Member Info for BlackHopper

JJ knows the company very well and so it is enlightening to see that he does not mention the obvious. The revenue from Zoetic in 2020 will allow:

Further expanding of Zoetic
Development in Kansas.
Further oil drills
A proper development of the exciting Helios Project in Montana that has such a huge potential that i dare not even mention it !!!

He knows all this but does not say it. You will need to learn to read his posts for what they are... or you could just filter him. It will probably save you time.

This company has many projects but it is still a small and new company. At this time it need to focus all it's efforts on two or three key areas before it can fully spread its wings. In 2022 or 2023 the SP could quite easily be in the pounds but it is too hard to speculate that far out. I started to type earlier to shine a light on what an opportune moment this is. Right now. The earlier me would have had no idea how to spot it. I hope it helps.

There is so much here. So much. But yet still the SP is 9.5 and the naysayers will point to this failure in terms of shareholder value… and they are right in that. Simply put, at this moment they are right.

But they won’t be for much longer.

The introduction of the 6 million new share has enabled the Market makers to keep the SP below 10p for a few days. The price will turm. If you can get them at 10 or 11 or 12p I suggest you should. You will be rewarded and even if you want to bow out at 13 or 14 or 15 you will have made a good percentage.

But if you take a longer view and look at what the future numbers in Zoetic really mean for late 2019 or mid 2020 or even 2021 and factor in the other arms of the business then you will see why I am looking (again) for 50p and 60p and 70p and a MarCap of well north of 100 million. It’s not rocket science. You can do the math yourselves.

Jumping forward we now have a whole new arm of the business about to produce its first crop in a growing and exciting market. CBD is all the rage. Long term shareholders who had bought in the 20's were furious that the company placed at 8.5p in March to form Zoetic. You can read all about it in the March and April RNS’s. So why is now a good time to buy at 9.5p?

Well, we are growing our first Hemp crop indoors in De Beque Colorado and the process takes about 10 weeks. As per the April RNS, some of the plants will be grown to produce seeds that are very valuable (up to $1 per seed!, 500 seeds per female plant, still get 12g CBD oil as well…) and thus will need to e left a little longer to allow the seeds to form in the flowers. So let’s say 13 weeks. If planting was in early April then we are approx. 10 weeks in and so harvesting will start soon and our first crop of CBD can begin to be produced to make all the products mentioned. The RNS today talks about the initial release of a first wave of smokeable and chewable products aimed at a younger market. Chill will not be the only or even perhaps the main brand for Zoetic. I think the real action will start in a few weeks as health related products aimed at a more mature client are released under the Zoetic name. Today’s RNS is the very beginning of the beginning and uses CBD produced from purchased plants from that initial raise.

The base price of 8.5p was, as I have mentioned, a kick in the teeth for Long Term Holders. Many LTHs were furious. After years of waiting they have to endure a placing with many 60-70% down on their investment. Not good. But the company took the decision to act boldly as you sometimes have to in business. They had the long view in mind. They knew their Nitrogen/Hydrogen gas mix would add 30% yield to the hemp crop which equates to a big boost in CBD revenue and having seen that the gas mix was worth a lot more than Nitrogen alone they took the plunge.
In all this I have skipped the potential of the Kansas acreage that produces Nitrogen pure enough to use in food preparation, straight from the ground and where we now have 3400 acres rather than the initial 800. This could and should lead to significant further revenue to HNR in the future….

I am writing this for any NEW investors who are not very sure what they are DOING!! I bought my first shares about five years ago and I did not have much clue. I am still no expert but I have learnt quite a lot about buying and selling patterns in those five years and I have also learnt about pressure, how it feels to be down, how it feel to be up and the difference between dodgy companies and less dodgy ones. The big question if you are new to HNR is ... why is the SP 9.5p and is that a good price to buy?

The answer? Yes, it is a very good price to buy! The simple reason being that at the moment, there are 6 million new shares in the market and the negative effect of them being sold into the market is holding back any positive effect of people buying. People will be buying here because a) the price is low and b) progress on the Zoetic arm of the company’s business is progressing rapidly.

