Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
What’s the upside potential of DELT on success in both drill, given that they raise cash via placing to cover drill cost (dilution).
Any broker or research report?
RedBeard
The reason not to flow test BFF is due to uncertainty from JV partner funds. Also, every company do dilution, and they would need to raise funds for operational programs.
Since, Longhorn will be producing oil, and generating cash revenue sometime this year, therefore, very likely, the NWC will be covered from cash revenue from Longhorn.
At the moment, main focus on flow test, to derisk the project, and create value for shareholders. Any success in flow test, will be welcoming news for the market.
88E will be testing several zones in Feb and results to start from March on wards.
PANR has flowed oil from all zones, and 88E is also expected to flow the oil at commercial rate. Drill intersected better than expected reservoir quality
ConocoPhillips Makes Final Investment Decision to Develop the Willow Project.
https://www.businesswire.com/news/home/20231222593278/en/ConocoPhillips-Makes-Final-Investment-Decision-to-Develop-the-Willow-Project?utm_campaign=shareaholic&utm_medium=copy_link&utm_source=bookmark
Probably, it won’t make a difference. The only thing that makes a difference is flow test results. If they flow the well, that will be the first commercial discovery for 88E and will have positive impact on market valuation … it’s all about market cap rather than shares in issue
Oldwiser, number of factors;
1. They might need more funds to fund additional land.
2. They may be aiming to sell their assets (potentially to PANR), once they manage to flow the well at commercial rates
3. They would prefer to diversify their portfolio
4. Fully, focus on Pheonix, and then further land acquisition?
Those 320m new shares isn’t too much compare to number of shares in issued. Probably will take 5-10 days to absorb new shares.
Now, the main thing is flow test. If company flow the well at commercial rate, everything will be forgotten.
Why UPL is valued £45m without any assets or any drill or cash. Whereas, 88E have diversified assets, and about to test the discovery well
I am not targeting UPL, but just thinking rationally.
Like; if UPL did 10-20 baggers in less than a year, why can’t 88E do a multi bag on commercial flow rates.
It’s a matter of time only
Open blue, and market is taking this as a positive development. So, the company have enough cash even post-flow test.
The positive thing is, Burgandy are committed to the project. No more question about project integrity or so