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It is a fact that the exploration licence expires in May (actually 16-17 and not 12) ... and by way of a reminder the chance of success for Bellevue is 2% and Thunderbolt 0.72%
A comparison of oil exploration with "product development" is hardly appropriate.
If you also have in mind the flare gas technology then that was first announced 2.5 years ago and we had been led to believe it would take $300 million to develop and commercialize it (the recent splurge about how great it will be for the oil discoveries East African Oil will make absentmindedly overlooked the fact that as far as we know it hasn't even been demonstrated to be a commercial proposition as yet). They had better get a move on if they are going to meet your not too rigorous time scale of 4-5 years.
Incidentally, one wonders why Empire should have been talking of doing the deveopmental work off its own bat when it holds only the N and S American rights for the purported technology (is it any more so far than someone's musings on paper?). No talk of the holder(s) of the rights for the rest of the world contributing large stacks of greenbacks. Something funny going on there if the principals can't attend to the full development and instead leave it up to a lightweight licensee to sort out.
No wait, STOP THE PRESSES, the latest is that a facility with a FORTURE [sic] 150 plant manager has been identified in Missouri that is going to take over the development (along with the vaunted FASER) apparently on a shoestring budget. Wow, maybe we get to the finish line just inside your 5 years after all.
Post Script: on further reflection I think a patented invention does require a working model.
sometimes it takes....
4-5 years, or more for product development to occur....eegc's product is developing oil companies/properties and other entities....overnight successes take years...the time is upon us now...
But the Kintex Hotel project is with NBD Korea and nothing shows up for NBD Partners Korea. I'm yet to be convinced.
Those posters at ii who are looking for an extension of the exploration licence to be made in order to wrap up a supposedly conditional agreement that has already been reached are barking up the wrong tree. There is no way such an extension will be granted by MRT. If Bellevue and Thunderbolt are drilled by May as required in the conditions of the EL then a renewal could reasonably be expected at that time.
Furthermore there simply aren't 14 hole targets in sight on the exploration licence (note licence not licences) and the notion of any funder buying into that story is beyond belief. The 14 holes that have been bandied about include targets on ground that GSLM no longer holds (lost when the reduced area EL 14/2009 was granted).
I can't see MRT objecting to a JV in which Empire/GSLM holds a 51% interest that achieves the drilling of Bellevue and Thunderbolt, in fact they would likely enthusiastically welcome it.
A poster on yet another message board said not very long ago he knew for a fact that Kim Jong Il of North Korea had a pen in his hand and was about to sign the $50 million joint venture agreement when he unfortunately keeled over dead in the railway carriage.
Could this guy have set a Korea rumour running?
It's rather curious that the answer to that supremely interesting and important question that many have been asking for weeks (and which Empire or TXO could easily have revealed in a PR) is casually given to a ramper poster who goes by the ID thesack and who is unforthcoming on confirmatory details of his contact with Tim Baldwin.
You have piqued my curiosity. What is "qualitive oil administration" and which of the two alternatives do you see as applying to Empire Energy?
One with qualitive oil administrative experience and the other with exploration experience and potentially large sources of oil.
I can't understand what happened to the PR. That source is usually so reliable. More patience is required I guess.
"EEGC is expected to put out another announcement by tomorrow if not sooner"
Maybe I can simplify it for you:
Empire Energy has not acquired any shareholding in East African Oil Limited and EAO is not a subsidiary of Empire Energy
Empire Energy does not have a formal Joint Venture with NBD Partners (and nor it did with Smart Win)
I hope that helps.
Geez, I don't know pitts.
Sorry, I was out of town. But, so I return and this is what
I get:
Quote:
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EEGC's own 8K proves you are wrong.
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Putting me out there like that eh and telling me I've mislead you?
Again?
C'mon now, again you should know better...
As such, I presume you ascribe the company's following statement to your charge
Quote:
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"Empire has acquired a 75% interest",
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Let me refresh you that there is a BIG difference in reacting -vs-reasoning on information in an 8k. It's kind of a comparative study. A mind thing.
So, please be mindful of the relevant law governing actions of public companies. Also, the pretext of the 8k will proscribe the reasoning for the 8k. I've attached an instructive form for your convience that describes the reasoning for issuing an 8k. A requirement by law upon an event like the one you allude to in your post.
www.sec.gov/about/forms/form8-k.pdf
That particular 8k was proscribed as: Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 and as attached:
http://taft.law.uc.edu/CCL/34Act/sec13.html
Again, Section 13 (l) which is inclusive in Section 13 proscribes the following:
Real Time Issuer Disclosures
"Each issuer reporting under section 13(a) or 15(d) shall disclose to the public on a rapid and current basis such additional information concerning material changes in the financial condition or operations of the issuer, in plain English, which may include trend and qualitative information and graphic presentations, as the Commission determines, by rule, is necessary or useful for the protection of investors and in the public interest."
