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it is clearly not a newspaper article. No newspaper article would be baldly presented in that form and with all those www links. There is no "probably" about it.
Has discovered Oil & Gas resources estimated at between $7-15 Billion
Over 1 Billion barrels of oil & 799 Billion cubic feet of Natural Gas.
That is a lie as there has been no such discovery. Futhermore the likelihood of commercial oil/gas being discovered by any future drilling is extremely small as calculated by an independent expert consultant.
At the end of 2010 Empire was all set up and ready to commence drilling when along came Smart Win International Ltd.
Incorrect for reasons that would be obvious to anyone who had investigated the actual sequence of events.
Empire's defence and countersuit has been independently funded
Funded in part (50%)
What of it? It's just a run-of-the-mill message board offering (by some poster with ID GoldenAuras) that has nothing at all to do with The Mercury newspaper.
There is no such article that you state there to be in last Friday's Mercury newspaper. Your post is misleading in the extreme.
kev I've been watching this shambles of an outfit for some time (not as a shareholder). It looks like the boys and girls are too dejected to raise a Christmas/New Year greeting. They were warned often enough but same old story - anyone who wanted to talk sense was shouted down.
1st of January 2012 and now the countdown starts in earnest.
Hey guys, where's all the joyous Christmas and New Year spirit got to? I've seen livelier graveyards.
Don't mention it Batting. It is we who are indebted to you for your wonderful post. Superlatives adequate to describe it almost fail me. It is so good to go into the New Year with a full sail and a full head of steam showing what Empire is really made of and the successes our dear leader will indubitably achieve and the limitless prosperity that is soon to be showered upon us who have stuck with it through thick and thin.
What a very fine post indeed, Batting! It must have taken a great deal of exhausting burning of the midnight oil selecting what to copy and paste and then to unerringly reassemble it all.
You go into the New Year with the cheers and undying thanks ringing in your ears of all the grateful true believers in EEGC's drilling, gas to liquid, FASER technology, Board members and medical waste.
I was only a little disappointed that you didn't take the opportunity to include mention of the Bose-Einstein condensate machine that powers the FASER and the unsolicited submission to the US Navy re. the 5.5M bbl/year of jet fuel, also the impending reappointment of Mr Villareal even though he apparently has not yet accepted (perhaps new private business pressures have arisen?).
However, in the interests of accurately reproducing the texts you worked on it was good to see you let the "FORTURE 150 manufacturer" stand without emendment in its original glory, and it was well to omit reference to the $53 million oil revenues we didn't quite achieve this year.
Once again an effusive "Well done, Batting!" to you.
The meaning of your "quiver" metaphor is lost on me so perhaps you could make the point more transparent. (I do, however, pick up on the clever word play on the name Smart Win which you helpfully highlight in upper case.)
Malcolm is SMARTLY keeping MRT out of the fray but legitimately in his quiver if need be.
Neither. The "they" clearly refers to the aforementioned Empire/Bendall and your two speculated alternative possibilities would make no sense. I suggest you re-read the message with this explanation in mind and I can provide further assistance as to the meaning if you are still unsure.
Really? Then I would be grateful to you for your explanation of the amounts of the loss of profits and diminished share price components of the total $1.1 billion damages counterclaim and how you arrived at them. While you are about it perhaps you would provide your complete breakdown of the $1.1B which you are so sure does not represent the "asset" value of the lost ground, in order that we might eventually learn who was correct and who was talking through his hat.
Imponderable?
How can that be when I just pondered it?
It can't be categorically stated there is no oil, however, the chance of success of the structures Empire intends drilling (if it ever obtains the funds and a drill) for discovering commercial oil is extremely small.
Some very wild chance of success figures one sometimes read are completely off the planet. The 65% figure that is conjured up out of thin air in the final report on SEL 13/1998 is completely delusional and one reason why Empire's credibility is so low.
