EGO (ASX) Gartman Oil Bear market Oil worthless commodity

Originally posted by healyn ↑

Ronny. EGO is not about oil. The condensate is a "by product" of the real revenue earner GAS. It has a contract that is sold at a contracted price. The condensate or light oil is sold to BP and is affected by the vagaries of the oil price, the gas sold is not affected in the slightest. Your mention of CVN and their SP problems is not ails EGO. EGO is right next to the DBNGP and is pumping gas to its market at Alcoa. CVN has nothing like that.
The revenue gained from the sales of condensate largely funds the salaries of the board. the contractors it employs and the wages of admin staff and other employees EGO employes from time to time.
Unfortunately EGO's gas reserves are decreasing rapidly due to water ingress at Red Gully. So more water is coming up the pipe with the gas and is also affecting the production of condensate which is directly related to the amount gas being recovered from RG.
RGN-1 was supposed to be a low risk gas well but has unfortunately for all of us has encountered significant water problems which may or may not ever be fixed. EGO's CEO is silent on this matter. Why, is anyone's guess.
Time is running out for EGO as it needs to find gas and quickly to market firstly to Alcoa and after the expiry of the contract to the Perth market. But it will be at a much lower price than it presently gets from Alcoa.
Time also is running out for the team at EGO. They have to produce the proverbial rabbit out of the hat or there will be a second strike against them.
However that said I imho I tend to think they themselves have already shot that rabbit and EGO is now bait for whomever out there has run the numbers on the company and it will not be good for shareholders I believe. I would like to be proven wrong in this respect and I really hope it will not come to that.

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Empire Gas & Oil Company Limited .
I have been really uncomfortable about the name of this company since I first was first sucked in. Maybe we have a competition for a name change and put it to the board at the AGM. The word I have been really uncomfortable with is the word Empire, not so much as the word Oil. I'll have a go.

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