Now, when the company was reporting "Empire has acquired a 75% interest" in the EAO the term "interest" certainly includes an option which is not inclusive as a definition in the word "interest" in the requirement to report under the law. Further any term can be used which may include trend and qualitative information. As such, you were duly notified being a member of the public even if you happen to not be a shareholder.
Conversely, if you are a shareholder you were notified because that information is useful for your protection. What you do with that information is strictly up to you. Personally as a shareholder, I have no problem with it.
Surely and reasonably, a single candle dispells a hundred years of darkness
The astute investor sees and considers both the pros and cons of a stock. It's a very long time since I saw any pros for this one. The recent PRs of Empire have been an utter disgrace. Those whom the gods wish to destroy they first drive mad.
The present position (which is what matters) is that EL 14/2009 does not have coal seam gas/ coal bed methane rights. It is a Category 4 exploration licence for petroleum and natural gas and nothing else.
"Empire and its new JV partner NBD Partners moves to bid on Ugandan East African Rift Valley oil and gas licenses, through its new UK subsidiary East African Oil Company Limited"
At 10 Jan Empire Energy held no shares in East Africa Oil Company and it (i.e. EAOC) therefore could not be its (i.e. EEGC) subsidiary company.
Game, set and match I think.
Empire has never maintained ownership. For you to say Empire has lied is indeed itself a lie
There is a resounding difference between ownership of a subsidiary company through an actual shareholding and an option to acquire shares that would confer ownership if the option were to be exercised (which in EEGC's case would require finding 400,000 bp that may well not happen.)
Empire has played fast and loose with the truth - no that is being too charitable, they have outright lied.
Actually you maintained that not to be able to "keep" gold accidentally found during petroleum drilling represented sovereign risk. It would be no such sovereign risk since any competent explorer knows the minerals that are covered by its licence on making the application for it.
Your claim regarding coal rights is likewise without foundation. Of course, there would be nothing to prevent the company applying for an overlapping Category 2 (coal) licence or mining lease where there was no existing tenement in force.
Is there any chance you could depersonalise your posts and cease the irrelevant personal comments that contribute nothing?
He's right! From another board:
Empire announcement reproduced by TXO:
"Empire and its new JV partner NBD Partners moves to bid on Ugandan East African Rift Valley oil and gas licenses, through its new UK subsidiary East African Oil Company Limited"
Last night's RNS
Empire Energy Corporation International ("Empire") (Pink Sheets: EEGC.pk) has THE OPTION TO acquire 13,650,499 new shares in exchange for cash of £400,000.
Hardly a new subsidiary then is it?
Empire have deliberately misled on that fact and deliberately misled on the status of the JV, they have a long history of misleading the market in the US, which is why their shares are bombed out and there has been no increase in trading volumes since their announcement.
TXO have clarified one of Empire's deliberately misleading statements, they now need to do the same with the other far more important misleading statement regarding the JV.
Anybody entering into a JV with Empire for $50m is going to have to do serious due diligence. How is all the message from God and the long track record of misleading everyone going to fare against proper due diligence?
TXO's share price hasn't exactly entered into the spirit of the East African oil quest: down from 0.8p when it was announced on 10 Jan to 0.61 today (and down from c. 1.0 when EEGC announced the Asian expedition).
With the company acquiring 75% interest in the East African Oil Company and interests w/ TXO in both companies it's clearly evident many good things are happening.
So much rapturous talk of a glorious future in East Africa, so little mention anymore of Tasmania that was once said (as long ago as April 2001 when Malcolm announced that Great South Land Minerals Ltd had secured $50 million in backing from an American company) to be going to become the equivalent of a rich Arab state.
Off with the old, on with the new.
Anyway, it will be good to leave behind the threat to sovereign risk identified by one poster in the way the Tasmanian Mineral Resources Act operates for the security conferred by East African governments of unimpeachable probity and integrity.
The second paragraph needs to be amended according to new information to hand:
As for "expanding" into Africa it is not possible to expand a big fat zero and that is just another one of Bendall's attempted distractions. The hype about using the famed GTL technology (which Empire does not hold the rights to) to ginger up oil production from undiscovered oil fields on non-existent tenements that have not been drilled and which are not held by an entity in which Empire Energy does not hold an interest with 10% of the imaginary profits going to the Ugandan people (assuming they were ever to make it past the guys running the country) ought to be sufficient clue as to how much nonsense that is.
