Member Info for Breq

Can anyone let me know ?
Is the theme here that Southern's gas fields have produced about 15% of gas in place. They reckon with modern horizontal wells they can produce another 15%.
If so that looks like about 1.5b c.f. or 250mboe.
Massive for a £40m cap company.
Am I looking at this right?
Thanks.

And me B7. I have 70,000 reasons to thank Jimmy.
Hoping for several times that again.
Thought for the weekend. What if the deep prospects prove good. We could be looking at 7Tcf all in. That could be 1bcf a day production for 20 years giving cash flow of $2-3bn a year.
Only dreaming at this stage but maybe Chariot could become more than just a unicorn.

Thanks for correcting me. Still a good vote of confidence and support by not requesting any other change in terms.

This is better than expected. On 30 March they announced a change in conversion price from 15p to 5p. Today they state only the maturity date is extended. That 's a good sign of commitment and optimism by bondholders. Also the bond meeting was set for 21 April. Suggests news between now and 21 April which would make the lower conversion price look too much of a gift maybe.
All speculation. DYOR as ever.

Just for some background in case anyone interested - trademarks only work in the same area. So if Adidas have a pair of shoes called UltraBoost, I couldn't launch a pair of golf shoes with the same name. The idea being someone might get confused between the two.
But I could launch something totally different, e.g. a microscope called UltraBoost.
So Adidas couldn't stop a bitcoin related product called UltraBoost, although a good lawyer might argue they could if they had launched a NFT based on their UltraBoost shoe.

Apparently over 60% of bitcoin mining is now done using the ASIC Boost ( not QBT's) patent of 2015. This patent speeds up mining by about 20%. QBT's ASIC Ultra Boost patent ( already filed) and their Ultra Ultra Boost patent ( being filed any day now) if taken up at the same rate, would result in approximately $ 7.2bn of miner revenue every year.
What royalty would the miners pay QBT ? 20% 25% of $7.2 bn. We can only guess. Let's hope QBT's 2 patents can speed up mining by at least ASIC Boost's 20%. QBT have alluded to higher speed increases than that.
As ever DYOR. We're still waiting for data so AIMHO.

Wow FigTreeHarry that's quite a question. The newest Bitmain miner coming out early next year is supposed to cost $20,000.
The thing is, if QBT have worked out how to make the bitcoin algorithm an optimisation problem - and so ideally suited to quantum computing - then we could be looking at an entirely new level of miner speed. Even hundreds or thousands of times quicker than the faster classical miners.
What would a mining company pay for that ? If it was 50 times faster they might pay $1m on the basis they would earn on average 50 times as many bitcoin a year from that one machine.
But another really interested thing is at least one quantum computer company is claiming that the world's fastest classical supercomputer uses as much electrical energy as the Niagara Falls can produce. In contrast their quantum computer can be run off a wall socket.
If QBT can link into D-Wave or another's quantum cloud service then the energy use could be much much lower as well as the mining rate much much higher.
We start to get crazy figures if QBT really have created a quantum optimisation algo for bitcoin.

Anything over 25% faster would be compelling but Prof G has been alluding to much higher results. Maybe there's a formula. Every 10% improvement is worth £50m of market cap increase in the basis of $12bn of miner revenue per year. Even capturing only a tiny percentage of that through direct mining or chip design licensing would be that kind of market cap result.

FigTree, yep you've worked this out already. Prof Gardin is expecting a serious increase in speed. With 2 verifiers it's difficult for the market to do anything other than just accept the results and adjust the market cap accordingly. We're in a weird position of the market cap increasing many times within a day of two of speed results if they are as good as alluded to.
As ever all IMHO.

I like the fact that, as in the 11 March RNS, QBT are using two independent verifiers to look at the new ASIC chips speed. If the speed improvement over existing ASIC chips was marginal then there would be no need to mention this. I think they are expecting very material improvements as alluded to in recent interviews. Putting the independence of the verifiers and having two of them out there is a good way of setting the ground for the kind of results we could hear in a couple of weeks.
As ever DYOR.

That’s disgusting Professional. Suggesting investors are raming. Look it up. Truly obscene.

They won’t. That’s the whole point. It might go like this:
Buy shares at current price. Market cap of £2.8m. Adv find a project costing £30m producing £15m cash flow p.a. Shares suspended. Raise of £10m at 1p a share. Raise £20m of debt. So new market cap £20m. Shares double to 2p. Market cap £40m. Less than 3 times cash flow. Market looks forward to next deal.
Only question is will they do a deal. They sound confident in latest RNS.

What might happen is they find a project. Sound out investors and debt providers. Suspend the shares. Relist say 4 to 6 months later at a higher price. With a viable project and willing lenders Adv would be worth more. Equity investors would be investing post project not pre project like now.

Adv would bring the debt finance. Also, the team have contacts and experience. A large player will obviously want to divest to a company with experience so as to minimise later reputational damage i.e. if there were an oil leak or workplace accident. There aren’t that many experience rich teams looking to do this.

Both RockRose and Jadestone have done deals where no net cash was paid for a producing property. It all depends on whether a large company wants to divest. Can Adv also do such a deal ? Let’s see.

Er, the RNS of 28 Jan, stated the opportunities Adv are looking at are ‘suitable for debt and vendor financing’. So any equity raise will be targeted at a minimum level.

Er, Adv are fully funded, as stated in their RNS, for 2022. Appraising new opportunities will be done by the team who yes, as you recognise, are paid salaries. So to be clear Adv are in a position to evaluate and sign up to new opportunities. If these opportunities require a direct equity contribution or working capital then obviously a raise will be needed. As Adv are targeting cash flow projects, perhaps vendor or loan financed, then we can expect any equity raise to be kept to the minimum necessary.

Adv say they are ‘fully funded for the current calendar year’. So funded until end 2022.

Bill,
That 's the $bn question as we know. I'm modelling a $5 CPM. That's at lower end of the $3 to $15 CPMs widely paid as I'm assuming it's going to take a bit of time for ad agencies and brands to work out how to best use in game advertising. Should a brand advertise just after the gamer has scored a goal or just before they win the match?
I'm estimating 5 adverts per gaming succession. Each active gamer plays once every two days on average. So at 40m active gamers that's roughly $180m of ad revenue a year. That's not unrealistic. It's less than $5 a year per gamer. Bidstack's share should be about $50m in direct revenue.

Thanks Dafad. Good post. Azerion must be super pleased with their Bidstack deal. From the 17 Dec RNS, Bidstack are bringing 40m active gamers to the table. If they play once every 2 days and can be served 5 ads each a day then thats 100m ads a day. Which is about what Azerion currently serve pre-deal.
From RNSs to date we can maybe expect 80m active gamers by year end via Bidstack. The Bidstack deal could really support Azerion through 2022 post their IPO.