EGO's preliminary annual report is due on 29September. Its...

EGO's preliminary annual report is due on 29September. Its quarterly report is due on 30October. Somewhere in between or by these dates EGO's board will announce to the market these things:-

Potential Sale of the Red Gully Processing Facility As a means of raising capital, Empire is considering the possibility of selling the Red Gully Processing Plant to a third-party provider, with the joint venture paying a tolling fee for each gigajoule of gas and barrel of condensate processed through the facility. Empire will commence discussions with its EP 389/Red Gully Joint Venture partner ERM Gas to explore this possibility. Given the number of issues to be considered, any decision is likely to be at least six to twelve months away. It will also depend on the results of the Red Gully-1 B Sand production testing and independent reserve certification, which is not expected to occur until the last quarter of 2014. However, should it be possible to sell the facility to a third party provider, then this would have a number of benefits including:  releasing cash to Empire and ERM Gas and repay any outstanding balance to Alcoa at that time;  releasing cash to Empire and ERM Gas to fund accelerated drilling of the prospects previously identified in the Wannamal seismic survey, and/or conduct more seismic surveys on EP 389 to identify further prospects; and  potentially removing the need for Empire and ERM Gas to fund incremental plant upgrades, with the third party provider funding future upgrades and then entering into further tolling contracts with Empire and ERM Gas. This potential strategy of effectively recycling the capital which Empire currently has tied up in the Red Gully Processing Facility, and for which a significant amount has already been raised from its shareholders, could reduce the need over the next few years to raise capital from shareholders and/or the need to sell part of EP 389/Red Gully or other prospective tenement interests to fund its exploration and drilling program growth. Potential to raise Debt Funding once Red Gully-1 B Sands receive Independent Reserve Certification Empire will also examine whether there is the potential to raise debt against any Independent Reserve Certification secured for the Red Gully-1 B Sands. If both production and nominations by Alcoa continue at 8.0 TJ per day, with a 90% average plant run time, Empire expects that the Tranche 1 total gas quantity will be supplied by the end of September 2015. On this basis, Empire would then expect to be receiving cashflow for all gas supplied to Alcoa from approximately October, 2015. This cashflow would be relied upon to service debt as well as meet other expenses.

Then this is happening or going to happen during this quarter.

The activity in the September Quarter will focus on:  the implementation of some of the proposed improvements to the Red Gully Processing Facility;  the continued review of the Red Gully Facility, well operations and performance;  advancing the planning of the drilling of wells in EP 389/Red Gully and Black Arrow in EP 432, the planning of the acquisition of the North Erregulla Seismic Survey (EP 368/EP 426) and the possible reprocessing of seismic data on the Garibaldi prospect (EP 454);  the continued review and analysis of the production testing of the Red Gully-1 B Sands and engaging external consultants with a view to obtaining independent reserve certifications on the Red Gully-1 B Sands and Gingin West-1 wells;  advancing discussions with potential buyers of the Red Gully Processing Facility and potential debt financiers on any reserve certifications of the Red Gully wells;  the completion and lodgement of the 2013/14 Annual Report and preparation for the Annual General Meeting; and  the review, updating and enhancement of the Empire website.

From page 23 above from the June quarter report. Note, advancing discussions with potential buyers of the RG processing plant. Someone is interested in it. Furthermore if there was no possibility of debt financing there would be no advancing discussions with potential debt financiers.

The lack of announcements does not mean our board are sitting on their hands. Far from it I think, there is a lot plan and to carry out by 30September.

DYOR