IMP - Imperial Corporation

[prawn_86]

Re: IMP - Imperial One

I think these guys have potential, but they need to market themselves a lot better. Their website doesnt even include thier past anns, it refers you to the ASX site

What i would like to see from them is the following:

A statement as to what total flow rates from all their wells are
A statement about what exactly is hedge
What are their reserves figures

It wouldnt take much to put something like that out, presented in a neat readable fashion.

 

[oldblue]

Re: IMP - Imperial One

Hi kenny

I havn't seen anything re the interest rate on the new facility but we can be sure that it's plenty, considering the financier!
As an indication, the terms of the re-financing of the Bemax holding ( presumably now repaid after accepting the takeover) were:

- 8% interest pa
- plus 10% share of profit from sale from base price of 23c
(shares were takenover at 32c from memory).
- plus 45M options to the lenders at a strike price of 1c.

So all round, not cheap borrowing but that's what the market requires, presumably, for the degree of risk involved in this business by this particular borrower.

So not surprising that the market is exercising a good degree of caution.

 

[Mr Muzz]

Re: IMP - Imperial One

I have just been on the phone to the top in IMP.

Apparently it is not ANZ sell off due to the Shimea Broker ...because he tells me he has phoned ANZ to ask what is going on ...and they have told him they are not selling IMP shares.

He told me he is hot on the trail and trying to get to the bottom of this current round of selling.

He said ...as soon as he knows what is happening ...IMP will be making an announcement.

 

[kenny]

Re: IMP - Imperial One

Thanks Muzz,

Without details, it's getting hard to get a grip on what should be a straightforward stock to analyse.

Waiting.

Cheers,

Kenny

 

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Re: IMP - Imperial One

g'day mrmuzz. i still think its the beginning of a TAKEOVER.

what price will we accept people??? lol (im serious)

 

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Re: IMP - Imperial One

what makes imp such a desireable takeover candidate..?

* fundementally sound business
* undervalued
* low SP
* has gas producing wells
* has large acreage of productive leases yet to drill
* already connected to grid
* already pumping gas into the biggest gas marketplace in the world
* are to be part of the marcellus rush
* have their own drill rig and crew
* rig and crew already on the ground on leases
* have a great foothold in the USA market

anyone care to add..?

 

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Re: IMP - Imperial One

and another bullet point for the above list.. * imp is cashflow positive.

a typical TO target...sound like imp...?

For example, when making an acquisition, buyout firms typically invest only 35 percent of their own funds and borrow the rest according to Markman. So a takeover target must have a solid balance sheet and strong cash flows to support the added debt the investors will need to complete the buyout.

Markman says experts advise individual investors seeking takeover targets to concentrate on “small to medium-sized industrial manufacturers or service companies whose depressed shares are largely controlled by a single family or organization.”

 

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Re: IMP - Imperial One

with thanks to mrmuzz..

What makes IMP such a desireable takeover candidate..?

* fundementally sound business. Natural gas in Northeastern USA ...Recession/Depression proof business
* undervalued due to the mob on the Market not having noticed it ...probably because it is an Aussie Company ...but it is drilling "over there" and not "here"
* low SP due to someone playing ducks and drakes with the downselling short at the moment ...possibly with a view of discounting the takeover price of the shares ...when they go for it bigtime
* has gas producing wells ...140+ commercial wells ...60% hedged and 40% enjoying the recent $7 to $13+Mcf price sales rise
* has large acreage of productive leases yet to drill ...over 150 positive Pud sites identified for drilling
* already connected to grid in the biggest most profitable markets of Washington, New York, etc. Very low cost connnection to the grid due to massive close proximity of pipelines ...unlike the dangerously hairy sites in the Gulf of New Mexico
* already pumping gas into the biggest gas marketplace in the world
* are to be part of the Marcellus rush ...Announcement due any day now
* have their own drill rig and crew ...very experienced. They have drilled 25 out of 25 successful wells so far ...100% success rate
* We expect the positive results of current well No.6 any day now ...late this week or early next week.
* rig and crew already on the ground on leases ...yes, and 13 more positive Pud sites formed and compacted ready to speed drill in this current programme over the next 2 months
* have a great foothold in the USA market
* Management have advised that the sale of BMX shares have gone through and $14million will be injected into the Company bank account in the next 2-3 days;
* Loan money of $4mil will be paid out upon receipt of the $14mil, which means $10mil+ clear nett funds into bank account
* Excellent cash flow from the current wells
* Top Managers of the Company hold large slabs of shares and plan to be long time holders;
* Marcellus tenement lease to be announced in the next few days. Huge rush is on by the big companies to drill Marcellus, being made available only to the best and brightest Companies ...IMP being one of them
* $100mil Line of Credit from Macquarie bank at only 8% interest rate ...should they complete their current negotiations to takeover other small time successful Naturarl Gas Company/ies in the neighbouring region of the USA
* imp is cashflow positive