Not at all, it goes to the heart of the matter. If as seems very likely Empire's counterclaim is for the "asset" value of the lost ground then I am pointing out that they are on the wrong train and they are overall wasting their time. Even if it were found that Smart Win had breached the contract the damages claimed by Empire bear no relation at all to that breach and are not attributable to Smart Win. A nominal damages award of $1 would be appropriate.
Again, your post is tangential to the real issue. You point to mere denials or admissions that are superfluous, trifle, of small detail and have no value to the fact that Empire was performing when SmartWin failed to pay the money and thus causing a breach w/o notice of any default to Empire until 9 mos. after SmartWin breached. That is what all of what your sweet minuscia will be boiled down to. In fact, the judge has allready laid it out as such. Therefore, in my opinion, there is no way -no matter how many attorney bills they pay subsequently- that SmartWin will overcome that error.
And another reason Smart Win cannot be held responsible for the exclusion of the $1.1 billion "asset" is that Malcolm himself said several times he believed Empire had fulfilled all the conditions required for the new exploration licence e.g. in PR dated 25 September 2009:
Empire believes its past performance of meeting or exceeding the work requirements of SEL 13/98 should automatically qualify it to meet the requirement of the new license. The application is for the entire acreage included in the current Special Exploration License 13/98 (approximately 15,000 sq. km.) where Empire intends to resume its planned drilling program on the identified structures in the Tasmanian Basin
By his own words his quarrel must be with MRT and not Smart Win.
Do you have any substantiation that Empire is seeking damages in its counterclaim for the items you name? I don't see it because if included they would put the neat $1.1 billion figure out of whack and there would be no rhyme nor reason to it.
The items loss of income and PPS would be next to impossible to assign a plausible value to - they are imponderable ifs and buts.
But you forgot a few things like cost of the float, Hunt, loss of income, PPS, etc.
Mr Batista Esq. can assert all he likes but how is he going to establish to the court's satisfaction it was Smart Win's declining to complete the loan that was the reason (direct or even indirect) for MRT granting only a reduced area exploration licence? He could try to subpoena the Director of MRT and the Minister for Resources to give evidence but I say good luck with that.
I have already given you a perfectly good (indeed probable) alternative reason that would explain MRT's action which does not involve Smart Win. Malcolm has form with MRT, lots of it, and from well before Smart Win appeared on the scene.
And that is before we even get to considering how the lost ground can possibly be valued at $1.1 billion.
Nope, no more than 5 minutes work for the court I'd say. I only hope the judge doesn't have a stroke from laughing too hard and the matter has to be held over indefinitely.
You see it's no magic, make believe or by using pixie dust for Empire's attorney to assert that the exclusion of the bulk of the tenement and rights of the seismic discoveries thereof was a direct result of SmartWin not performing. Dinkidoo or not, it has nothing to do with make believe but has everything to do with the potential, yes potential of the real fixed asset that Empire spent over 50 million developing.
If there isn't something firm come out by the end of this week on the Asian expedition it's going to start looking rather grim.
re. point 4. Smart Win had no influence on the granting of the reduced area EL 14/2009 which was solely at the discretion of MRT
MRT is not bound to disclose and justify its reasons and as far as I know it did not do so (officially at any rate) on this occasion. It may well have had doubts over GSLM's ability to fund its proposed exploration program (Bendall's underwriting of the rights offering with his $50 million personal line of credit) which as it turned out proved to be well founded.
It's a very long bow to draw to hold Smart Win responsible for the exclusion of the $1.1 billion paper "asset" from EL 14/2009 when Malcolm has already given the game away there with his threat to sue the Tasmanian Government if MRT does not reinstate the lost structures per his Magistrates Court appeal (which has gone very quiet - whatever happened to THAT?).
Mr Batista Esq. has his work cut out with this one.
