RE: Profit taking?6 Jan 2025 09:56
StockCheque
Do you think it is coincidental that the share price has been reducing since this post below.
dustofnations
Posts: 1,247
Price: 7.56
No Opinion
RE: Lafayette2 Jan 2025 19:27
Lafayette/HSO are now planning to build an on-site processing facility, which is going to be fairly expensive. That was not in the previous IPO Prospectus. I am speculating, but processing facility is what Jason was referring to at the AGM (it is exactly the same terminology and purpose); however, previously Jason advised that this would be funded separately of Lafayette — but, it seems to have been pulled in now.
I don't think that's a negative at all; in fact, it probably simplifies things.
No idea when Lafayette are finally going to execute on the IPO, but one would hope it's not too far away.
I suspect the most recent delays are explained by the downhole heater problems. As you will see from the prospectus, these issues have been resolved by using a new vendor.
Unfortunately, the first vendor advised them to inject 1,800 barrels of water down one of their wells, which has also taken ages to extract.
You will also note some significant changes in terminology on the release of $2.5 million of funds from a strategic investor (tranche 2). Previously, it just stated "100 barrels of oil produced". This has now changed to "100 barrels of oil in full production" (which they then go on to say they have not reached full production).
At any rate, they appear to have worked out the various technical gremlins and the second downhole heater from Vendor 2 will arrive on site mid-Jan, and hopefully enable the second well to begin continuous production by end of Jan.
(More on that in the IPO Prospectus, please don't take my précis of this segment as canonical)
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