Member Info for ART123

According to the RNS dated 27th June 2022:

"The Company expects to receive, during July 2022, a permit for the area that is to be mined by MHW using the second highwall miner."

This permit is now imminent and will immediately give access to the doubling of production.

I suggest that the Canadian market has called this correctly (up 27% yesterday) and that the London market is completely wrong. It was much like this when the 'significant discovery' was first announced, when the UK market rose a little only to fall back while the Canadian market on opening rose very strongly and maintained the rise. No doubt the LSE will get there eventually, though it is very annoying in the meantime.

This link gives an example of a company repaying their convertible bonds, at face value plus interest with zero issue of any convertible shares:

https://www.investegate.co.uk/hurricane-energy-plc--hur-/rns/repayment-of-convertible-bonds/202207250700075296T/

Lots of confusion here since the financing was announced on the 22cnd. Bonds are very different to Loan Notes. Bonds are used by large multi-billion $ companies while Loan Notes belong in the world of AIM minnows. Bonds will rarely if ever get converted into shares. If not repaid at the end of the term, the term can be extended or new bonds can be issued to include the outstanding amounts. These 2 bonds mature in 2024 and 2025. In the meantime all COPL need to do is to keep up with the interest payments. Nothing will be converted in the meantime before maturity.

The Canadian market obviously understands this while the London mob are obviously a bit dim.

This effectively gives COPL time to increase production, primarily from the Barron Flats Shannon unit. Production was initially upped to 2720 bbl./d and can be upped further to around 5000bbl./d now the CUDA business is sorted and the funds available. This is apart from the discovery in the Federal Deep.

Talk over a year ago was of getting production up to 5000 - 7000 bbl./d and this is what the management here need to get busy with now the CUDA business is sorted.

From an RNS last March:

"The Company's reservoir simulation conducted by a third-party specialist reservoir engineering firm in January of this year suggests a gross production target from the Barron Flats Unit is now 7,000 bbl./d in 18 months time due to the increase in gas injection volumes alone. This equates to a five-fold uplift on current production rates."

The first objective now the CUDA business is sorted is to up production. From last August:

"· COPL's Wyoming assets continue to perform significantly ahead of expectation
o Current Oil Production at August 31st is 2,720 bbl./d (gross), 1,604bbl./d (net) a 24% increase from the operations update on August 17th, and an increase of 123% from 1,220bbl/d (gross), 706 bbl./d (net) at April 1st
o Successful recompletion of the 3rd marginal/shut-in oil well of 12 at Cole Creek.

o Oil production at the Barron Flats Shannon Unit will continue to increase due to strong gas injection response
o Oil production at the Cole Creek Unit will continue to increase through the recompletion of marginal and shut-in wells "

Pretty soon after this CUDA went into administration and there was an issue getting enough gas to inject though hopefully these issues are now all sorted. The initial target with be to get back to the 2720 bbl./d - most of which will now belong to COPL and then to increase this further. This is all on top of the significant discovery.

The fact that these bonds are with a reputable fund will help but the price of oil staying favourable over the next year or two is the real key, as well as upping production considerably.

I think the problem here is a confusion between bonds and loan notes. Bonds are the way FTSE 100 companies raise cash while loan notes are common amongst AIM tiddlers. Bonds are normally repaid with cash whereas loan notes invariably get converted to low price shares. Much of the confusion comes from Millholland referring to them as 'convertible' bonds when as I just said bonds are usually repaid in cash in full before the redemption date. With bonds, on the agreement of the issuer, the term can often be extended, in this case for 3 months, 6 months or even an extra year.