Since at 17 January Empire only holds an option to acquire a 74.9% interest in EAOC the following header and body content of its release of 10 January PR are blatantly incorrect and wilfully misleading:
Empire and its new JV partner NBD Partners moves to bid on Ugandan East African Rift Valley oil and gas licenses, through its new UK subsidiary East African Oil Company Limited
and
Empire has acquired a 75% interest in East African Oil Company
From its website EmiratesNBD doesn't look much like it goes in for funding high risk oil exploration.
NBD Partners is possibly Norman, Brian & Dorothy (or some such) operating from a hole in the wall office in a less salubrious part of town.
Such speculation is legitimate with Malcolm being so cute about who and where they are.
I cannot ... ahem ... take the credit, it is someone else's. I just wrapped things up with a befitting epilogue.
If they follow through based on the PR's this small company is going to make HUGE $$$ and we as shareholders will benefit big time - imo. I suggest everyone on this board needs to have stock in EECG at this low price point of 2 cents. Looking forward to a very profitable summer in TAS in 2012. Can you imagine when EEGC climbs to 5 cents, then 8, then 12, then 15, then 20 as they are drilling, then first news of hitting oil we jump to 50 cents, then they verify the quantity of oil they found and where it goes from there is anyone's guess ($1, $5, $10 ?? who knows). Then they drill more wells and off we go.
And they all lived happily ever after driving their Bentleys, sailing their luxury yachts, jetsetting the world (not forgetting Monaco and breaking the bank at Monte Carlo), and putting their kids through the best colleges money can buy.
I checked out the link and you certainly have done your homework including info on Tim B and East Africa Oil Company that hasn't appeared here before. The info you have tracked down on TXO/Baldwin inspires little confidence in their being a sugar daddy for EEGC.
The whole of the "sale" "joint venture" and "funding" talk since 3 June is an inconsistent and incoherent mess and I think there will be tears before bedtime over it.
As a side note I thought this comment by one of the few seriously informed contributors (chase) to be amusingly understated:
I personally think 14 wells is a little over ambitious and would be seen risky by any financing partner so maybe not 50 but a little less to begin with
At this late stage even one well is looking a little over ambitious.
They must be getting rather bored being on standby all this time.
According to TXO Rig & Drilling crew on standby on funding execution.
Your best hope of seeing 25 cents is a reverse split but I wouldn't bet on it even then.
TXO was "sold" the 49% stake over seven months ago but they still haven't settled up and formed the joint venture. Their well heeled buddies somewhere in Asia who they recommended to EEGC six weeks ago still haven't come through with the ... cough ... $50 million. Maybe as a consolation prize Malcolm will return waving a ... cough ... $50 million letter of credit from them.
Some might question how proficient they are as an investment facility at raising funds.
There's nothing surprising about that, it's fairly standard practice for small companies.
However, I can't help but notice that recently everytime the company puts out a press release TXO states the same thing.
The information which is generally available to all stockholders is not at all encouraging. A nebulous claim to have information to the contrary is hardly persuasive.
If it is TXO riding off EEGC's coat tails and not vice versa then we are in even deeper trouble than I thought.
If anything TXO is riding off of Empire's coattails!
I have thought about it - it didn't take long - and concluded that TXO could not come up with the funds on its own account to drill in Tasmania (it was first "sold" a 49% stake in June) and it has apparently come unstuck betting that some obcure mob it is pals with somewhere in Asia would put up the startling sum of $50 million to drill 14 impossible holes. That doesn't look like very savvy knowledge of the oil business to me.
As for "expanding" into Africa it is not possible to expand a big fat zero and that is just another one of Bendall's attempted distractions. The hype about using the famed GTL technology (which Empire does not hold the rights to) to ginger up oil production from undiscovered oil fields on non-existent tenements that have not been drilled with 10% of the imaginary profits going to the Ugandan people (assuming they were ever to make it past the guys running the country) ought to be sufficient clue as to how much nonsense that is.
Think about it.
Speaking of the weather it's mid-summer in Tasmania and excellent drilling conditions but there is still no drill rig at Bellevue. The way it's looking we will soon need to start talking about drilling in autumn. Tasmanian autumn is okay too so there is nothing to worry about.
Uganda being on the equator we won't need to be concerned about seasons when we start drilling there.
Malcolm's revealing the GTL patent technology in the PR has no relevance at this time to grass roots exploration in East Africa. He might just as well have added an intention to build a refinery to handle all the anticipated oil production (flowing with impressive speed down the pipelines due to its lowered viscosity) as is planned in Tasmania for the 5.5 million bbl/year jet fuel production from future discoveries there, and why not throw in a petrochemical plant as well to produce plastics, fertilizer etc. Hell, by producing electricity from an oil-fired plant (or maybe come across some geothermal heat source while exploring for the oil - that shouldn't be too difficult in the Rift Valley) we could even build a magnesium smelter like the one he once planned in northern Tasmania.