* TO targets are usually small to medium-sized industrial manufacturers or service companies whose depressed shares are largely controlled by a single family or organization.

* a takeover target must have a solid balance sheet and strong cash flows to support the added debt the investors will need to complete the buyout.

 

[Mr Muzz]

Re: IMP - Imperial One

Good news about IMP...

...i have just spoken to the "Top".

1. Sale of BMX has gone through nicely and $14million+ will be in IMP's bank account from their 5% sale of BMX shares to the Arab's Cristal Global ...at the end of July. Get ready for that good announcement, when it is lodged;

2. Gas Well #6 of this current programme of 13 wells (5 of which have been commercially successful), has been temporarily postponed due to:
A. Connecting up the current 5 successful wells so that IMP can start selling their gas at the increased summertime level of $13+Mcf instead of the old $7-8 of a few months ago;

B. IMP's drilling rig had been previously calendar scheduled and contracted to drill 5 wells for another company ...at very profitable levels for IMP (while they have to hook up the successful wells) ...because excellent high-speed drilling rigs like IMP's are extremely hard to come by (rarer than hen's teeth);

C. The contracted out drilling work is now up to well #3 for the Client and should have well nos #4 and #5 finished in the next couple of weeks ...so that they can start again on IMP's Well #6 ...and of course ...by that time ...the other successful 5 wells will be all hooked up into the North American grid and making nice cash flow for IMP. Goody goody 2 shoes ...they have been making nice profit from contract drilling, while hooking up very profitable gas-flow-cash-flow wells. Heh heh!

3. The next Quarterly News for IMP is coming out for announcement within 10 days, says "Top" ...which will have lotsa Market encouraging good news in it. So be positioned in the Market to take advantage of that.

4. What happened with the recent dumping of 70 million IMP shares on the Market, which sent it down to 1.2 bargain cents is as follows ...a Marginal Loan Company with a faulty "business model", says "Top", had to sell their IMP holdings to cover their margin loans. As far at "Top" understands, there are no more of those type of goanas in the woodpile. So, hopefully, we won't have any more drongos to upset IMP. But, always be prepared to take advantage of a false drop in IMP if they do, would be my thinking ...because ...as i have shown on previous threads here ...IMP should be sitting at about 3.2 cents based on its current Company capitalised value.

5. Marcellus gas field (adjoining New York, etc) is still looking good, though the cost of private land for the tenement leases is rising steeply ...because people are only just starting to wake up to the intrinsic value of Natural Gas ...and its low cost production and low cost retail and higher intrinsic value as against oil and coal gas. See threads below from Poster "Imperial" who is named Imperial by sheer strange co-incidence prior to becoming an investor like me in IMP - Imperial.

Happy investing fellow IMP forum-ites.

I am off now to top up some more of my current 10+million share holding.

Warm regards,
Mr Muzz

 

[Mr Muzz]

Re: IMP - Imperial One

Here's the latest wise advice about IMP from "The Speculator" - David Hazelhurst from 9MSN.

NOTE how David has double his holding of IMP in the recent false drop in SP due to drongo Margin Loan seller, as i was advising in the top of this tread.

