Member Info for CF73

Remember ZM said that wells might have capital requirement of $3million but produce $60million over their life.

That's a 20 x bagger.

Who Supa Major's going to say no to that?!

...let's see what a BH farm-in/JV could do for the FRR share price :-)

...and now soon to be announced...

Means that not only have BH not been able to not any more detail to the MoU but Exxon on hold till sorted, I'm guessin

regdik, you've just killed it LOL :D

This is now getting really interesting!!!

Wolf, thanks for your considered responses.

I can take constructive criticism, not a problem. But it has been the case that a) I have tried to post constructively and been dissed for it myself, and b) that some people who talk down the company are not in the same boat as you, I, and others. These folk are hijacking the story of misery and discontent here for their own extremely short term interests. I am happy to hear you and others out, folks that I know to be genuine. But there are some immoral bags of shiite who come on here deramping for their trades. Please don't count my attacks on these people as my not handling constructive criticism.

If anything is unclear or lost in translation, folks will have to excuse (just typed this sitting in a moving car).

Good luck to all the genuine folks!

Financing current operations
Current operations are at the moment reduced to conserve funds, but we are approaching a point where more funds are required but PREM have not specified where that will come from.
Some have suggested from the sale of our ARCM stake. But this remains to be seen.

Yes, a risk. Am confident will be sorted, but until it is, it remains a risk.

Financing working capital
Not sure if you mean for PREM or Newco. But if Newco, then that relates to the $6million being discussed. We do not yet know how this is to be raised, what mix (i.e. Debt, equity etc.) and if all of it will be. GR sounded confident. But need more detail.

Unknown risks

The political winds potential change
While initial overtures appear helpful, it is only concrete news and progress that matters. Can the government deliver on promises and pledges? One such pledge seemingly from the mines and minerals minster about supporting us at RHA. Will he come through with that? Thus sign-off is inextricably linked to our sense of the prevailing political and business climate.

Could there even be an eventual worsening of the political and business situation? No one can every say for sure. But no where is necessary stable, you only need to look at the UK right now.

Can RHA actually mine to profit.
This is covered above.

My view overall:

The risks are, to a large extent, already factored/baked in to the Share price – how else are we at £11million?
It’s important to discuss them. Ultimately, there is no escaping them as they’re already baked in to a large degree.
For me, Newco presents a significant opportunity to unlock value at present suppressed by the situation PREM is in.
Simply, the upside from here is considerably greater than the downside. There are positives in the last few days, with GR converting loan to shares; with KME accepting shares for their assets.
People need to come to their own conclusions regarding the risk/reward balance here.

Attributed value upon IPO

I have discussed a possible indicative value based on the information we have to date. This by way of the KME buyout/integration, with a valuation of their assets at $4million, with shares representing potentially 20% of share capital of Newco.

Naturally, this is not concrete. We will be able to say a lot more information emerges about the plans. All we have for the moment are the initial RNS and subsequent webinar.

Financing the $6 million

$6million is the proposed amount. We cannot be if that amount can be raised in full, and what the mix will be (i.e. Debt financing, equity etc). Or if that exact amount isn’t raised, what that will mean for Newco (or for PREM for that matter).

But if it is raised, then it provides the money we need for the 18months following IPO/listing.

A risk? Yes, of course. But for the moment, it is a proposal. We wait to hear more.

Receiving sign off from Government

RHA sign off remains unresolved. It remains a risk, especially if Newco happening is predicated on this being resolved. Recent visit to the site present a positive picture. The authorities are interested and supportive. But what does that exactly mean for RHA?

We should hopefully find out soon.

New management to guide the new company

This is a risk as we do not know necessarily know enough about them. But as others have said, we are bringing in house expertise we would be paying for otherwise, expertise that could potentially help to make significant inroads into the respective programmes of work. Given that till now, PREM has in many folks’ eyes not delivered, new management should be seen as a crucial clean slate, one where we know there is incoming experience and expertise.

We wait to see.

Bringing RHA to profit

So far not clear how far off we are from profitability. At Dec 2017, grade not good enough, though RHA Plant was exceeding throughput targets. So we know plant working fine, but it is the grade we need.
Also, still more work required to define the resource. The recent Barra Report only presented a very partial picture. We will need more information and ultimately will only be able to judge when we are operating the mine again.

Fascinating how any constructive sensible posting exploring prospects and opportunities going forward is referred to as ramping. How even mentioning the challenges, the issues and past history etc makes no difference.

As I said the other day, it seems that unless you're cursing GR and the company you're ramping.

From consensus opinion, would be too expensive/costky buy out block 12

Sticking with Exxon, though a buyout gym anyone would be fine by me

How much that cost them??

No

Was meant to say, immense gratitude from ME tedoby,

Keep em coming

Remember, he's effectively set sights on material transformation by Christmas :-)

Exxon in just - just - West Georgia?!?!

That article with Exxon Rep pointed quote clearly to the entirety of Georgia and while after both Oil and Gas, they're especially interested interested in the Gas :-)

Immense gratitude from tedoby. A grand contribution, as always!

Zaza has said several times that he is moving to sort this "...sooner better than later.", his exact words (you can switch 'rather' for 'better').

He wants to get on with whatever they've got planned.

For me and many others, it's Exxon, and it's this month. But as always DYOR.

Agreed Majors aren't factored in as yet. But we have BHGE on board now. Even if we don't hear of the other, details of the proposed plan with BHGE, particularly informing us of the specific programme of drilling, numbers and values etc, will have a huge effect on the SP.

We also await flow rates. If the other Super Major doesn't come forward, we can release that info and proceed with BHGE. As it is, believe we'll be hearing this month about the remaining Super Major.

Getting closer all the time.

Good luck all!

...or STON...