Replies to post #18874 on Empire Energy Corporation Intl. (fka EEGC)

[roger wilco]

EEGC buys rolling in .02!

[EarnestDD]

Word of FAILURE TO PAY Hunt by EEGC spreads fast in the drilling world. I doubt very much that EEGC or GSLM can drill another well without prepaying the entire drilling costs, beginning to end.
jmo

GSLM has many rigs to choose from.

[BobSinCA]

Excellent comment -- since EEGC is apparently going shallow with this first attempt, perhaps they might even use the Spaulding rig??

There is risk in this 'shallow' strategy, if the most shallow pay zone is not there -- but at least it moves the ball forward, and would likely substantially reduce the cost of financing if commercial oil is found. I don't have sufficient knowledge of the geology of the various zones to evaluate the decision, but this feels like the right strategy.

However, previous comments about posters believing that GEFCO would be used because 'they didn't do their research' are inappropriate. Consider the 3 Sept PR as the only source of public information of which I'm aware (anybody have a different source?) (GEFCO added to the quote by me, in context of previous quote in the PR from GEFCO):

Once the (GEFCO) rig has completed construction and shipment, Empire’s drilling contractors have agreed to be mobilized to the Bellevue site by mid-November to embark on a summer (Australian summer, US winter) drilling program

Perhaps the non-GEFCO rig/go shallow decision is an early positive sign of new management - decision to use an existing rig for initial drilling rather than spend unavailable cash on a new rig, a strategy previously panned by several posters including myself (15653, etc.).

However, that does beg the question of availability of cash to mobilize the contractors. Perhaps Mr. Leach's investment company will 'front' some?

At the risk of spoiling the excitement, I would also observe that so far the market is underwhelmed with the announcement in terms of pps, as the company's market cap has gone up less than $600K at this writing. Likely it is waiting to actually see cash in the bank or a drill turning.

[oilsleuth]

It would be quite impossible for drilling to start in as little as 2 weeks. It's hard to see it even starting in November as foreshadowed in the latest PR. Where is the funding to pay for it? Patience is required (lots of it).

[rigman]

As usual Howard you are wrong. There is not one oil drilling rig currently available in Australia. Both the Hunt rigs and Century Rig 7 could be available to start mobilising around mid November. This would mean an early December start (at the earliest) for drilling. This assumes that Empire have the money NOW to pay the drilling contractors and other suppliers up front. If Empire were to use a Spaulding mineral rig they may be able to drill another few hundred meters but could not get to planned total depth.
There is nothing in the recent press release to suggest that Empire has any money and IMO drilling will not start this year.