David H confirms also what "Top" was telling me this morning.

http://money.ninemsn.com.au/article.aspx?sectionid=2338&subsectionid=79751&id=597841

Imperial shares savaged

Our successful oil and gas hopeful Imperial Corporation (IMP.AX


IMPERIAL CORP18 July,200818/07/2008 12:30 Sydney, Australia.
Price Change % Change
0.015 +0 +0%

Company overview
Real-time quote
IMP.AX , 0.015, +0, +0%) had its shares savaged last week when various shareholders unconnected with the board or management had their shares sold after the ANZ appointed receivers over the assets of Primebroker on July 4.

The forced sale of Imperial shares seized on behalf of the bank to cover margin loans drove Imperial’s share price down from 1.5c to a week's low of 1.2c before recovering this week to 1.4c. At that price Imperial's 1650 million shares carry a market capitalisation of $23.1 million.

Imperial directors on March 9 pointed out that the company’s gas operations in the Appalachian basin of Pennsylvania, USA, were continuing as planned, with five new wells completed to come on production in the next few weeks. To date, the company has achieved a 100 percent success rate for the 25 holes drilled, with a further 40 locations still to be drilled.

In addition, they expected that Cristal Australia Pty Ltd's takeover of heavy minerals miner Bemax Resources Ltd would go unconditional this week, resulting in a payment to Imperial of $14.43 million within 30 days.

Imperial held 45.1 million Bemax shares (4.8 percent) for which Critsal (a subsidiary of National Titanium Dioxide Co Ltd) bid 32c a share.

Having originally bought 150,000 Imperial shares for the portfolio at 1.2c in March, I later took a profit on 100,000 when the shares went to 1.8c. In the recent massacre we took the opportunity to buy another 100,000 back at our original entry price of 1.2c.

Bought: 100,000 Imperial Corporation at 1.2c ”” $1230 (including brokerage from CMC Markets Stockbroking)

 

[kharma]

Re: IMP - Imperial One

Good news about IMP...

...i have just spoken to the "Top".

1. Sale of BMX has gone through nicely and $14million+ will be in IMP's bank account from their 5% sale of BMX shares to the Arab's Cristal Global ...at the end of July. Get ready for that good announcement, when it is lodged;

2. Gas Well #6 of this current programme of 13 wells (5 of which have been commercially successful), has been temporarily postponed due to:
A. Connecting up the current 5 successful wells so that IMP can start selling their gas at the increased summertime level of $13+Mcf instead of the old $7-8 of a few months ago;

B. IMP's drilling rig had been previously calendar scheduled and contracted to drill 5 wells for another company ...at very profitable levels for IMP (while they have to hook up the successful wells) ...because excellent high-speed drilling rigs like IMP's are extremely hard to come by (rarer than hen's teeth);

C. The contracted out drilling work is now up to well #3 for the Client and should have well nos #4 and #5 finished in the next couple of weeks ...so that they can start again on IMP's Well #6 ...and of course ...by that time ...the other successful 5 wells will be all hooked up into the North American grid and making nice cash flow for IMP. Goody goody 2 shoes ...they have been making nice profit from contract drilling, while hooking up very profitable gas-flow-cash-flow wells. Heh heh!

3. The next Quarterly News for IMP is coming out for announcement within 10 days, says "Top" ...which will have lotsa Market encouraging good news in it. So be positioned in the Market to take advantage of that.

4. What happened with the recent dumping of 70 million IMP shares on the Market, which sent it down to 1.2 bargain cents is as follows ...a Marginal Loan Company with a faulty "business model", says "Top", had to sell their IMP holdings to cover their margin loans. As far at "Top" understands, there are no more of those type of goanas in the woodpile. So, hopefully, we won't have any more drongos to upset IMP. But, always be prepared to take advantage of a false drop in IMP if they do, would be my thinking ...because ...as i have shown on previous threads here ...IMP should be sitting at about 3.2 cents based on its current Company capitalised value.

5. Marcellus gas field (adjoining New York, etc) is still looking good, though the cost of private land for the tenement leases is rising steeply ...because people are only just starting to wake up to the intrinsic value of Natural Gas ...and its low cost production and low cost retail and higher intrinsic value as against oil and coal gas. See threads below from Poster "Imperial" who is named Imperial by sheer strange co-incidence prior to becoming an investor like me in IMP - Imperial.

Happy investing fellow IMP forum-ites.

