Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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I'd surmise that its for the first reason. I don't think its contingent on the funding. They've raised sufficient already.
What do others think?
Exactly, why is it only 'potentially'?
Is it contingent on the results of the A&B sands?
Is it contingent on more funding (genuine question do we have an idea how much the drill of sands A&B alone will cost?)
Or maybe some other explanation?
Is the reason the RNS uses the word "potentially" because appraisal drilling into the deeper sands will necessarily and logically depend on the results they get at the A&B sands? There would be little point continuing deeper if they were not happy with A&B. I'm not saying they won't be happy, but you would put in the contingency in the RNS just in case, as nothing is certain until it is certain.
Listen to the company presentation;
There are three main objectives of the Anchois Appraisal well;
1. Test sand A & B - The appraisal well is drilling very close to the original well. Anchois well hit 55m of high reservoir quality gas, with 28% porosity, very high confidence of high flow rates. No impurities, cheap and easy to produce
2. Used this well as future producers (low development cost and time-saving)
3. Test deep "Low-risk" exploration target in sand C, M and O. Original well intersected thin gas sand in sand C and new PSDM indicates the sand getting thick and better towards the west (an appraisal well). That's why sand C (164 BCF) is very low risk with 64% CoS. Sand M was water wet gas in the original well but excellent reservoir quality. According to reprocessed data, a strong indication of good gas quality in the upcoming Appraisal well. Sand O (358 BCF) was never tested in the original well but processed data indicates similar attributes to what is seen in Sand A & B (bright spot and more). For detail, the 2020 AGM presentation (Video) is available on the CHAR website.
From the rig RNS : 'Potentially deepen the well into additional low-risk prospective sands with the aim of establishing a larger resource base for longer term growth.'
Why only potentially? Either they want to see the results of the upper sands first (ie not 100% Cos) or we don't have enough cash to drill deeper and still hoping for a farm out.
Other suggestions / explanations welcome.
Oiler, I would encourage you to go through FinnCap broker report. Sand A & B have 100% CoS, while deep zones exploration target have upto 64% CoS.
Sand A & B already discovered and proven. According to rns. It has NPV of $500m or 44p equivalent
The real question should be-----------What's the company cash position after the drill.
What's the company cash position and cost of drill? Thanks
Daywalker, We just had a sizeable placement, another one before spud is not impossible, but improbable. And with a very low risk appraisal drill this time round. That said, I am now appropiately position sized in this, SLP, VLG and PTRO, meaning I will now hold CHAR past spud and after appraisial results. My plan was to sell mid spud, but a loss here would not hurt my total equity too much. I was holding too much into CHAR before hoping for quick rise, and I noticed that i was posting too much here, meaning I was starting to get emotional attached - a quick way lose ones load :) Anyyway, sleeping just right now, when you cant sleep thats a sign you are holding too much.
Thanks for the warning, I might need to give that a second thought.
On another note, does anyone know how much the drill will cost us? If I remember correctly the last one in Namibia was around $15m and at that time rig rates were rock bottom.
“Buy cheap, wait for the inevitable rally before the drill, sell some shares to experts who don't like buying cheap but rather pay more and then got a free carry into the drill. “
These shares have been in my bottom drawer for years (since last drill). Looks like things might start to get exciting again.
Be careful with your strategy because that is exactly what people (including me) done prior last drill and then an unexpected fund raise happened pretty much locking every one in.
Finished my hiatus since the Rabat deep drill and am pumped for the next adventure.
Got a foolproof plan. Buy cheap, wait for the inevitable rally before the drill, sell some shares to experts who don't like buying cheap but rather pay more and then got a free carry into the drill.
What could possibly go wrong?
Happy weekend everyone!