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Hi Singa I agree lockyer has great promise, but i seem to...

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Allyoops2

924 Posts.

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25/05/16

14:17

Post #: 17863296
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Originally posted by Singa71 ↑

I have been doing some research about our current well situation we find ourselves in. This is my take on it as our board have gone very quiet and it doesn't look to be a good outcome for us. These are my concerns.

I maintain EGO are in a right pickle now. The drill rig should have never left this site. They will regret releasing the drill rig as this is why!

People might not understand to fix this well EGO need to apply again back to all the parties such as Environment, Safety, DMP, Landowner to get approvals in place and this is going to take months to achieve the approval process again. If landowner say's NO as they might be busy harvesting etc, the mess just get's bigger. This has to be treated as a new drill well again. I will cost us heaps.

If the rig was to remain on site this could have been fixed for around $200k, now the time and bill will exceed well over a million. EGO will have to pay for industry specialists experts to come in and fix, cost huge money unfortunately now.

They have to get funding again for this well, is it worth it. The well had heaps a oil and the gas was lower than what was expected from a simple well with "low risk of return", EGO said it was a relatively easy well, well it hasn't turned out this way, WHY??. I suspect now they will regret not doing Lockyer first as most tried to say to them to do first. Hindsite a wonderful thing. But we are in this situation now and have to deal with it.

The problem now is the plant only can produce 10TJ so is it worth going back to repair and absorb the huge costs associated? Maybe drill lockyer ASAP and come back to it later when we have cash. Where are we going to get money to drill? We do have money problems and how can EGO attract big investors when everyone knows CEO only has 3 weeks of salary in shares, Rachael only has 2 weeks salary in shares and Milton owns nothing, not sure if Brown owns any. Does this send an encouraging message to the market then alone attract serious people to the table. Surely the market isn't silly to invest while senior company reps hardly own shares and struggle to drill a well successfully especially when there were reasonable reserves, who made the mistakes and if it was management then would anyone want to work with them. We do need the answers of what exactly went wrong. I just hope it isn't human error.

That's one thing the old board did well they all had large holdings. They worked for the SP. Why hasn't our senior management done this. What does this message say to the market. Also the fall out of this well effects our debt situation. Of course ERM will extend they have no choice.

I maintain change has to and will happen. This change excites me and it should excite most of you. It's a sad state we are now in and our only hope is that someone comes in and sorts this company out once and for all.

Regarding Cap Raising can't see this happening soon as Garrat said is not a fan. ERM will not want to see this either as it only dilutes them even further sitting on big losses as well. They want out! So we are in a mess and I am confident change will happen in some form and that is why I will accumulate and wait for this to happen. We do have a positive future just not with this team unfortunately, they promised so much but delivered a 100% lost and now a problematic well. Garratt must not be happy along with ERM either. So it doesn't take a rocket scientists to come to these conclusions.

With regard to communications from our board well I maintain more silence to come as they have nothing positive to report. The communications regarding this well was the worst I have ever seen. They said too much without understanding the facts, in this case the mixed messages go forward then backwards. I expected more from serious senior managers. What we got was a lot of mixed reports and indecision. Surely that doesn't send a confident message to investors, holders and the market. Anyway happier days to come only a matter of time I hope.
GLTA.

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Hi Singa
I agree lockyer has great promise, but i seem to remember from ann after BS survey that 2d infill seismic was required prior to drilling. Does anyone have the same recollection or is it my age catching up with me?
Ally

EGO Price at posting: 31.0¢ Sentiment: None Disclosure: Held
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