposed new discoveries Elijah, Samson and Lightning Domes announced in a 2007 PR disappeared without trace and were never heard of again.
The Mt Lloyd region, interpreted as a geological dome by Empire CEO Malcolm Bendall, has been eroded exposing in places Permian and Triassic coal measures as well as basal Permian sediments, which are within a few hundred metre drilling distance of the pre-Permian rocks that may contain commercial oil and gas.
The only meat that matters is there is a genuinely signed JV Agreement and substantial funds are to hand. Until that happens its just more of the same old same old.
I repeat, proof of what? There is not even a signed option agreement as is stated in the header.
One claim made in the 8K that appears to be erroneous is that GSLM mobilized Terrex into Tasmania since they are already there carrying out seismic surveying for Overseas Energy Holdings. That survey is due to be completed shortly (if not already) and it then becomes questionable how long they would be prepared to remain without some deposit guarantee.
Terrex Seismic who conducted the 2001, 2006 and 2007 seismic programmes for GSLM has been contracted and mobilized to Tasmania
Proof of what? Please elaborate.
The proof is right there for all to see.
Empire has finalized negotiations with a South Korean entity and is due to receive a payment of $100,000 to provide that entity with an option to enter into a $50 Million USD convertible Loan Note and Joint Venture and Management Agreement with NBD Partners Energy to pursue the GSLM drilling program.
MRT has not produced a geological mapsheet for the Mt Lloyd area so what the drill target there is supposed to be remains a mystery.
It could be the seismic work said to have been approved optimistically envisages a lightning dash in there to firm up a conceptual target of some kind.
Coming back to Earth the fact that RPS Energy knew (or at least said) nothing about it speaks volumes.
CTP said in a recent announcement they had released the Hunt No. 3 rig and it was stacked at the drill site in the Northern Territory. So if NBD Partners were to produce some funding quick smart maybe it would be available to drill Bellevue although after this time the chance of that happening is becoming vanishingly small.
There is no such thing as "securing" a drill rig without a substantial upfront deposit. It is first come first served for whoever produces the hard cash. It's just another one of Malcolm's dreamtime stories.
The Mt Lloyd drilling target that appeared from out of left field could be an indicated domal structure on regional geological mapping (just a guess) but it has obviously been hastily thrown in for NBD's benefit to pad out the number of targets within the licence area. I am trying to find a geological plan to see what actually goes on there.
I managed to find Mount Lloyd on Google maps. It is a few miles west of Hobart. Shockingly, unlike a lot of their other 14 wells they "are accelerating our target number of wells this summer to" it is actually in their current licence area. The only problem is that it is no where near where they shot seismics. So I guess that one is all on a hot tip from the big guy upstairs who put all the oil under Tassie in the first place. I am sure NBD's due diligence team will completely understand why some of their $50m should be used to drill there.
While the confidential info obtained obviously could not be disclosed here, all the same it ought to be possible to allude to there being some very positive and exciting developments which will be announced shortly in a PR.
This one was on another board today:
"On the positive side, I'm not discounting the funding coming through in the form of a JV, I just think NBD might be more inclined to agree to Africa over Tasmania given the petroleum systems already found in Uganda/Tanzania etc. I would be happy if they had $50m to drill in Africa, even if Tasmania is a non-starter."
The notion here seems to be "Sorry EEGC we don't like the look of your Tasmanian prospects but here is the $50 million anyway for you to go looking for oil on some acreage you don't hold somewhere in East Africa."
Nope, I think we need a Plan C.
The writer is seemingly unaware of all the failed attempts to obtain funding for drilling over the past 6¾ years and that the licence will expire in mid-May:
Even if EEGC do not get funding from NBD partners I am sure they will raise it by other means.
Another thing in their back pocket is Empire Energy is counter suing SmartWin for significant damages of over $1 Billion. www.new.empireenergy.com Empire is also sitting on a fortune of Oil in Tasmania. I'm certain sourcing funding will not be an issue.
He might be less complacent if he knew more of the background and placed less faith in Empire's own suspect announcements.
No relevance at all to Empire Energy's wannabe Tasmanian oil/natural gas exploration. No large open cuttable coal deposits known in Tasmania. The Sasol CTL process is not licenced to Empire Energy.
It is pointless to post this Sasol information here.
Overseas Energy Holdings are still exploring the EL on which they drilled the Westwood well near Launceston in Nov/Dec 2009. They are doing seismic surveying near Devonport and will be moving into the Launceston district:
http://www.theadvocate.com.au/news/local/news/general/search-for-oil-on-coast-starts-to-get-serious/2436322.aspx
The second para of the introduction badly needs the SEL 13/98 reference removed and replaced by EL 14/2009 with accompanying text revision.
Agreed the Empire Seismic Challenger picture should go (it never had any real relevance). Don't know what might replace it - maybe a pic of Hobart with its iconic Mt Wellington background.
I for one can't make head nor tail of what Empire's claimed involvement with the FASER stuff is supposed to be.
In the 3 June PR it was blithely announced:
Empire is also intending to develop its FASER (Force Amplification by Stimulated Electron Resonance) technology that has many applications ...
as though shareholders already knew of its existence and Empire's "ownership" of it (a MOU in the leader), and then in the 6 December PR was stated:
Empire is continuing to develop strategic ties to principal owners of FASER, and will continue capitalization steps for acquisition of licenses for specific applications pertinent to long range plans
Not only is it unclear what Empire's participation actually is and what commercial considerations relate to its involvement but also what the FASER ("this revolutionary power supply" that is "now ready for mass production") is actually supposed to DO in practical terms.
