If Fermat #1 actually hits the 1.1 Bcf of gas that EPR and Beach think is the target EPR wouldn’t have any difficulty raising the cash; and they have 45 days to get set!
One farm-in coy could be Cooper Energy for example.
Listen to Mike Scott of Cooper Energy on Boardroom Radio heard by using the following website address:
http://www.brr.com.au/event/54504
Cooper have recently picked up acreage in the Otway Basin and are keen on the area's prospects; Scott also mentions that COE are looking at using their large cash reserves to buy into proven reserves that are cash flow positive or neutral.
It would not be prudent for Cooper to farm-in to Fermat -1 before the hole reaches total depth and the results are known; if the well is successful, I reckon they would be very interested especially as BPT is their known partner /operator in the highly prolific PEL 92 production area in the Cooper Basin.
I was nervous holding EPR until this mornings announcement as the 45 days to settle had not been announced, but now we, as shareholders, know that if the 1.1Bcf is proven then shareholders will benefit.
Management has put EPR in to a company making position without up front expenditure and still retaining 25%. WOW!
Tomorrow we should know the result.
EPR Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