It is very hard to understand a business like HNR if you have not been in it and lived it for years like I and many other shareholders here have. The main negatives that are repeatedly brought up are the fact that the SP is near it's multi-year low and the company have failed to make significant revenue from a whole raft of its business arms. It's obviously good for you to enter low... you want it to go up. I think it will and in the next month we are very likely to see a rise from 9.5-13.5 or similar as we had in early May. Look back at the charts.

You should clearly read all the RNSs you can, but the 13th December 2018 is a good one to start and has a longer chairman's statement in it. Robert Price the founding CEO has a holding of approx 8.6% and is thus fully aligned with raising the SP.

Recent poor performance of the share price has centered around the East Denver project. In 2017, the first 2 of 8 wells came on stream to much fanfare and the SP hit 34p. However some significant dilution took place just after this and then it transpired that the company could not afford to drill the next 6 wells themselves ( I am compressing this ) and instead sold most of their interest in the projects for $5 million cash retaining only a 7.5% interest in the wells. This 7.5% will amount to 2-2.5 million this year but will drop as the wells decline over time. It's a significant amount of money but doubt surrounds the future of the projects and the ability to enable another 16 wells at the same 7.% under the same deal.

The SP drifted from the low 20's to the mid teens in late 2018. At this point no-one had event dreamt of Zoetic and CBD…..tbc

Ahhh JJ so refreshing! Costs, costs, costs and more shares. Never mention revenues do you?

Let’s remind and inform any unaware or new arrivals shall we? The companies initial RNS (March’s) mentioned yields in grams and a wholesale price of 3 dollars per gram for CBD. OSG has repeatedly posted the $360k revenue that gives from the first indoor crop of 10000 plants at 12g per plant. However we should add 30% for gas fertiliser boost and note they are harvesting seeds too.

Even a 50% seed crop of 2.5 million seeds selling at 20 cents a seed would generate another million dollars. The seeds could sell for up to 5 times this.

You are right about the start up costs though, which is why in the March RNS RP clearly states that the business would not be in profit until to wards the end of the year. However it will then be set to make a whole tsunami of cash in 2020. Maybe this will effect the need to issue new shares that you SO desperately cling on to.

RP owns 9% of the company. I work on the assumption he would rather not dilute his holding too much if he can. It would be a strange thing to do if he did not need to and I am sure this is why the company has suffered relatively little dilution over time compared to so many small companies.

Than heavens we are not AIM!!

I feel sure the company will use all the first indoor crop, coming in a few weeks time to make products. No wholesale flogging at low price. Let’s see how they do. You might get a nasty surprise. I hope you do.....buffets

As usual from JJ. Whatever....

Great to have this first staRt and the article on Market Watch that I have not yet read.

First beginnings with SO much more to come.

Chilled here

Themis, have you ever launched something like this?

Made the product, tested the product, refined the product, made the packaging, designed the brand identity and then set up online, made distribution deals all while growing more and developing other premium products in the background. Have you ever done that??

The market and shareholders are/were clamouring for an update. This is one and an appropriately timed one.

I wonder why you would be negative about that? Go figure....

Maybe you need to CHILL

people! It's time to sit back, relax and take a chill pill !

chris...I did ;-)

Attaboy Christchurch... don't let him bang on with his usual sh@te unchallenged.

The BoD have only recently aligned a supplier with a million shares at 10p to give them a vested interest in the companies performance and warrants issued during the Zoetic purchase have been sold. That's all.

Another £525K to develop Zoetic, the potential revenues from which JJ does not want to address and never mentions as figures in his posts, because he does not like to even begin to face the numbers that will come from successful harvests and sales.

All the while the ED wells produce. And yes, we need some other news. I'm sure the team are very aware of that!

The SP sucks as the sells are used to drag it down but the company and the big new project is coming along well we hope. There is no news to the contrary. Or do you know something secret JJ ??

Or will you reply by mentioning the past .... again.... and again. I invest for the future and you live in the past.

I dummied sold 40000 at 9.82 about 20 minutes ago so that is false

Even the most hardcore Oilers holding land in the US suitable for fracking must be looking at the global shift away from hydrocarbons in the coming decades and the tightening regulatory environment in the US that we can clearly see in Colorado. Rules will get tighter and greater in number making the economics of the whole process more challenging.

If you hold leases and are doing nothing you could easily be left with sod all in the near future.

