RE: News23 Mar 2024 17:44
Hi Zengas - some good points and questions! Hopefully, the below helps.
PSC:
* No bidding to cost in for PSC – cost was in the JTS (RNS 2022) & as a prerequisite completed on time & to standard.
* RNS 28 Nov: “JTS complete & news flow upcoming on license undertaking through a PSC”.
* That’s what we are now waiting on to unlock the news flow.
Farmout / JV
* RNS 28 Nov: “news flow across a number of fronts including the commencement of formal farmout process; well planning & drill site preparation.”
* RNS 22 Jan – “Finances and investment committee announced, including the oversight of joint venture funding offers which the company has received, preparation and oversight of formal farm-out proceedings, reviewing strategic interest on Block SK334 and unsolicited funding/farm-in offers.”
Seismic 3D/2D:
*$30,000,000 historically spent on the onshore block for 2D data analysis (not 3D).
*RNS 28 April / 14 July 2023: “worked with Brunei’s National Oil Company in collaboration, including cross border 3D data sharing with discoveries in Brunei, 2D & 3D seismic seeps, field and wells – SK334 same geological setting and basin history with significant discoveries in the Belait, Jurdong fields and the neighbouring billion barrel Seria Field in Brunei.”
*Multiple RNS: x3 main prospects A-B-C and seismic analysis.
*3 prospects (Santubong, Lesong and Lesong South) and 1 lead (South Lead) were mapped as faulted anticline closures, where the largest of the prospects has an asymmetry high relief dome.
*Potential additional areas - Full Tensor Gravity (FTG) data and geological field-work results to assess additional potential targets on the eastern flank of Block SK334 (Lawas area). Early indications suggest the Lawas area may be equally prospective.
Volumetrics:
*RNS 28 April 2023: same geology as Brunei– “Preliminary 3D volumetric calculation, building simplified 3D geocellular models of each structure in the Petrel software made available during our initial Workstation Data Room.”
*PETROS (Malaysian National Oil company and growing into one of the biggest in Asia) is already a partner & has used in house experts to analyse UPL data.
*RHS 5 Feb 2024: “Resource Estimates: Methodologies for Volumetric Resource estimates were deliberated and agreed with PETROS, structural overview of lead prospect Santubong to be prepared and shared.”
Warrants / Options:
*c.120 million warrants remaining and c. 141 million options remaining.
*Company have said they are fully funded (and see JV comments about the interest)
Drilling
*Rig , well design, crew selection - LOIs signed and confirmed.
*Ready to go and plan to drill 2024 (Q3/Q4).
We’re at 30 million mcap yet have all the above.
It’s a bargain in my opinion and, as per RNS it’s “unique amongst the world’s remaining high potential lower risk oil and gas exploration plays.”
As the phrase goes, you pay your money, you take your choice.
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