I am off now to top up some more of my current 10+million share holding.

Warm regards,
Mr Muzz

Hi all, and a thanks to mr muzz, for the info. however being new to the game, i thought information such as this, is to be released to the market as soon as the company knows.

Or am i just livivng in a fantasy land.
Regards
Kharma

 

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Re: IMP - Imperial One

interesting for imp in that bigger players in the us market....where imp is based, is looking at aquiring smaller, proven resourced gas companies....imp has great leases, more coming online, already connected to the grid etc....

Big Canadian deal for unconventional gas. Good news for Molopo.

Shell to Acquire Duvernay Oil for C$5.27 Billion

By Ian McKinnon and Joe Carroll

July 14 (Bloomberg) -- Royal Dutch Shell Plc, the world's second-largest energy company, agreed to acquire Duvernay Oil Corp. for about C$5.27 billion ($5.24 billion) to expand gas production from hard-to-tap formations in western Canada.

Duvernay shareholders will receive C$83 for each of their shares, a 42 percent premium over the closing price on July 11, according to a statement today from Calgary-based Duvernay. Shell also will assume Duvernay's debt, which was C$581.7 million as of March 31, according to a company filing.

The premium ``is quite substantial,'' said Dirk Hoozemans, who helps manage the equivalent of about $23.8 billion at Rotterdam-based Robeco Group. ``Probably Shell wanted to address its North American gas position with the acquisition.''

Shell, in the biggest oil and gas deal of the year, is paying the equivalent of about $9.10 per thousand cubic feet of proved natural-gas reserves, according to Bloomberg data. That's more than double the price offered last month by XTO Energy Inc. in its proposed $4.03 billion takeover of Hunt Petroleum Corp.
Duvernay produces the equivalent of more than 25,000 barrels of oil a day, consisting mostly of gas, and is developing so-called tight-gas projects in rock formations in the Western Canadian Sedimentary Basin, Shell said in a separate statement. Daily output might reach 70,000 barrels by 2012, it said.

`Unconventional' Projects

Shell and rivals including EnCana Corp. are turning to such ``unconventional'' sources for gas to meet growing demand as prices soar. Canada is the largest U.S. supplier of the heating and power-plant fuel. Gas futures traded in New York have jumped 60 percent this year. They touched $13.694 per million British thermal units on July 2, the highest since December 2005, when production in the Gulf of Mexico was disrupted by hurricanes.

In addition to the rock formations, producers are tapping shale deposits in northeastern British Columbia, where the Horn River region may contain 37 trillion cubic feet of gas, similar to reserves on Alaska's North Slope, consultant Wood Mackenzie estimated in May.

Shell, based in The Hague, has daily ``tight-gas'' production, a reference to output from sandstone or other difficult-to-access formations, equivalent to about 80,000 barrels of oil, according to its statement. Shell plans to invest about $27 billion this year as it expands unconventional development projects.

Little Explorations Risk

``For most deep basins like this, there's very little risk of encountering water, so getting the gas out economically is just an engineering exercise,'' said Dave Kisilevsky, a geologist who has studied western Canada's gas formations for Calgary-based Petrel Roberston Consulting Ltd. ``Pretty much all the rock is gas-saturated, so there's very little exploration risk.''

The acquisition is Shell's largest since its C$8.21 billion purchase in April 2007 of the 22 percent stake in Shell Canada Ltd. it didn't already own.

Shell fell 25 pence, or 1.3 percent, to 1,915 pence in London. Duvernay rose C$23.56, or 40 percent, to C$82 on the Toronto Stock Exchange, the biggest one-day gain since the company began trading in February 2004. About 10.7 million shares changed hands, more than 26 times the average daily volume over the past six months.

Duvernay gained an average of 47 percent a year since the initial public offering. CEO Michael Rose owned 2.52 million shares, or a 4 percent stake, as of June 19, according to a public filing.

Reserves

The company increased reserves by 88 percent last year to the equivalent of 95.9 million barrels of oil, enough to sustain Shell's worldwide output for 30 days, according to data compiled by Bloomberg. Duvernay's production is 89 percent gas and the rest is crude oil.

Duvernay employs about 100 people and was formed seven years ago, spokesman Scott Kirker said today in a telephone interview.

