Member Info for Adw198

The idea a producer has less operating costs than a non producer is going some, even for this board!

Notice how they said they’re targeting a reduction in costs, not that it has been achieved. The one example was the power, which it turns out involves spending money on to save money and thus hasn’t been done.

So when asked about overheads after saying he didn’t know, he gave the figure they’d spent in Janaury and February did he, excluding the $800k a month they spent over January - December 2024?!

We can have different opinions about the likely spend. It’s noteworthy you immediately dismissed all views that weren’t your own as hysterical.

If there’s a raise this month will you come and apologise for that and acknowledge you were again wrong?

You heard correctly mate.

The RNS also spoke of the company “stepping up its efforts” to find a partner.

Buck was asked and said he didn’t know!

Buy we know they spent circa $10m last year. The idea is suddenly dropped as they started producing is absurd and will shortly be proven false.

“Gigi - the people you are debating with have an agenda, and are not objective thinking neutrals by any means. “

Gigi bragged about topping up at a bargain price of 2.40p. I’m not invested here - so who has an agenda and who is objectively quoting FACTS and figures?

A raise is a certainty, they can’t get the accounts signed off otherwise

There’s no way they’ve only gone through $1.4m in the past 5 months.

We know for a FACT they went through nearly $3m H1, then another $7m H2. We can ringfence some of that for the failed drills but where did the rest go if not on general running costs?

I totally agree it was a very different operational context last year, when despite not actually being a producer or having new licences they spent nearly $3m cash in 6months.

We’ll find out very soon who is right and who is wrong.

Yes Wigster the going concern statement will be very interesting.

Last year they somehow got it signed off based on expected revenue - would love to know what their revenue and expenditure projections looked like and of course as we now know ZERO revenue has arrived. Instead they raised $9m, nearly all of which has now gone with the end result of 160bopd and a business plan that is entirely reliant on finding a partner.

“Accordingly, the Company believes that the current cash balance is sufficient to continue operations until at least July 2025. Production operations are expected to commence in the second half of 2024. This production will provide the Company with a revenue source and ensure that the Company remains a going concern“

My figures (facts) are taken from formal statements to the market.

Whereas the phrase lean operating model and associated made up figures comes from Gigi’s wishful thinking. It’s not credible to think running costs have massively shrunk whilst the company expands its operational. In fact it’s completely disingenuous or stupid to claim that.

Facts indeed…

“The Company's cash balance at 30 June 2024 was USD 1.93 million (USD 0.77 million in cash and USD 1.16 million in Financial Assets), which compares to a cash balance of USD 8.39 million (USD 0.82 million in cash and USD 7.57 million in Financial Assets) on 30 June 2023”.

“As of 31 December 2023, the Group's cash position was $4.5 million (inclusive of Financial Assets) (31 December 2022: $5.1 million).“

So first half of last year they went through >$2.5m of cash and you think for the equivalent period this it’s going to be a fraction of that, despite now being a producer, with new licences and increasing spend on renewables.

Make it make sense!

You’ve allocated $50k for the new licences, which we weee told cost $980k over 2 years. In fairness we don’t know how front or back loaded that spend might be but if you flat line its $40k a month.

The stored oil value was quoted in $, not £.

You have dismissed amateur auditing of accounts but then tried to do the same. At no point in the last few years has the cash burn not been miles more than you’ve stated.

Abzzba give it a rest

“Beam pump stroke and pump speed can be adjusted to increase production but as always its a case of start at lower settings and increase in increments“

At every single stage you’ve imparted your alleged oil field wisdom and got the predictions massively and abjectly wrong.

I note the company failed to take the opportunity to tell us production on the 1 producing well will soon increase, instead telling us a fall in production was typical. Why might that be?!

If it helps jog your moment thorn you told us this a few weeks ago

“Most have an average of 4p or more was suggested. That was my average in my ISA envelope before last week's purchase but am happy that even they will be well in profit with a good Heron 1 RNS“

Hilarious how bad you are at lying.

Did you last top a few weeks ago?

The bottom line is you’re a liar Thron.

You told this board you topped up a few weeks ago at circa 1.85p.

Yet last week you told the AVCT board

“Last topped up there at 1.25p”.

So were you lying to that board with the 1.25p top up claim, or this one about the 1.85 last top up claim?

Almost as if you’re embarrassed with your investment.

Odd you didn’t tell us about the top up at the very bottom at the time. How fortunate you caught that price. :)

Blah blah blah aka considered analysis. Set that against the same old posters who insisted Heron 1 would produce MULTIPLES of the already underperforming 200bopd, who are now insisting it’s not that a big a deal. Well I say it is - not only does it place even more pressure on short term finances, it makes the whole field look less compelling.

This is fast becoming a binary bet on a JV / field sell. In the context of PC playing us like a fiddle - they are currently holding the oil whilst we plead for some money.

As for there being a plan, there is no plan. Even the work to reduce Heron 1 Opex hasn’t been committed to, it’s still just under consideration. Look how little progress has been made there since March - they’re not even received the quotes. It’s a farce.

“The project to tie-in the Heron 1 wellsite to the nearby and recently upgraded electricity grid, to offset diesel use for power generation and so reduce operating costs, has reached the tender evaluation stage. If the commercial bids are attractive, we anticipate completing the connection during the summer months”

I’ve just re read it and find his opening quote a little misplaced

“We are pleased to have agreed the amounts payable for Heron-1 production”

Isn’t it precisely the amounts payable that are now in dispute?

After which we should definitely see some humility from those who categorically ruled one out and objected to the topic.

Yep I’m the same doc, I see it as a basket case type stock now. The last few releases have lacked any credibility and mean I can’t take the company seriously.

That said, it’s a volatile stock which gives the opportunity to make some money if timing it right. And we know from the 10year chart how to do that ;)

A Heron field sale should be the priority, altho having seen the spend required to achieve so little, it doesn’t bode well for the commitment on the new licences. The Promised

Yes Doc agreed, there will be no money for any of that work which is why there no plan to tackle any of it, they’re just floating potential options. The new licences alone will need circa $500k spent on them this year, so the cash burn will be bigger than ever.

Look at his justification for a raise last year and then consider how this very scenario has indeed played out

“Our business is primarily one of risk management….We’d have been entirely reliant on 1 well in a basin known for its unpredictability. Any negative incident or underperformance would nave been a major concern for the company and raising money in an emergency and raising money in those circumstances would have been extremely difficult”.