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EME, SOU, CAB, NTOG, UPL, BOIL and RBD

Empyrean Energy (EME) announced today that Dempsey production testing is to resume.  This "trillion cubic feet of gas" prospect previously turned out to be a huge disappointment, particularly after all the "significant gas shows" RNS announcements pumped the share price up to over 30p.

A word of warning, virtually every oil and/or gas well I have been involved in has seen gas shows, some "significant", even when the end result was a "dry hole".  This is simply because the locations being drilled are considered prospective due to the presence of hydrocarbon charged source rocks and potential reservoirs.  A "significant gas show" sounds great, but means little and cynics might say it is only announced to boost the share price.  Remember, Sound Energy (SOU)'s "50 million Euro" Badile well had "significant gas shows" very shortly before being declared "non commercial".

Cabot Energy (CAB) (the old Northern Petroleum) announced a drilling operations update today.  These Canadian drilling / work over operations seem to have been going on for ages now.  It's making itself appear as a sort of upmarket Nostra Terra Oil & Gas (NTOG) though, where apparent results never actually transform into cash for shareholders.  Having said that, CAB does have some very promising Italian permits, but this focus on Canada (with zero synergy) results in no value being accorded to these potentially transformational assets.  

On a more positive note, Upland Resources (UPL) today announced a £3.5 million convertible loan note commitment.  This is not potentially "death spiral" financing since, unusually for a small London Stock Exchange company, any UPL shares issued in repayment of the loan notes are subject to a six-month lock in period, during which time they may not be sold or traded.  UPL is a partner in the forthcoming Wick well along with Baron Oil (BOIL) and Corallian (Reabold Resources (RBD)'s portfolio company).

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The author holds one or more investments in one or more of the companies mentioned so this post cannot be viewed as independent research.  This post does not constitute investment advice or a recommendation to buy or sell and may be incorrect or outdated.

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