However the terms are strict and the bonds do have to be repaid at the agree date, or they can be converted into shares which is often all but ruinous for shareholder value. HUR for example recently got under water with their Bonds and shareholder value was nearly all but wiped out but after an extension and the rising price of oil they were able to repay the Bonds in full without any shareholder dilution. GKP on the other hand a few years ago had a massive dilution due to the failure to repay their outstanding bonds. In their case the price of oil moved unfavourably.

https://www.investegate.co.uk/uk-oil---38--gas-plc--ukog-/rns/successful-placing/202207271400459604T/

Who remembers this from September last year when it appeared that the new acquisition was off to a good start:

"· COPL's Wyoming assets continue to perform significantly ahead of expectation
o Current Oil Production at August 31st is 2,720 bbl./d (gross), 1,604bbl./d (net) a 24% increase from the operations update on August 17th, and an increase of 123% from 1,220bbl/d (gross), 706 bbl./d (net) at April 1st
o Successful recompletion of the 3rd marginal/shut-in oil well of 12 at Cole Creek

Arthur Millholland, President & CEO, commented:
"Our Wyoming assets continue to perform well beyond our initial expectations as I indicated in the August 17th operating update. Crude oil production has increased 123% from April 1st, and continues to increase weekly. In fact, crude oil production has increased by 24% from our last update just two weeks ago. The increase in crude oil production is due to the ongoing enhanced gas injection program, commencing on April 1st. As such, oil production will continue to increase as the surface well site production facilities are enhanced to handle the increased oil production rates and associated higher working pressures."

Of course this was before everything was derailed by the CUDA administration and the shortage of gas and other complications which all hopefully will now be sorted. Now lets hope the increased production can resume.

I think that Mr B could try a little harder. Maybe the heat is getting to him and he just wants to keep his communications as short as possible.

Anyway I believe we are still due a summary of progress on the Racecourse prospect (having had the promised summary for the Ascot prospect some time age).

Then we should get the final drill results and assays for the remaining holes in Phase 2, which will then hopefully be followed by the plans for Phase 3, which we are to believe is fully funded.

Obviously progress is going a lot slower than we were led to believe a year or so ago, but with the gold projects finally coming good and promising revenue and profits as they up production and further dilution not a worry at the moment this shouldn't be too much of a problem.

The joke is that if the CEO had put everything he said in the recent podcast, or at least the gist of it, in an official operational update and released this as an RNS then the share price would without doubt be in the mid 40p's, and maybe even the 50p's or 60p's by now. The wider market does not overly bother with podcasts and always prefers updates, hence the flagging share price.

While the CEO was quick to release the " Statement re. share price movement" RNS on 29th June, he should also have seen the need to follow this up with an up-to-date communication re current operations and what is in the immediate pipeline.

The fall back since the 'everything is going well and to plan' podcast is just a mite tedious and unnecessary if the management used their common sense a little more.

Communication is everything with these AIM start-up companies.

Exchange rate is 1.54 so C$0.34 = 22p and C$0.37 = 24p

All the management need to do here is to bring out an operations update. There hasn't been one sine 14th March so one is well overdue.

What is needed today is an operational update to steady the SP as there hasn't been one for a while.

Maybe some more directors buys too, and a bigger quantity than before.

Maybe this just needs a positive operational update to get it moving back upwards.... what news is due?

Yeah, I'm new here alright (not). So, experts, what's next? Back down to 0.22p?????

Okay, irrespective of the number of cases and deaths in China, the strict lockdown rules and border closures in China has been one of the reasons why the Thar project has been on the back burner for the last couple of years.

The other is obviously the climate change factor. However it is quite clear that many of the leading industrial nations are still using vast quantities of coal to generate their own electricity supplies (cheaply).

I was surprised to see 2 new IPO's on the LSE last year, both coal miners, and that both of these shares 10 bagged soon after their listing. One of these was in the USA and the other in South Africa. Australia is also still churning out vast quantities of mined coal which is sold directly to countries such as China and Japan for electricity generation.

Anyway I'm surprised that we have not had an RNS today keeping the shareholders informed of the apparent progress with this project.

I should try posting something interesting and informative yourself then if you know so much, instead of picking on other people's posts.

The news in December 2019 was a concerning a JDA for a gasification of coal into fertiliser project.

This current newsflow sounds like it is the main project which is going to make some serious progress. This is a much bigger deal.