I think this will work in HNRs favour in respect of their existing deal with True Oil and the other partners they have to facilitate a further set(s) of wells in ED. The site at 15/16 is pretty much state of the art and is the best that can be done with today's tech.

I don't think ED is over yet but we will not know about it until a deal is all wrapped up. I just think the global state plus US legal changes are going to effect everything and oil companies will be changing their mindset as we speak...

There you go.... you know a lot but you know nothing. Will venture nothing. It's very obvious you and your gang do the drip drip of small sell to inch the price down and then pile in at a low level. I'm sure you make money doing it but it shows how the share price often has little to do with the companies activities.

I asked you for CBD revenues.... nothing to do with costs. you never answer as another poster never answered, because the answer does not suit your storyline. I think few are fooled any more but the drip drip of the SP feeds their nagging doubt.

If Dante was correct you will be warming in one of the inner circles afore long.

Update soon on product delivery, first sales, website, outdoor planting complete, ED flow rates and the extra 10%..... and maybe even some nitrogen or further ED development.

just pleased to buy for less than the Schraders.....thanks team..

I wondered how long we would have to wait.......

Two questions JJ. When do you think the first indoor crop of hemp plants will be harvested and what is you rough projection for CBD related revenue for 2019?

Since you like to post regularly on this share that you are so familiar with, the board here looks forward to you views....

Oh A187, thanks for that!! Based on what you have written you really should sell!

It's useful to talk about the past when considering a share, but the real trick is to see the future. A lot of negative posters here cling onto 3 things. Failed projects, RP/BoD placing share to maintain 'lifestyle' and blaming 'Rampers' for losing other people's money. i see you have me down as one of those.

I only come on this board to express my interest in HNR and I have been honest about the fact that I am not in profit on HNR. If I could arrive only now, and buy all my holding right now, I would be VERY happy, but it does not work like that.

If the company have misled people, or if investors such as myself have been naive, it is perhaps only in thinking that Montana would be easier to develop or DTU was about to become a revenue generating business. I accept that these projects will not make money in the near term, but I do not accept they are 'dead' as has been stated.

The issues with Renegade in ED are well known and not the fault of RP. WD was not the finest hour. but again, these projects are not 'dead'. However, the current share price and range reflects the recent activity around Zoetic and I think any mildly intelligent person can see that this is a very different business and that it ties in well with Kansas.

If I am frustrated about one single thing, it is the pace of Kansas, but the eventual value there is very exciting and i cannot see how it will not be released. Just a matter of when.

In the meantime, the 'when' of Zoetic is much easier to see and the revenue will dwarf ED. I can see the market is cautious and 'unhappy' and in some ways I would like it to stay that way so I can get to a million shares. I have been steadily increasing in recent days. These prices will not stay forever as Zoetic starts to bear fruit. It's a totally different proposition for obvious reasons.

So you, and other negative types, can bang on about the past or be as rude as you like. You can cast aspersions about the team and RP, you can sling mud at knowledgeable posters who share their thoughts, but you will not be able to stop the coming harvests. The figures used are the baseline 'wholesale' figures. HNR will get a lot more than this.So real revenue is coming and the SP will reflect this.

Do what you like and say what you ant but this will still be the case.

New shares entering market tomorrow... let's see what happens?

Time for an update methinks..... outdoor all in ???

What do you stay for then A eh? Laughs??

If you cannot see what is coming then I’d advise cutting your losses....or maybe you can see....

I suspect there will be more shares in issue by then...well there will be. But SP of 50p Q3 2020.....

Hi Lloydie, I know you are down my friend! AA I’m sorry you are down too. However, I assume you have not given up on HNR since you are here. Now would indeed not be a good time to throw in the towel.

I assume also you are aware of all the projects and the past mistakes or unfulfilled hopes. What makes you excited about HNR?

I asked a lovely poster what he thought the base case revenue from Zoetic alone might be this year and he declined to answer. What are your thoughts?

I am genuinely interested.

I have a feeling that revenues over 9 months from now (I use that timeline to include seed) will far outstrip the base case wholesale figure by 100-200%.

I also feel the Mcap in mid 2020 could be over 100M.

This will get people going ;-)

Typed on phone .. hate it

Good to see people sniffing around for what is undoubtedly a bargain in the knowledge that the value of this share will be so much higher in the near future.....let alone this time next year..... how many have you got Ariel???