Drunken Sailor
The Tasmanite oil shale is misleadingly shown as a "target" on the Bellevue drill hole section. While it may be present at depth and intersected in drilling it is not realistically a prospective petroleum reservoir unit for conventional oil/gas exploration.
The Boss Resources oil shale evaluation has no bearing on GSLM's would-be petroleum exploration even though some message board hopefuls would like to think otherwise.
The TXO chart shows a nicely symmetrical head and shoulders commencing from early November (when TXO indicated its intention to proceed with the exercise of the 19.9% option) back to the present. It looks like the excitement of TXO over its new friend Empire has finally run its course.
Will NBD Partners ever be heard of again? Will Crazydameputlipstickonpitbull ever become President of the USA?
It seems that the dastardly conspirators are winning:
Empire has determined to fearlessly and aggressively deal with and make accountable those who have conspired to delay and detour our single-minded objective to complete the drilling of the Bellevue well; those who continue to stand in the way of the drilling program can be assured that Empire will strike back and will not go silently into the night ....
The tension is killing me jersey. Are the contents of the return e-mail too topsecret to divulge?
Thanks a lot for the heads up jersey. I can hardly wait to learn what your e-mail turns up, I'm sure it will be of immense importance.
Certainly the right news (i.e. hard positive news that is credible) should put the pps higher, it doesn't take gazing into some crystal ball chart to tell you that. The only such news that would count at this time would be substantial funding has been obtained that would enable drilling to get underway. Until then people might just as well watch their TV screen as stare wistfully at a price chart.
RPS Energy who are the heavyweight petroleum consultants to Empire Energy (they are the consulting firm who estimate the 2% chance of success for Bellevue and 0.72% for Thunderbolt) are presently testing Cental Petroleum's Surprise-1 well in Australia which is flowing at approx. 400 bpd.
As soon as we obtain the funds for drilling from NBD Partners and discover the oil "assets" it is RPS Energy who are likely to evaluate the well test results and make further recommendations.
For anyone who might question that RPS Energy is a consulting firm of considerable substance here they are at work in an announcement to the Australian Stock Exchange today re. testing of CTP's Surprise-1 well in the Northern Territory:
INITIAL SURPRISE-1 REH RESERVOIR ENGINEERING REPORT POSITIVE
Central Petroleum Limited (ASX:CTP) (“Central” or the “Company”) is pleased to advise that independent consultants RPS Energy Pty Ltd (“RPS”) concluded that the pressure transient data gathered during the production test of Surprise-1REH indicates that the well may access STOIIP (“Stock Tank Oil Initially In Place”) in the range of 0.5 to 2 million barrels in an area proximal to the well. No apparent boundaries were identified during the analysis of the pressure transient data. However, Central acknowledges that no further conclusions regarding the possible range of STOIIP volumes in the entire Surprise structure of c.8 km2 can be made until all available seismic, geological and geophysical data has been integrated and analysed.
RPS based their calculations on a 105m section of the horizontal well bore placed in the lower half of an 8m thick sandstone reservoir section with an average permeability of 50 milliDarcies and a vertical to horizontal permeability ratio of 10%.
From the estimated reservoir pressure and the quasi-stable flowing BHP/rate, a Productivity Index (PI) of 0.65 bopd/psi can be calculated. Even though this is a transient PI and will decrease until reaching pseudo-steady state (“PSS”), the Inflow Performance Relationship (“IPR”) curve suggests significant production increase potential upon greater draw-downs via artificial lift and possibly pressure maintenance in the medium to long term.
Initial flow testing of the Surprise-1REH well produced a final stable flow rate of c.400 BOPD of sweet light crude with an API Gravity averaging 40 deg.
The Company is actively planning, (subject to various approval processes, weather and access), an Extended Production Test (“EPT”) of the Surprise-1REH well coupled with a sales contract for any oil produced. This is anticipated to commence in April 2012.
You are forgetting the late entry Mt Lloyd (wherever THAT one appeared from).
In our sights are Bellevue and Thunderbolt.
That way of calculating the odds is what might be expected to be taught in a degree mill MBA course.
The licence conditions require the expenditure of $7,550,000 but with the drilling of Bellevue to 2800m and Thunderbolt to 2600m it would follow that that amount should be met.
To achieve drilling those holes and keep Empire afloat the mysterious NBD Partners would probably need to hand over $10+ million (we can dismiss out of hand the absurd $50 million for 14 holes this summer). The chance of success of it happening looks to me to be about 2%
Please provide a link. All Google references I come up with for Mark Callaway indicate his whole background and career was financial.
Your anecdote about a deceased accountant versus the extensive and detailed report by a large and reputable petroleum consulting organisation: it's no contest.
Clive Burrett was appointed Director and Chief Geologist at the inaugural meeting of GSLM held in South Hobart in July 1995. He resigned his professorship at the university in 2002.
Clive Burrett did not need to depart the university to have a strong participation in GSLM's oil exploration - he already had it. Also if he though Zeehan Zinc could find and profitably mine zinc ore he must have been sadly disappointed.
Your faith in Empire's PRs is most touching.
Agreed the late batting order looks extremely weak.
The Game is in the final inning. and EEGC has their weakest batting order up it seems.
Whether or not there is other interest in oil exploration has no relevance and "intent" is your own invention. If the licence work conditions and expenditure requirement are not complied with there will be no renewal. MRT has experienced decades of Bendall's antics, including that he was going to see the drilling of Bellevue and Thunderbolt carried out on the current licence by virtue of his $50 million personal line of credit.
To date EEGC also has NO COMPETITION to fight for the rights to SEL 1398. As long as they show good intent they will likely get a license renewal.