Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
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Trellis I did wonder myself why they had opted for the micro LNG especially as you say there were plans to import it on a large scale plus it’s expensive to make it in the first place. Normally the use of LNG is used as an alternative where there is no stable pipeline supply of gas which is what I assumed was the case with the morrocan infrastructure being in its early stages.
One would think however as the gas pipeline infrastructure increases then it would be far more profitable to pump the gas direct to the main.
I appreciate it might take a good while and serious investment before we were at that point and perhaps the LNG was a short term stopgap which enabled us to sell the t5 gas into some sort of market?
Trellis - you remind me of the sort of bloke who waits outside a pub waiting for Happy Hour to finish. Give it a rest mate - or did Marco nail one of your wannabes? You are not Spartacus. No wonder you drink on your own.....
Only precluding the LNG phase. Everything else including the sale of the company or assets is still ongoing.
That's without question
Also when you read the turner pope report they also based thief figures on Sound paying for transport of lng.
So looks like we are getting a little oversold.
The 7.5 p was based on sound only holding 23%, we hold 47%.
It also added no value for us selling the 24%
It added no value for Annoul, just re negotiated
It added no value for Sidi, even though someone tried to farm in for 15million.
please do try to stay on message Eric (that is negative), you'll upset some people if you don't paint an entirely negative picture.
The transport cost are not ours. They are with the partner. Watch the company Q and A.
Trellis, no problem with dampening my spirits as any feedback from a long term investor is always good and useful to balance a perspective especially for newcomers to this share like me. I’m not confused with the LNG or pipeline and did mention that the pipeline would come at a later date. I also appreciate about the LNG tankering situation as I have over 20 yrs experience within the LNG industry including tankering operations.
What I was assuming (rightly or wrongly) was that the LNG was for the local domestic market and that the transportation costs would be reduced as they were not exporting by road to neighbouring countries over vast distances.
Your views pessimistic or otherwise are always welcome.
Bigbench. Yes, a spell in The Naughty Room is warranted for you for mentioning the 'unmentionables'. Another poster, who I believe started the **** talk many moons ago, and even bought a registration plate ( idiot), is probably still itching to talk about them again, albeit not at Echo or Coro.
ps300306. Apolgs. I should have referred to LNG. Although, to be pedantic. lol, liquid NG is also a liquid Petroleum gas. since CH4 can be associated and extracted from crude oil. But you are correct, liquid propane and butane are universally called LPG.
PS LNG can also be expensive to produce depending on how many contaminants need to be removed from the gas. Carbon dioxide and hydrogen sulphide being the main culprits. The good news is that there is a local market on the doorstep so transportation costs will be low. Most profit would be if the gas was put straight to pipeline for the local market and this may indeed come at a later date.
testpack3: I noticed you've now referred to LNG several times as LPG. Call me a pedant (which would be entirely accurate) but they're not the same thing. LNG (liquefied natural gas) is compressed methane (CH4). LPG (liquefied petroleum gas) is compressed propane (C3H8), or a mixture of propane and butane (C4H10). These are the lighter hydrocarbons that come up along with oil, referred to as condensates. Methane may also be found associated with oil, or non-associated as in the TE-5 Horst. Apart from just pedantry, condensates are much easier to compress than natural gas, so much more of the energy (and therefore value) of natural gas goes into the compression to LNG. (Some of this can be recovered if regasification is done using waste heat from a generator).
BB yes originally I knew that I would have to wait some time before we see the large sustainable push with this share and I have no choice now as pulling out would wipe me out so like others find myself somewhat trapped at this moment. I would have thought that the pump and dumpers should have moved on so I am still baffled by the huge swings still prevalent.
Perhaps to avoid all this depressing slide I should not keep checking the price and come back in 12 months time, hoping everything has panned out by then.
Do I have to go on the naughty step?
It rose fast because the sp was under a penny... I saw some were buying and I also added over 1m to my holdings sub 1.4p ...I've always said this is a long game here but I've been mighty impressed with GL especially in the first interview... Nothing wrong with saying I still have faith the "Moroccan dream" may deliver in the years ahead and if I was happy to but at 50-60p why not load up at 1p when nothing has actually changed.
Joe I agree it did rise too fast and possibly too far but that was based on positive news. Considering there is no negative news then it should stabilise a little instead and perhaps slightly drop but not by these huge percentages.
This will drift for a bit. It rose too far too fast when revenue is still such a long way away. Still pleased with the direction....staying for the long haul still,
Testpack it appears that we are all in general agreement. The sp is likely to fall back with no news and I’m not expecting much to be honest in the next few months. If/once we get to production it will take at least 12 months but we are clearly heading towards that point but I have no doubt the sp will easily reach and surpass 10p when the gas is flowing. How much the price will push on from there will depend on how much revenue/loans have been structured and how the company spend to expand their production plans.
