Empire's letter to shareholders & ops update - drill vertical and horizontal in EP 187 and frac two horizontals this year. Mentioned support from federal and NT governments.
https://www2.asx.com.au/markets/trade-our-cash-market/announcements.eeg
I recon production tubing on T-2H was installed back in April
is it just my old eyes or flare died?
https://apps.sentinel-hub.com/eo-browser/?zoom=17&lat=-16.39903&lng=134.70234&themeId=DEFAULT-THEME&visualizationUrl=https%3A%2F%2Fservices.sentinel-hub.com%2Fogc%2Fwms%2Fbd86bcc0-f318-402b-a145-015f85b9427e&datasetId=S2L2A&fromTime=2022-06-17T00%3A00%3A00.000Z&toTime=2022-06-17T23%3A59%3A59.999Z&layerId=6-SWIR&demSource3D=%22MAPZEN%22
my understanding is because EEG did a private placement at $0.22AUD with half warrant ($0.35AUD), they are offering the same deal (up to a cap) to all existing shareholders. I wish I knew about the deal.
@UncleBuk, I'm somewhere on the receiving line of these funds and although I'm a good value for money guy, operating in Oz is not cheap (doing it from within a large organization doesn't make it cheaper). Sorry, $44MM AUD won't buy you two wells IMO.
@UncleBuk why would he pay the premium instead of buying at the market? I understand the size and all, but still - FOG will need to raise pretty soon and it ain't coming at a premium.
Different capital market condition is my explanation.
Imperial O&G (Empire Group) raised 27.5MM AUD of which 7MM came from Sheffield.
Should be enough to drill and frac second well this year (more $$$ will come as existing shareholders are given an option to participate in 22 cents/share + 0.5 35 cent /warrant).
https://www2.asx.com.au/markets/trade-our-cash-market/announcements.eeg
Highlights:
• Commitments received from existing and new institutional and sophisticated investors for a strongly supported $27.5 million Placement
• Strategic investor Bryan Sheffield provided cornerstone support with a $7 million investment. Bryan was previously Chairman, CEO & Founder of Parsley Energy Inc., a major independent shale player in the Permian Basin, Texas
• Empire Directors have demonstrated their continuing support for the Company by committing to invest an additional $520,000 (subject to shareholder approval)
• A Share Purchase Plan to raise circa $2.5 million on the same terms as the Placement will be launched shortly to ensure all shareholders can participate
• The fracture stimulation and flow testing of Empire’s Carpentaria-2H well, which is fully funded from existing cash at bank, is expected to commence late this month
• Empire is now fully funded for the drilling, fracture stimulation and flow testing of the Carpentaria-3H well in EP187 in H2 2022 with all NT environmental approvals already in place
getting towards 50x.
Sorry NSW and VIC - but not sorry. Well deserved.
https://www.theguardian.com/australia-news/2022/jun/02/world-of-pain-warnings-of-gas-shortages-amid-soaring-power-prices-add-to-australias-energy-woes
@newtofo - word on a street SCD Rig 40 is undergoing modifications for Amungee program.
It is not in the news; all I can find is prior rig activity https://www.linkedin.com/posts/silver-city-drilling_well-done-to-all-the-rig40-team-for-another-activity-6877514900911087616-Ll4d.
Don't underestimate Origin, they have a good team and resources. Not the lowest cost operator but it is expensive to work in that part of the world (remoteness and lack of infrastructure/services) and "the government is here to help" (most frightening words).
BTW, Tamboran's EMP is very well done. They got a professional shop (AECOM) to do it.
Let's see how the battle of cowboys with cattle barons plays out.
drone photo here, last page https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02522570-2A1374444?access_token=83ff96335c2d45a094df02a206a39ff4
check update from May 18th. There was a drone photo of the lease with lots of sand stacked in a corner - it got replaced it seems. https://empireenergygroup.net/investors/announcements/
Frac ~end of June
Origin is highly competent - snatching the rig with the lowest cost to mobilize.
it doesn't seem the access battle is far from over - "Rallen is appealing the administrative tribunal's access orders in the NT Supreme Court in June."
Flare is the same or slightly bigger - good. Need press release to get an idea on rates/composition. It's a dry gas; no liquids there.
The last time Australia had a recession was 1991-92. Buckle up
Heat pumps still require electricity to run - it can be a problem in some states of Australia that went over its skis in the renewable energy transition while destroying coal generation. But that is not what important for the price of natural gas and the prospects of Beetaloo. The Asian LNG market is. I recon the appetite for any form of energy will persist.
Just add gas...
any insider knowledge on why EMP for Mavericks is "withdrawn"? is it conditional on land access?
https://depws.nt.gov.au/onshore-gas/environment-management-plan/emps-under-assessment
Report released, not overly promising. Rates declined; land access is far from certain.
Let's see whether the velocity string helped.
The Tanumbirini 2H (T2H) well averaged 1.7 million standard cubic feet per day (mmscfd) (2.6 mmscfd normalised for a 1,000-metre section) over an initial 83-days of flow testing. Rates have declined in-line with expectation.
• The Tanumbirini 3H (T3H) well averaged 1.5 mmscfd (2.5 mmscfd normalised for a 1,000-metre section) over 32-days prior to being shut-in for pressure build-up in mid-February 2022. Both the T2H and T3H wells are planned to have production tubing installed during the current quarter.
(Tubing likely installed in April)
Preparation of the calendar year 2022 2D seismic acquisition project covering ~90 kilometres continued to progress and is expected to commence during the current quarter. In addition, Tamboran continued to prepare for the spudding of the M1H well in mid-calendar year 2022, with activities subject to achieving land access.
Proceedings within the Northern Territory Civil and Administrative Tribunal (NTCAT) concerning land access at Tanumbirini and Beetaloo Stations took place during throughout the quarter. The NTCAT made an interim decision in Tamboran’s favour in respect of Tanumbirini and Beetaloo stations, which is the subject of an appeal application by the pastoral leaseholders in the NT Supreme Court.
Subject to the proceedings and a final decision by the NTCAT, Tamboran intends to carry out its planned activities as soon as possible following the grant of the access agreement in respect of EP 136 at Tanumbirini Station. A final decision regarding land access is expected to be delivered in late April / early May 2022 for Tanumbirini Station. Tribunal proceedings in relation to Beetaloo Station have been set down for hearing in late April 2022.
During the quarter, Tamboran spent $7.0 million ordering long-lead items in preparation for Tamboran’s calendar year 2022 Beetaloo drilling and seismic program.
(that's on top of $3.7M 25% share spent on T2/T3)
Activities https://www.investi.com.au/api/announcements/tbn/2266d438-ae4.pdf
Cash Flow https://www.investi.com.au/api/announcements/tbn/4919f9ae-b36.pdf
greenies are losing their **** over government grants (for 25% co-investment on new activities). ABC is heavily biased. Bruce Robertson works for IEEFA - check who is funding them. They have strong anti-fossil fuel agenda.
NT is already under Labor, led by Chief Minister the infamous Michael Gunner.
If there will be any changes - it'll be for the worst as Labor is aligned with Greens. They may repeal some of the infrastructure spending plans, although at this early stage it may not have a material impact.
The biggest help would be from relaxing the stranglehold of red and green tape but only minor parties (like Liberal Democrats) have it as a stated policy.