I've got the feeling Empire could soon be acquiring African GTL rights from Malcolm for the price of another big share placement to him.
Empire Energy had previously reported that it was intending to seek funding of $50 million through obtaining a joint venture with the mysterious NBD Partners. Okay, we already know that and it was duly reported in an 8-K. Now, the next material event would be a signed Joint Venture and it is clear they don't yet have that or they would have clearly said so (or rather shouted it) in unambiguous terms. It would not be merely a throwaway line squeezed between some new frolic in East Africa and a wholly irrelevant disquisition on flare gas technology to be applied to as yet to be drilled for and undiscovered oil deposits for which Empire does not even hold the African GTL technology rights (what a great material event that one is!).
Do you really think the SEC would waste its valuable time chasing up Empire's so-called material events to ascertain just how material they really are?
It should not be forgotten that Empire first advised on 3 June 2011 that a 49% interest in the Tasmanian oil project had been "sold" and it is now nearly six weeks since it became instead oops, change of plan, we are now off to an undisclosed Asian destination to ask some crowd no one has ever heard of to hand over $50 million in order to (somewhat incredibly) drill 14 wells in no more than 4 months.
Six week gone and they are still trying to get the Partners to sign on the bottom line. I am going to go out on a limb here and say I don't believe there will be any joint venture (and certainly not one funded to the tune of $50 million) and the whole thing is just more of Malcolm's hot air of which there are vastly more reserves than there are discovered cubic feet of natural gas in Tasmania.
While on the subject of disclosing material financial events if it is good enough to notify the stockholders and SEC of pending negotiations to obtain the latest ginormous funding package then surely it should also be good enough to notify when they fall through. Never happens.
I dismissed the header of the EEGC PR of 10 Jan ("Empire and its new JV partner NBD Partners moves to bid on Ugandan East African Rift Valley oil and gas licenses, through its new UK subsidiary East African Oil Company Limited") as not having any real worth just as I don't place much faith in the headlines of tabloid newspapers.
The lesson of the title of the 9 July 1010 PR is a case in point ("Financing Progresses, Sure Fund Issues up to USD$180 Million in Principally Protected Notes in Favor of Empire's 12 Hole Drilling Program") when on reading the body of the PR it was clear that Sure Capital had done no such thing.
The body of the Empire Energy East Africa PR is almost incomprehensible but from what can be made out it appears to contradict the headline. There is no firm and unequivocal statement that a Joint Venture exists with NBD Partners whoever they might be (nobody knows where they are located and how they can be contacted). In any case "agreement to enter into terms" for a Joint Venture re. the Tasmanian project can hardly be considered to be a signed, sealed and delivered JV, and furthermore what it could have to do with some separate East African frolic (which is what the header is about) is quite opaque to say the least.
Any offers of help to further interpret the PR are politely declined as they could only have the undesirable effect of further muddying the water.
The Category minerals system which applies in Tasmania (and to the other States) is no threat to sovereign risk and your opinion is out of step with the State's Mineral Resources Development Act.
The addition of a new zero barrels oil reserve to the existing zero barrels oil reserve gives a grand total of zero barrels of oil.
A couple of years ago EEGC was in no man's land after the expiry of the SEL and before the granting of the new EL and the share price was not between .15 and .20. The .07 share offer to existing holders was announced near the end of 2008 which had the effect of bringing the price back from around .12 to .07 or a bit less.
The EEGC (cum GSLM) share price has never responded to fluctuations of the oil price.
Malcolm has boasted of having more moves than a Swiss watch. The only problem with that comparison is Swiss watches are extremely reliable and produce near-perfect outcomes.
Very interesting. Malcolm's using the term "moves" nicely.
You kinda get that way conversing with attorney's [sic] ...
How on earth does TXO read into Empire's PR that NBD Partners is Empire's "new JV partner"? Empire itself does not make the claim. There has been no formally announced JV and imaginary JVs of the Smart Win variety are a complete fiction.
US-based Empire Energy Corporation International and its new JV partner NBD Partners moves to bid on Ugandan East African Rift Valley oil and gas licenses, through its newly acquired UK subsidiary East African Oil Company.
From the EEGC PR:
The potential application of Gas to Liquids technology to this new discovery within the Ugandan field ....
Quite apart from the fact that there is as yet no tenement, no drilling and no oil discovery one is puzzled why Empire would be talking of applying the apparently undeveloped (previously said to take $300 million to develop and commercialize) gas to liquids technology when it does not hold the African rights to it (holds only the North and South American rights we have been informed).
There exists no such report.
Reported on the TXO board in London,
"Fully funded for 14 wells.....................and lots lots more."