The only poster who is my 'bad ' books on the ramping side is Bigbench, who unwisely mentioned cars again last week. Naughty Bigbench. There are many 'ifs', however, a fact is that The Horst has c0.5 tcf of NG, with a net value (47.5%) of c $1-1.5B. There is a plan in place, We have no alternative but to trust it. The sp is in decline beause since the 'good' news of the HOT and Annoule extensions etc, I believe 'news will be in short supply over the coming months. It may drift back to 2 p. No loss if you don't sell. If SCHL want 'out', as a poster suggested. let it go. It hasn't exactly 'thrilled' us. It's not into LPG, so are not required. It was given it's stake in The License, and has obviously spent cash in it's drilling campaigns, and has 'lost' money. Well, join the club SCHL. I'm sure it has had more expensive failures. I hope it leaves and SOU gets back it's 25%. ( v unlikely). I doubt that 'if' the LPG gets to up and running with net SOU income of £12-15M pa will get the sp above 10p, but the big prize ( slight ramp), will be if we have sufficient funds to explore again, but this time with an OnG man at the helm. It's not exciting times because there are too many 'ifs' and 2-3 years to wait. All as I have to do is live that long. GL all.
PS yes a bull trap is exactly what it is. However I am still confident and not out of desperation given my situation. I invested on the basis of what I understood at the time and still believe in that decision . I did think at the time that I would have to give the investment time and this is still the case. I wi either be right or wrong and time will surely tell.
Sharetrader, I get what you're saying. I'm in no position to lecture, but it sounds like you got caught in what they call a bull trap. If you're confident you might want to consider adding when nobody else wants to touch the share, not when there's a buying frenzy. I'm in totally over my head myself, but at least I have 2.5m at under 2.5p (which will probably never make up for another tranche I can't bring myself to mention).
Sorry ps not jps. Also don’t know how it posted twice but fat fingers and IPhones are not a good combination.
JPS I wouldn’t say that success was a total no brainier but more likely than not given the circumstances. Having read some of the reasoned comments in the last few posts it is clear that although optimistic there is still one or two hurdles to get over before the flow of gas is nailed on. Perhaps my optimism is slightly tainted by the fact that I am now balls deep into this share and although I have only recently purchased at the recent high find myself now trapped by the fact I’ve invested at the wrong time. I may not like hearing negativity here but appreciate it all the same as it gives a grounding to my optimistic position that may at times be somewhat unrealistic. I find it depressing that the current sp seems to be eroding large percentages on a daily basis but appreciate that the longer term shareholders have endured this over a considerable period with huge losses so I won’t complain.
PS I wouldn’t say that success was a total no brainier but more likely than not given the circumstances. Having read some of the reasoned comments in the last few posts it is clear that although optimistic there is still one or two hurdles to get over before the flow of gas is nailed on. Perhaps my optimism is slightly tainted by the fact that I am now balls deep into this share and although I have only recently purchased at the recent high find myself now trapped by the fact I’ve invested at the wrong time. I may not like hearing negativity here but appreciate it all the same as it gives a grounding to my optimistic position that may at times be somewhat unrealistic. I find it depressing that the current sp seems to be eroding large percentages on a daily basis but appreciate that the longer term shareholders have endured this over a considerable period which huge losses so I won’t complain.
Trellis -- I didn't mean to imply that the funding requirements are subjective, but that an investor's assessment of the risk of them not being met is subjective. Sharetrader123 is a case in point -- his assessment is that success is a relative no-brainer. He "just can’t see this failing now".
I should probably add that the decision to raise money only for exploration and not field development when the SP *was* favourable turned out to be catastrophic. With no change in underlying assets, even shareholders in the happy position of being able to average down now run the risk of being diluted out of existence or seeing the company going under altogether. But I guess that's water under the bridge. The new management wants to rebuild trust. That will take more than just words.
Sharetrader, not much has changed regarding the TE-5 Horst in the last several years. SOU have demonstrated that -- with stimulation -- it can flow commercial quantities of gas, and RPS have certified the reserves. In the mean time, the share price has been above £1.00 and below £0.01. Neither can be said to reflect the TE-5 potential. So how can the SP be this low? Clearly it's because wary investors very much *can* see this failing. The gas potential is far from being the only ingredient for success. The finances need sorting and having a CEO who says he thinks he can do it does not equate to actually getting it done. Trellis is absolutely right to sound that note of caution. However, the hapless LTH can do little other than wait and see what transpires.
As for a higher SP making it easier to raise finance, this is a Catch-22 situation. Raising the finance is probably the main thing that would instill confidence in investors.