RE: JS7 Completed18 Mar 2026 15:45
presenter advised of much more uncertainty in company operations and prospectivity than previously revealed:
1. a state government which is inept at regulating mining operations (no experience); whose officials 'hate' the mining industry (according to the presenter); and which is distracted with many other major issues, including a federal criminal investigation of the governor for widespread public fraud during his administration. presenter stated that regulations essential to company and industry operations have been on the governor's desk for months with no action, and with no timetable for action;
2. property ownership is haphazardly distributed amongst numerous entitles - federal and state governments, multiple indian tribes, and private landowners. with no integrated regulatory framework for obtaining required drilling sites, permits, and infrastructure easements/rights-of-way, each land interest holder must be approached/contracted invidiually, effectively granting each a veto over drilling and infrastructure siting;
3. urgent need for 3d seismic, but no regulatory framework allowing same or prescribing manner of undertaking, which circumstance is not expected to improve for at least two and, more likely, three years;
4. manufacturing partner chart, responsible for building separation plant and transport /delivery infrastructure, is now in the throes of being acquired by mega firm baker hughes thus creating tremendous uncertainty as to product design, reliability of production and delivery deadlines, and personnel contacts;
5. no pressure communication between wells, suggesting each is a producing island. company is drilling 'blind' (according to presenter), apparently merely lucky to strike resource each time. if subsurface is a pockmarked collection of gas bubbles rather than a single large reservoir (as previously intimated by company), economies of scale will be difficult, if not impossible, to achieve, particularly given #2 above;
6. no reasonable prospect of h4/h3 separation technology within the foreseeable future, rendering h3 monetization a mere concept rather than an economic asset.
note also that taj recently sold to the company's principal investor and lender a large tranche of personally-held shares at a substantial discount, and installed a lender official as a new board member. the need for these changes, and the peculiar terms of the **************, have not been explained.
the foregoing suggest that the current share price is inflated compared to competitors, at least one of which is already in production. caution warranted.
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