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12.0¢ empire oil & gas nl

With Metagasco sitting on $25M and no permits to drill into and...

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healyn

5,453 Posts.

21

04/11/15

08:55

Post #: 16320151
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Originally posted by healyn ↑

ERM's other gas interest on the other side of the country Metagasco is rumoured to have its permits bought out by the NSW govt. Figures bandied about are $25M - $30M. ERM holds about 14% of Metagasco.
Not bad for getting out the gas business.

What I wonder is ERM doing about its stake here in the West?
It has installed one of its own directors as the chairman of Empire. It has a 19.9% stake in Empire's share register and Empire owes it approx $15m due to be paid by 31Aug16.
If it is not paid back by the due date have a guess who gets Empire , all of it. Then what will ERM do with Empire's bones? And what will we the shareholders get out of it?
Read what Empire says about the agreement on page 37 of the Annual Report ( second para from the bottom of the left column).

Whilst AWE and TSV are drilling holes and finding gas and have plans to supply gas into the DBNGP in volume.
AWE has spare capacity at their Dongara and Xyris plants both are already connected to the DBNGP. TSV also is not standing still.

And what is Empire doing? It is going to expand the RG plant by a measly 5TJ per day and only if the RGN-1 is a commercial success and that may not be known until sometime in the middle of next year.

Santos has already inked in a 5 year contract with 2 further 5 year options to supply Alcoa with a significant percentage of its gas requirements.
AWE will not be standing still and neither will TSV the latter has Alcoa as a large TSV investor in its own right and where will Alcoa be getting a large percentage the remainder of their gas needs from?

Meanwhile Empire is still trying to sell its 2Pj of excess gas capacity.
If Alcoa is looking for gas why hasn't it looked at Empire? I believe it wants a lot of gas for its future needs not a piddling 15Tj/day. Doesn't anybody want it?

This company is laying back waiting for someone to come to it. It is not out there promoting and selling what it has and what it is doing now and in the coming months. It is just sitting, dozing zzzzzzzzzzzz.
In the meantime the cross trades keep on happening.

Meanwhile a few very concerned people are working in the background on doing something about it.

Is it another conspiracy theory? Watch this space.

Expand

With Metagasco sitting on $25M and no permits to drill into and with ERM as a major shareholder with a 12.73% holding I wonder what it will be doing with it? There is no future in O&G exploration in NSW.

http://www.smh.com.au/nsw/nsw-gover...north-coast-gas-licences-20151101-gkodbr.html

Perhaps under the guiding hand of our "friends" it will be looking west at another of ERM's plays.

No trouble with anyone out there. Nice little gas plant, money coming in, plenty of land to explore, a friendly board. Same major shareholder. Easy pickings.

One does not have to think very hard to see what the 100:1 consolidation and what resolution 11 is about.

EGO Price at posting: 0.4¢ Sentiment: Hold Disclosure: Held
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With Metagasco sitting on $25M and no permits to drill into and...

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