Carpentaria - 1 well Beetaloo Basin
Spudded 23rd EP187. Targeting Velkerri and Kyalla unconventional shales . BEPR 2.4 trillion cubic feet gas equivalent. 40 days to complete. Designed for suspension re-entry. Frac flow testing Q2 2021. Board have put their own money in. Currently 31 / 32.5cps - small turnovers - anticipation high. Would be of interest in periods of market weakness which will probably happen in seasonal downer October and as USA Presidential election develops. What assessments do posters have ?
Today is fifteenth day of Carpentaria 1 drill. No reports of drill progress released by company so far. Total depth goal is 2900 metres. Anticipated 40 days to drill to TD. Calculated average daily drill is 72.5 metres. At end of today calculated average drill depth achieved is 1087.5 metres. Thats 37.5 % of total anticipated depth. Drilling reality is it goes slower or faster in response to conditions. Depth drilled to end of today may vary from calculated average. Company is very good at marketing its prospects but does not have same keeness of vision with sharehoders perspective. A drill progress report only after total depth is reached is insufficient and untimely.
Need weekly reports beginning either Friday or Monday.
Company has not put out drilling reports. In absence of delays today is day 16 drilling. Average daily drill over anticipated 40 day drill to T.D. 2900 metres is 72.5 metres. Depth of drill to end of today is calculated 16 X 72.5 giving 1160 metres. Thats 40 % of T.D. What horizons have been encountered ? How do horizons and depth compare with interpreted seismic ? Shareholders would like to know. Will company relent and release weekly drill report Friday / Monday ? Investor good will serves future relations.
Does absence of drill progress updates by company imply everything is proceeding without disruptions ? At end of today - day 17 of drilling - theoretical drill depth is ( 17 days X 72.5 averaged daily drill ) 1232.5 metres. Thats 42.5 % of planned T.D. What are impediments to providing weekly drill progress updates ? Company exploring investors ,with capital at risk here , point of view and informing them would earn goodwill. Always wise to facilitate goodwill for future situations.
I have been on EEG since they were Imperial Resources. They did well in the USA, and they show great promise in the Beetaloo. They have never responded to panicked shareholders demanding information. Bluebayou, your comments here are exactly the same as another panicked shareholder on Hot Copper's EEG threads. Word-for-word. Take a chill pill....none of your bleating will change anything. If you are that worried, sell. For what it's worth, EEG will have a spike when the drill hole tells us what we expect to find, i.e. it is frackable. The real excitement will not start until the onset of next year's Dry Season, when the well is actually fracked.
Best to all holders
In absence of on the ground drill progress reports theoretical calculations are made. Kyalla oil horizon is located at 1400 metres. Averaged drill calculations indicate Kyalla should be encountered end of Sunday / beginning Monday. That takes drilling then to 48.27585 % of planned T.D. Then another 21 days to T.D.
1st drill update here. Fantastic result. Congratulations EEG. Keep updates coming.
Bluebayou....the announcement today was nice and caused a predictable spike...but try to keep the long game in mind instead of cheering incremental bits of news that cause temporary SP rises and bring you emotional relief.
How much of the history to this play do you know? Do you remember, for example, when Aubrey McLendon (the founder of Chesapeake Oil in the USA), came out here a few years ago to inspect the flared well that EEG first discovered 20 odd years ago? Do you remember that he was going to commit M$100 plus to a JV with EEG? Do you remember why? Because he reckoned it was the best fracking well he had ever seen! The fact that he then suicided because he was a sexual deviant on his way to trial and gaol is neither here nor there re his judgement of the field's potential. From a commercial perspective, his death simply delayed the discovery of the potential of EEG's holding (which is now commencing and we all as holders hope is vast).
If you can contain your excitement and short term frothiness, the rest of this financial year is likely to make today's spike look minor...and for what it's worth, I suggest you hold onto this one for a few years.
Best to all holders
Just concluded webcast was mixed experience. Lots of background information for " new investors " and very brief presentation comment / discussion about Carpentaria 1 drill progress to date. Questions from analysts elicited useful further information. Company anticipates next announcement will follow receipt of lab test results end Q4 2020 or Q1 2021. Company says it is to early to make predictions and highest level of confidence about things follows flow test results interpretation. N.T. " wet " ends April 2021 so thats when frac / flow test / analytics progress. Also said it is to early in Basin exploration to identify " sweet spots ". About company other prospects - focus is on EP 187 and Mcarthur Basin huge potential publicly unknown / undiscussed because EEG " control vast majority of it and haven't done anything with it yet. " Rig remains on site while further work done. Quarterly report and AGM are coming up so presumably there will be more comment by company before end 2020 / Q1 2021 ?
Bluebayou....sounds like you were given a bit of sober commentary. I am guessing you are a 'new investor' on THIS COMPANY although not necessarily a new investor per se....so apologies re my tone if you're not...but I reckon if you are you should go to EEG's website and read the last 5 years' (minimum) annual reports plus associated releases that you find worth investigating. The Annual Reports will point you in all sorts of directions. Remember, when this company was Imperial Resources they were operating in the USA and have first hand experience in fracking. That's why they can speak sensibly about comparisons between Beetaloo and the various Shales in the USA. They actually have a large, stranded asset in the state of New York that they could exploit, if Governor Andrew Cuomo hadn't banned fracking abut 5 years ago! Hopefully he'll get voted out over his handling of Covid and a fracking sympathetic governor will replace him.
Best of luck with this one and nay others you have!
PS...I am jest a cranky auld bugger with a fondness for this stock...it's my fourth bite at the cherry and all have been delicious.
A governance issue arises from todays Carpentaria-1 drill results announcement. Company has referred in previous materials of its expectation that valuable Kyalla horizon would be at 1400 metres. Investor expectations were raised by this information and informed their decisions. EEG did not find Kyalla at 1400 metres and continued drilling without advising Market. Market was not kept informed. ASX should bring its expertise in tutoring EEG in its obligations in timely announcements - weekly updates would have addressed this risk but none were made.
It will be interesting to see when the profit-taking ceases. My gut is this will stay under 40 cents for the next 6-7 months and may even fall back under the option exercise price (30 cents) depending on when The Wet finishes. Given its an El Nino, perhaps April or May before everything is dry enough to go back to work and then a couple of months flow-testing the vertical well and then actually fracking.
Patience is a virtue!
Best to holders
N.T.Times writes up Carpentari-1 outcome this morning.
Several media articles published after Carpentaria-1 results on EEG website.
Energy and Emissions Reduction Minister Angus Taylor in Darwin on way to Empire Carpentaria-1 well. While there talking to N.T. minister about joint Federal N.T. government industry action plan. Beetaloo first Basin to be targeted by Federal Basin development strategy. Article in N.T.news.
Latest information. Angus Taylor visiting Empire Energy Group Carpentaria-1 today. Behind the scenes Federal Government action ongoing.