Two particularly interesting points in Smart Win's 'Reply to Counterclaims' (link posted by pitts77h):
4. Denies the allegations that Smart Win committed illegal or wrongful acts resulting in GSLM holding an explration license of reduced scale and denies knowledge or information sufficient to admit or deny the remaining allegations contained in paragraph 31 of the Complaint.
and
13. Admits that pursuant to the written agreement between the parties that Empire Energy was required to follow a written budget and denies the remaining allegations contained in paragraph 40 of the Complaint.
Point 4 would appear to be consistent with damages sought from Smart Win of $1.1 billion representing the "asset" value of the structures excluded from the EL 14/2009 grant.
Point 13 notes that following of written budget requirements was required under the Agreement.
(Most of Smart Win's points cannot be fully comprehended without having the counterclaim text as a guide)
No stretch involved, it's simple arithmetic:
Resource "asset" stated by Empire for SEL 13/1998 was $3.3 billion
Resource "asset" stated by Empire for EL 14/2009 is $2.2 billion
Therefore resource "asset" lost by Empire on the granting of EL 14/2009 was $3.3B - $2.2B = $1.1B which (surprise, surprise) is exactly the same amount as the damages sought in Empire's counterclaim.
Simple huh? You can easily confirm the licence "asset" figures from PRs and reports (I don't intend doing all the leg work for you.)
Ask yourself why Empire's counterclaim is for a precise $1.1 billion and not a round $1 billion. Dare I say it's kind of obvious?
I repeat, it will be something wonderful to see how Empire argues that Smart Win was responsible for the $1.1 billion "asset" exclusion, and even moreso how a make-believe "asset" is also a genuine dinki-di fixed asset (without the inverted commas). If I were the judge I'd be asking to take a look at Empire's Balance Sheet.
How can the damages be deemed factual before all the evidence is heard? At best there is a prima facie case (it's great fun demonstrating our legal expertise isn't it?).
The $1.1 billion damages sought refers to the supposed value of the 12 or so structures that were excluded by MRT in granting EL 14/2009. It will be fascinating to learn how Smart Win can be held responsible for that (let alone how it is known they were worth $1.1 billion).
After all, the Empire is seeking over a billion dollars in damages which are deemed factual before the court, you know.
As you say you are in possession of facts that others don't have perhaps you would be so good as to inform us all why Smart Win declined to complete the loan after performing its audit.
I would point out that if Malcolm persisted for 9 months in trying to persuade Smart Win to part with the outstanding $1.1 million he must be very slow on the uptake, especially as there would have been no hope of funding the completion of the Bellevue well even with it. He chose to allow the Hunt rig to be set up and stand idle for several months after learning that Smart Win had turned off the money tap.
The Smart Win vs Empire Energy and Malcolm Bendall action was filed on 9 Septmber 2010 and Empire/Bendall subsequently responded with a counterclaim in that action. Smart Win lost a motion to dismiss the counterclaim.
There is a also a second and separate action that was filed by Empire on 30 August 2011 (PR of 6 September):
On August 30, 2011, Empire Energy Corporation International filed an action in the United States District Court for the Southern District of New York against Noble Trenham, Diane Lawton, Smart Win International, LLC, and others alleging violations of the federal securities laws. More specifically, the defendants are alleged to have violated the proxy solicitation and tender offer laws and regulations under the Securities Exchange Act of 1934. The action seeks injunctive relief enjoining the defendants from attempting to seize control of Empire and remove its management through illegal proxy solicitations and offers to purchase Empire securities. In addition to injunctive relief, the action seeks in excess of $1 billion in damages.
In view of the several unrelated defendants to this action - including Smart Win - it could be described as Malcolm's conspiracy theory strike.
I make it that Empire stands to win several billion dollars if successful in the two actions (let's hope Smart Win has deep pockets!) plus the prospective multibillion dollar action foreshadowed against the Tasmanian Government. Who needs the bother of exploring for oil when this sort of dough is there for the taking?
Even if Empire does eventually win its counterclaim against Smart Win (it has not done so yet and according to the court schedule there will not be a decision for some time) it is no foregone conclusion that they will have won the equivalent of Spain's El Gordo lottery. A damages award can start from a derisory $1 such as when there has been found to be only a trivial technical breach of a contract.