Peters & Co. advised Duvernay, which agreed to pay Shell a C$120 million break-up fee if the transaction isn't completed. Shell said owners controlling 18 percent of Duvernay's shares have agreed to support the transaction.

Irving, Texas-based Exxon Mobil Corp. is the world's largest energy company by sales.

 

[kenny]

Re: IMP - Imperial One

Nice to see the "Ceasing to be a Substantial Holder" statement come out regarding the Primebroker driven selloff of IMP.

Some 62 million shares released onto the market will always have a detrimental impact on the sp. Let's see whether we get some recovery in the coming weeks ahead.

Cheers,

Kenny

 

[Tukker]

Re: IMP - Imperial One

So Imperial one has a bunch of gas and oil finds. Cash flow positive and future areas similar to the ones already drilled successfully. Off the radar, holding to support lvls around 0.014, holding peacefully.

 

[Tukker]

Re: IMP - Imperial One

Good news about IMP...

3. The next Quarterly News for IMP is coming out for announcement within 10 days, says "Top" ...which will have lotsa Market encouraging good news in it. So be positioned in the Market to take advantage of that.

Any more news when this report might be coming out? 10 days = 28th July I'm about to drop some cash into this one if the report is to my liking.

 

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Re: IMP - Imperial One

ann out...

there are 2 more anns tomorrow. this one today is about oppies..not sure how the market will see it. 10 million dumped in 20 mins yesterday. someone knew about the oppies???

 

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Re: IMP - Imperial One

ann out...with an interesting line...

"..the medium term strategy is to aggregate sufficient assets until a critical mass is achieved to enable an IPO on either AIM or a USA stock exchange.."

 

[Tukker]

Re: IMP - Imperial One

Natural Gas Market Summary – no significant supply disruptions have developed to date during
the 2008 hurricane season and natural gas to power generation has not reached the daily peak of
38 Bcf seen in July 2007. Coupled with strengthening domestic supplies these market
fundamentals have pushed Henry Hub acquisition prices down, particularly during the last three
weeks of July. Declining world oil prices have also helped create the price decline momentum
for natural gas in the U.S.

Looks like there is no supply pinch so far, so downward/neutral pressure of natural gas is prevalent, however summer almost over and winter on the horizon there may be room for growth. This could be especially so if the Hurricanes start pumping late, like they have done the past 3 years. In either case, Imps is cash flow positive, with a nice war chest at its disposal for other acquisitions it could use to acquire this "critical mass" its talking about. Shame about the prices of the land in Pennsylvania, but meh.

$56K changing hands daily on average, showing some trader interest. I've followed suit a bit, buying and selling between 1.3c and 1.6, using the profits to increase my base investment. For me this seems like a nice lower than average risk play with acceptable volatility and future growth potential.

Good luck to holders

 

[Tukker]

Re: IMP - Imperial One

Turmoil all over the place yet this little fella keeps support with about $13,000 - 78,000traded daily.

Cash flow positive with a nice conservative strategy. They won't find the proverbial "elephant" but they will unlikely find a brown snake in their bed either. They own their own high speed drilling rig, renting it out when they don't need it and have lots of cash at their disposal (thanks to Beemax and a modest credit facility). Huge sell off from a margin loan company collapse has finished wiping off 40% of its market cap, leaving it at its lowest support levels typical of 2006/7, the difference is, they have more assets now.

To me this is a pleasant one to sit on while the market throws fruit loops into the croc pit. Quietly holding.

 

[Tukker]

Re: IMP - Imperial One

Nothing spoken since my last post in Sept.

6th well of the 18 planned has been completed. IMP's drilling rig comes available again in Dec to drill 4 more, paid for through the 100mil credit facility by Macquari. Production increased about 15% to around 28,500mcfpm, with 60% hedged at $8.10 for the next 2-5 years.

The projected 2009 annual average Henry Hub price is $6.82 per Mcf compared with $8.17 in the previous outlook.

No debt, cash flow positive, acquiring new assets in order to achieve an IPO on either AIM or a USA stock exchange.

To me this is just the kind of low risk junior company i can sit and hold on to.