i mentioned this a few weeks back as one i would circle as a runner for next year, so, i've lashed out for a once only tip ! [email protected] is 3M.....around 960M SOI
low on cash so may need to raise soon, though the plan is to raise enough to keep the lights on until a JV deal can be progressed.
The prize is the Judith prospect, a gas prospect in Bass Strait, close to existing infrastructure and major gas players, who would now be starting to fret over continuity of supply to Victoria and the East Coast. The prospect has been confirmed as a gas field, but, the plan is to drill again, with updated research, in order to appraise the find, as well as go deeper, to explore and evaluate sands that run underneath, at greater depth.
There is speculation that neighbours are already eyeing it off, and, though nothing has been published, the value of the project is rumored to be several multiples of the current market capitalisation of EMP.
The (big) spanner in the works is the current boardroom stoush, were Carl Dumbrell is attempting to clean up the board before putting EMP out to the market. Carl is going by the book, but the opposing side, headed by Vaz Hovannesian, are resorting to desperate and grubby tactics to try for control. A recently announce meeting was quashed by the incoming directors, no doubt, when they got wind of the significant vote against them.
Carl is currently trying for a diplomatic solution.......failure of which, will no doubt lead to a section 249d. Drastic action, but it will be a killer blow, with Carl having the backing of an easy 40% of holders, possibly more, with him having the backing of around 14 of the top 20.
legal action is the big holdup to the company going forward, and is the wet blanket on the stock. Clearly a scenario that puts off a lot of punters, but research shows it is looking to be an easily determined, and low risk outcome. With the gunfight over, EMP will then be on show to those companies needing to acquire gas supply in the Strait. Success there, either as a JV, or outright sale, will be where the stock really gets traction.
The register was full of traders several months back, but now the T20, is dominated by those backing Carl, and most are willing to ride it through, and, possibly back it further.
EMP has all the ingredients of a play that i can get stuck into....
* low MC
*internal or corporate upheaval
*relatively liquid, though volatile
* directors and staff who are contactable, and happy to talk to shareholders (Carls side that is... i have no desire to speak with the other parties)
*good register
*knockout story with a real shot at a positive outcome
*somewhat high on the "HC negative sentiment index"
* plenty of opportunity to get set via on market, or potential capital raise, at a relatively low price
* (potential) multi bag move on positive outcome
*potential to rerate in a 3 to 6 month timeframe
I see it as low risk, others may see it as high risk, and an avoid, (as was WFE, this time last year)
*dyor*
(20min delay)