Chairman's statement9 Feb 2019 16:44
Any new or casual visitors who may be enjoying the board this fine Saturday and wondering what's going on.... read the chairman's statement from the 13th DECEMBER RNS.
After a long wait, the company is very close to having a 7.5% free carry on 8 wells (2 older, 6 new) at its East Denver site. This will provide new funds sufficient to cover the companies running costs. The company has no debt or dodgy finance. Other smaller revenue streams exist too. Some think the IP (initial production) flow rates are priced in but I do not and would urge you to consider that if the 6 news wells achieve approx 5000 bopd and thus match the 1700 bopd IP for the first two, it will surely make it very likely that True Oil and others will want to partner with us again to achieve a similar multi-well pad operation in the area. Our chairman has alluded to this. So successful IP rates are very important in that way, as well as the immediate $$. The whole operation is very slick and professional and the use, rather than flaring, of the gas produced by the wells is a big environmental tick with the local licensing body in Colorado (COGCC)
The next big news will be the success or not of the Cannabis Trial with District 8 using the incredibly pure Nitogen gas from our recent Kansas operation over the summer. Read the RNS. The organic certification of the Nitrogen/Hydrogen mix from the Kansas well will be very very significant. The gas is clean. It is 99.6% Nitrogen with trace Helium and Argon and then a very tiny amount of Hydrogen. That H2 is really important as the chairman explains. The gas must be 'organic'. It has not been anywhere. It is not manufactured. It has no nasty man-made chemicals in it and no naturally occuring hydrocarbon impurities. How can it not gain organic certification???? I can't see how you could argue against it.
The Argon content of the gas, if we are able to separate it, would be very, very valuable too as it will be naturally depleted in AR39 which is found in atmospheric Argon. All Argon is not the same!! Infact, there are many isotopes of this expensive and useful, and rare, element. This could be a significant bonus if producing large amounts of gas from our acreage.
Since finding the gas last June, the company has increased its acreage from 800 to 3200 acres and may yet have more. That is how much they like it. The wells are vertical and not costly to drill like the ED oil wells and require no 'fracking'. Even the Nitrogen on it's own is worth 3 times natural gas!!!
So whilst you may be wondering what can possibly lift the share price from this low and depressing level, and some persuasive posters on here make cases for little to get excited about going forward, i suggest that there is a GREAT DEAL to get very excited about and I also suggest that were you buying this for the first time, then you would have immaculate timing.
Thanks Fadec for the Geology note and Genty for Twitter-Shout (I blushed ;-0 ) Have a great weekend
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