Member Info for Jasper13

From 2 May 23 RNS - sales worth to EME $266m

Empyrean Energy plc (EME: AIM), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to provide an update on the Mako gas field development within the Duyung PSC ("Mako"), following information provided on 1 May in the quarterly report of Conrad Asia Energy Ltd, Operator of the Mako gas field ('Conrad").

Highlights

· Negotiation of key terms of the Mako gas sales agreement between a Singaporean buyer and the Indonesian regulator

(SKKMigas) are expected to be finalised during the second quarter, with Mako being a key strategic gas asset for both

countries.

· The Mako gas field is the largest undeveloped and fully appraised gas field in the West Natuna Basin. Gas is exported

from the basin by pipeline to Singapore. The competent person's report commissioned as part of Conrad's IPO late last

year estimated that Mako would generate gas sales of US$2.4 billion net to Conrad's 76.5% interest (~equivalent to

US$266m net to Empyrean).

· Conrad has engaged a global investment bank with a proven track record in similar transactions to lead a farm-down

process for the divestment of a portion of its interest in the Duyung Production Sharing Contract ("PSC"). Bids are

expected to be received during the second quarter and the industry response to date has been encouraging.

· Empyrean, which holds an 8.5% interest in the Duyung PSC, and through certain drag along/ tag along clauses that exist

in the Duyung Joint Operating Agreement will participate pro rata in the farm-down process. Empyrean has

communicated to Conrad and the global investment bank that it will also entertain bids for its entire 8.5% interest.

Market capital today at 0.50p - £6.4m. What is Mako really worth for them when a deal to sell licence is crystallised?

£10m, £15m , £20m???

I am going to hazard a guess and say it's worth a lot more than todays market capital of £6.4m. As a minimum double todays value and hence share price.

Comment from todays RNS:

"Whilst this has taken longer than anyone envisaged, we are delighted with the improved pricing formula for gas sales which should have positive implications for the Duyung PSC/ Mako sell-down efforts."

What will this have done to any take out price for the whole licence? Only a matter of time now until we know. At todays share price plenty of room for upside.

Yes and price is now 0.44p

Whilst never welcome by most, todays discounted placing has not had the normal drop to placing price. In fact on the contrary we are seeing buyers above the placing place. Whilst its been a slow burn on monetising Mako it does now appear that Conrad are moving towards final GSA signing and sell down of some of the licence. This will bode well for EME who will receive a cash injection to fund the drilling of Topaz.

100% confirmed testing is underway!

The next few months are going to be pivotal for the company.

Here is my stab at how future events may unfold.

1. Testing is underway and we are half way through a planned 14 day Phase 1 program. Certain folks have been made aware that testing is underway so no reason to doubt we have slippage on timeline. So w/c 12 Feb onwards we could potentially see some flow rate details.

2. Now prior to any market announcement ONHYM along with Afriquia Gas will want to verify the detail. Why? Because ONHYM have egg on their face regarding the Anchois debacle and I’m sure the Prime Minister with his involvement in Afriquia Gas will not want a repeat of Anchois. Predator after all are being very supportive with ONHYM and helping save face.

3. Assuming the Phase 1 zones tested flow above 1mmscfd an application for an exploitation concession will commence immediately. I’m fairly sure Predator will have been working behind the scenes to ensure all the leeway is in place for this to happen as smoothly as possible. So application submitted by end of first week March.

4. Phase 2 Sandjet testing to commence immediately after Phase 1. RNS already confirms this as early Feb through up early March and is planned to take 21 days. So, assuming Phase 1 finishes by 11 Feb (14 days from the 29 Jan), Phase 2 to commence w/c 12 Feb.

No one knows for sure exact dates/timings but the above gives an indication on what is known publicly. I suspect ONHYM will be controlling all the narrative and we won’t know about any leaks. Guercif is of monumental importance to Morocco and they won’t want a repeat of Anchois. February is going to get very interesting share price wise, and again through reputable sources we know institutions are buying.

Factual information.

Per last operational update - 1-3mmscfd per well could be deemed as commercial for CNG.

I have received confirmation today that the rod pump has been installed, as per previous posters. The well clean up continues. Company are stabilising flow rates and all is going to plan. There are no issues. Market will be updated in due course.

From a poster on ADVFN

“Rod pump has been installed, flowing well in line with expectations. Market announcement imminent.”

What if simultaneously to the MoU ratification there are also NDA's and exclusivity agreements in place with potential suitors, requiring details of any potential contractual obligations to sell gas? Sometimes we need to consider what is NOT being said, because for reasons of confidentiality it cant be.

