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Link to Empire Article:
https://www.proactiveinvestors.co.uk/companies/news/1045237/empire-energy-completes-sale-of-us-oil-and-gas-assets-receives-us-5-9-million-upfront-payment-1045237.html
Empire’s managing director Alex Underwood said: "The Empire team is delighted to have successfully executed its US asset divestment program.
"Empire will be a pure-play Beetaloo/McArthur Basin-focused developer while retaining a free-carried interest in shale rights in the United States at little to no cost to shareholders.”
Full focus on Beetaloo Basin
He added: "In 2018, Empire was carrying US$38 million of debt against its US assets, supported by only US$4 million of EBITDA to service that debt. Empire sold its Kansas assets in 2019 which reduced the US debt, and this transaction results in full repayment of the US debt and return of over US$2 million in cash to support Empire’s Beetaloo-focused strategy.
"Empire can now focus its full attention on the development of the world-class Beetaloo Basin, which in the success case will provide the people of the Northern Territory with sorely needed energy security and employment, royalty income to the Northern Territory Government, deliver large volumes of gas into the chronically undersupplied Australian East Coast market, and provide energy security for the broader Asian region via LNG export.”
Thanks Dprussky, great to hear Empire calling out the success of the SSH1, and being genuinely stunned by how well it has performed with such a minimal rate of decline. Great to hear that the success of this well is being talked about in the US, our £1 could be a possibility! GLA.
Yes, I agree. The more things gear up towards production, the more expensive our 22.5% becomes, which is why the opt out was a smart move for Falcon, with the cards we hold, and we avoid diluting, or reducing our percentage.
I hope this won't be the case, but could POQ consider selling part of our acreage or sell individual blocks of 72,000 acres?
If so, the price per acre would be hefty, Aus is possibly the place most big companies would choose to be in the world at this moment!
Absolutely, it is good to see Philip is not afraid to use our opt out clause, it feels rather smug to sit here and wait for Tamboran to do the dirty work, proving up our resource for us... and without effectively reducing our overall percentage. I think we can now see the deal POQ made will benefit us all. GLA.
Thanks WW, good points, well made, I fully agree, its a smart move by POQ. The alternative would be unnecessary dilution with the cost, risk, and further weakened SP should the two 3km wells not go as hoped.
Good to hear from you Poods, your genuinely the only person on here where the old addage ' you can always buy cheaper' doesn't apply! I think POQ had made the right decision with the cards we hold, and this short term pain will benefit us all in next 12 to 18 months, if TAM can do it's bit! GLA.
POQ has chosen to avoid dilution of the stock, our share price is too weak to raise, so a successful pilot programme will still benefit FOGs selling. We can sit and wait for Tamboran to prove up for us, without further weakening our 22.5%. I see this as a positive, and likely sell in 12 to 18 months if the pilot goes as well as we hope. GLA
Too cloudy to view the flare on the Sentinal hub today, the last available picture was from 13th March:
https://apps.sentinel-hub.com/eo-browser/?zoom=16&lat=-16.84132&lng=133.65219&themeId=DEFAULT-THEME&visualizationUrl=https%3A%2F%2Fservices.sentinel-hub.com%2Fogc%2Fwms%2Fbd86bcc0-f318-402b-a145-015f85b9427e&datasetId=S2L2A&fromTime=2024-03-13T00%3A00%3A00.000Z&toTime=2024-03-13T23%3A59%3A59.999Z&layerId=6-SWIR&demSource3D=%22MAPZEN%22
Thanks WW for your explanation of the sole risk clause, that was a masterstroke by POQ, we can sit & do nothing while Tamboran heads towards production, which we hope will benefit our SP, with no costs to Falcon, apart from POQs salary.
If Tamboran have fulfilled the obligations for the carry, could POQ decide to let the two 3 km horizontals go ahead before raising funds to participate further, as our price is likely to move upwards after two successful 3km legs have been completed by Tamboran.
Yes, that was when Origin were testing the Kyalla formation, but It was mud rock and less suited to fracturing, Falcon's website reads:
Development of the lower Kyalla SRR, if viable, could have significant cost advantages over that of the middle Velkerri SRR due to expected lower drilling costs.
Mudgas and core analysis indicate the reservoir is likely to be wet gas which could also improve the economics considerably.
We are now back in the dry gas play whick is more suited to fracturing, but has a lower calorific value, and thus a slightly lower sale price.
Maggy Thatcher, Winston Churchill, Bobby Moore, we have got the results we hoped for, i wish you were here to see it.. Here are some recent quotes from some of our members:
POODS:
The geology is good. I'm here for the geology...
NEWTOFO:
Yesterday.. was the "right time to buy Falcon shares".
DERRIK:
Im sticking to my 30p prediction...
and infamously:
It's a Gusher!
GLA.