EEGC took Smart winn to court and won and they are on the hook for an enormous penalty.
It's summer in Tasmania, no snow and good drilling weather. But where's the drill?
The 10-Q was signed on 30 November 2010 so it would be a certainty that Empire must have known of Smart Win's court action two and a half months after it was filed. It's yet another instance of Empire forgetting to mention bad/unfavorable news.
That must be really hot off the press since Empire said very recently in its 6 December PR:
we believe our legal counsel, Paul Batista Esq. (New York) has now gained the legal advantage for Empire and is counter suing for significant damages of over $1 Billion
So it should be no problem for you to provide a link by way of verification.
EEGC filed a counter claim and won.
It is interesting, curious even, that the 10-Q for the Quarter ended 30 September 2010 makes no mention of the filing of the Smart Win action on 9/9/2010. See p15:
PART II—OTHER INFORMATION
Item 1.
Legal Proceedings.
See our 2009 Form 10-K for a description of current legal matters. There has been no substantial change since the Form 10-K was filed.
That is at odds with the fact that the very significant action by Smart Win against Empire was lodged during the Quarter.
There is a strong smell of stinking fish.
Hi jersey (we can all play the game).
None of those three points you make are true. Read pitts77h again, more slowly this time. It's 21743 you want (not 2743).
That's news to me. Some $10-12 million would be needed to drill Bellevue and Thunderbolt. Are you saying that Empire has obtained those funds but not disclosed the fact?
EEGC doesn't need that money to do the initial drilling
It is not true that Empire has won its counterclaim against Smart Win. The court hearing is still in progress and there has been no outcome. If you continue to maintain it is so then please provide substantiation.
EEGC took Smart winn to court and won and they are on the hook for an enormous penalty.
As Malcolm Bendall is on the public record (several times) relating his vision it is entirely reasonable and legitimate to question the usefulness of his hallucination in oil exploration.
The details of the "vision" have varied with several of the tellings.
There was every intention to drill test wells as long ago as 2006 so that your statement is erroneous that there was a deliberate plan to confine exploration to seismic surveying.
From Empire Energy PR dated 15 November 2006:
Empire/GSLM had planned to commence drilling in August of 2006, however delays in the issuance of the necessary licenses by the Australian Government as well as delay in shipment of the drill rig have caused the schedule to be moved back. We now have identified and obtained the necessary licenses for a number of sites and plan to begin drilling in early 2007.
The money was used to do seismic research. In the early years there was no intent to drill a well to bring up oil only to develop the sites.
The boys with their begging bowl flew to Asia last week and there has only been silence since then. Either the abacus is working overtime or it's another funding dead end. TXO and EEGC shareprices would indicate nothing has developed.
Extract from Letter to Investors dated 12 July 2002 from Malcolm Bendall, Chairman of Great South Land Minerals included in the Offer Information Statement - Offer of up to 5,000,000 ordinary shares at an issue price of $1.00 per share:
"GSLM and its predecessor companies were set up as a result of a vision I received from God in 1977. In this vision I saw large structures, onshore Tasmania, filled with oil and gas. At the time the scientific community and Government departments had ruled out any chance of finding hydrocarbons onshore Tasmania."
It's not OK. Swimming a wide and raging river has nothing to do with it. This is about oil exploration not a John Wayne movie.
What product development? There is no product. This is an oil exploration company that has yet to find any product. It is not some manufacturing company that is looking to sell more and better widgets.
Before Empire can even look for "product" it needs to find the big funding it has been seeking but unable to obtain for years.
Do you have a link to Al Sehsuvaroglu's report in which he is supposed to have rated the oil prospectivity of Tasmania so highly? It would make for an interesting comparison with the RPS Energy report.
The TXO press release does not say anything at all about capacity of TXO to invest in Empire Energy. That is a complete fabrication in Empire's 8-K
Or on the other hand it might not be the truth.