PG has openly articulated and worded as such in RNS's that he would like to commence a Morrocan exit strategy and monetise the asset. He has also been very vocal about not needing to test to realise value, albeit we are led to believe testing is due to commence soon after the MoU is finalised.

In business, strategic directions change driven by various matters. Some you are in control of and others you are not.

None of us know really the exact detail of what's going on with Morroco currently, other than what is officially communicated via RNS. That's not to say other matters or strategy isn't in play.

Keith …you know my thinking is aligned. I also have a view that simultaneous to the MoU agreement awaiting ratification, that other conversations are taking place with a potential suitor/s. This would make sense as so far as any deal structure is concerned albeit creates further delays due to tri-part discussions. Plus add in final sanctioning from the ONHYM.

Whilst none of us like the ambiguity of news flow, change in direction/strategy and unforeseen or inevitable delays, the fact remains the gas is there, and going nowhere.

Probably explains some of the price action. As soon as it printed, bid changed.

I was notified by another poster of the vexatious and abuse comments being made towards me. I have no idea who ShortShifter is. And I certainly don’t have the time or inclination to post as two separate individuals.

Sausage ...et al...

Just for the record I am no longer invested in SYN (they are also aware of this). I am aware of certain individuals still posting vexatious and abusive messages about me, which both LSE and SYN are fully aware of. I am not the poster ShortShrift, which certain individuals seem to think I am. Perhaps ShortShrift you would also care to confirm that.

LSE are monitoring the comments being made on this board and will take the appropriate action should these continue.

I wish everyone well with their continued investment in the company.

Just thoughts. Who is to say that for a justifiable commercial reason that testing has been delayed. Perhaps instead the focus has moved to :

1. Focus on drilling MOU5 - location, permits, rig, etc

OR

2. Some form of M&A activity on the basis that the potential acquirer of all/or part of the licence has seen enough data to put money on the table.

Either way there is something of significance going on behind the scenes, hence the radio silence.

Coldspy...good to see you again. I am of the opinion we are going to have some good news soon. Do you share that sentiment?

Extract from the Reddit Sleeping Giant Post. Once again GRH calling this out and proving to be correct.

‘The proof is in the pudding:

There is more in his posts, and I only provided a few examples.

One last example... which I think is also very interesting and makes me wonder how much information/data he has in his desk drawers?

While I was posting the picture with a sandstone lens - above in Section 11: Net pay estimates, it reminded me of something.

Unfortunately, I don't have the time to search out the original post, but for curiosity & in general:

Early last year, PRD issued an RNS talking about what they believed could be a lens sand structure or something to that effect. It was spoken about after.

The seismic analysis returned that it would be isolated and sit separately/higher than the main lower body of sands - Not continuous.

GRH posted on the BB soon after that RNS.

He said he believed that the ‘lens’ structure was not separate.

Or another way- The sands from MOU-1 to MOU-4 would be continuous... i.e. connecting the two wells. I believe there were a few persistent posts.

The implications of this on the potential size and volume of the structure could be significant.

PRD then released an RNS after more seismic analysis had been done, which confirmed this to be the case.

Continuous lower sands. RNS below.

RNS-2021- JUL-19

"MOU-1 delivered a result that allowed us to de-risk the MOU-4 Target whilst unexpectedly validating the pre-drill seismic "bright spot", related to the presence of gas, as being attributable to the western limit of the MOU-4 Target and not an isolated target as previously interpreted above what was thought to be the pre-drill MOU-4 Target equivalent section.

Preliminary seismic re-correlation of the TGB-2 objective to the MOU-4 Target confirms that MOU-1 successfully proved up and substantially de-risked the MOU-4 Target."

I believe that result led to the company wanting to target MOU-4(2) asap.

On point, to put it mildly.’

Yesterdays RNS was very detailed, but was also more about joining dots. Statements/narrative were made that leads me to believe, that news is due that will feature M&A activity.

Quote that stood out....."to attract larger entities to assist in addressing future monetisation"👀

No mention of testing completion in Sept, as has been previously announced. Just reference to it being initiated and completed in 2023. Why? Have they enough data now to embark on a commercial transaction with another entity? Could structure a deal that is "subject to flow rates."

Are we going to see one more drill before testing to prove up even more volume and acreage?

Something tells me that behind the scenes activity is afoot. Just my opinion. Keen to hear others thoughts.