Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
Ops reports are positive, but the SP maybe dissapoints those who want to make a quick buck and flock off, so to speak. It's always an exciting time waiting for test results on a multi-zone well, particularly in this unconventional operation. Those with patience will be rewarded in the long run, I am quietly confident about that, even though i have not been crowing about it because the SP has been drifting downwards. Those who sold up, I hope they found something that made them the short term money they were not making here. Those who stayed in like me are in for happier times in the years ahead.
SP Down 20% on a neutral ops update? This is just manipulation. Wait and see what happens when an RNS of significance is issued. Hold tight IMO.
11% up without an announcement. I am guessing some LTH's have been spooked by the drop in SP to below the so-called resistance levels at various numbers. So they sold and made it drop further. Now they are buying back in. It's clever day trading behaviour, now backed up with AI I reckon. This freaky gain is some freaked LTH's buying back in. All of this is nonsense. Just hold and wait for the proof of concept we all know is coming. Shame on you for selling. Now you're buying in again, keep them and wait for the news, not the blues.
When the SP drifts lower I don't fret because I expect a windfall soon which will enable me to top up. There is no logic in being out of 88e ATM. Icewine 1 was a good result so this one is a good place to be as an LTI, IMHO. Hard to understand anyone selling right now because I anticipate next RNA is only 1 short wk away. When it comes it will have good news. Hydrocarbons will be in it. They were in the core, after all. That should take the SP back above 3p. Too early for my top up but good for my holding. If news of more than a mere presence of hydrocarbons comes next week, it will be much too late for my top up because this will fly higher than high. Why? Because it will have massive impact for the whole North Slope resource. GLA.
Today's news is outstanding. Two RNS's, both good, IMO. Last year's financials are all good: Increasing revenues and gross profits with reduced admin costs and loss after tax. The settled Farina loan and reinforcement of an already strong outlook. The consolidation plan is also good and we should be thankful that the BOD presented it in a clear and concise way. What is there not to like, apart from the "sell on news" reaction? I will buy more on this news.
I have been quietly observing the mood on this board for many months and am wondering why some (self-labelled) LTH's use the language and attitude of day-traders when they purport to be LTH's. So....clever speculative talk suggests that the SP is being played around with and traded for sport by some day-traders, share-swappers or background ii's. That has to be a short-term problem which need not be the concern of a true LTH, IMO. We own shares in an oil and gas exploration and development company that has found quality and commercially viable oil and gas and is developing that resource to make a proven reserve and considerable profits. Along with the profits come rewards for the shareholders. Today's SP is negligible in comparison to what it will become in the months and years ahead, so relax, chill, stop drinking too much coffee and be patient. That is what I, as an investor am doing. I look forward to meeting some of you fine people at the next shareholders meeting whenever that happens. Until then, hold tight. This thing is like a coiled spring. I have fastened my seat belt and am holding on tight for the space jump.
The rail industry in the UK is trialling drones as a method of carrying out inspections of infrastructure. Not just bridges, but items like station and depot roof structures too. This link is to Network Rail trials, but other rail service providers are looking into using drones too. IMO it won't be long before Strat Aero will be involved. https://www.networkrail.co.uk/drones-trialled-inspection-large-railway-structures/
What about the possibility of BP and Exxon both in secret bidding talks with FRR? The expression "highest bidder" comes to mind and I really like it in this context!
Yes, Theresa May in October 2017 at the Tory party Conference where she famously lost her voice....What she said: "Within a few hundred yards of here [is] a new research facility to develop the extraordinary material graphene, for which two scientists here in Manchester won the Nobel prize. And let me say this to George Osborne � you were right to back it as part of the Northern Powerhouse and this Government will back it too." Seems like she kept her word.
With Oil and gas starting to flow from new or reworked wells, there comes a time when there will be an update on the reserve status and a recalculation of the assets. At what stage will the reserves be upgraded? I ask because at that point, we will move from using words like "potential" and "inferred" to "probable" and "proven"....with associated implications on the commerciality of the whole field under Block 12. The timetable for reserve upgrades would be interesting to see.
Apologies to 88e holders, i am not meaning to dis them. Just emphasising that our SP is undervalued, as we all know.
One more comparison in this little series....I took a look at another share and compared with ours. 88e vs FRR. Before there are howls of derision, just listen up a moment: Their SP is 2.35, yet their production costs are likely to be in the range of $40/barrel and the porosity measurement which they have crowed about is less than our recently measured values. We have 14-15% porosity and they have 12-13% porosity in their prospective play, over less height. So I make this comparison because our SP is only 0.455 and theirs is 2.35. I don't think they are overvalued, and neither do they. So why isn't our SP up at least as high as 2.5? Yes, a factor of 5, undervalued. We are.
To follow up my post yeasterday on porosity comparisons with the facts behind it: Bakken: 5-10%, Eagle Ford: 4-15%, Niobrara: 10-18%, Haynesville:8-15%. These are big shale oil and gas producers in the States, and those are the published play porosity ranges for them. I have seen two porosity figures published in RNS's for recent wells developed by FRR in Georgia in block 12 and they are in the range 14-15% porosity. There are many many more parameters that control how productive shale wells will be, but we are certainly in the right ballpark. DYOR but I am very encouraged.
14% porosity, reported in the RNS, for those non-geologists among us, is a pretty good oil shale parameter, when compared to other (mostly US-producing oil shale) basins. The testing they will be doing over the following weeks will include importantly the Permeability. ie determining how much and at what rate the pore fluids can be induced to flow from these in-situ pore spaces. That means 14% of the rock over 100 metres thickness potentially is made up of hydrocarbons. Think three dimensions and you get an idea of how huge the capacity of the reservoir is.
By coincidence, the UK govt seconded their man from the DIT for a year to help an AIM company to grow. It would be good of the US govt to do something similar for FRR. Why? Well the AIM company SP rose by at least 25% since the announcement, for starters. :) If you don't believe it....take a look at that podcast Zaza was in the other day. The company was VRS. If they can do it for the first time in the history of AIM, why can't FRR do the same with one of Trumpy's boys?
Thanks for the very interesting research, fireflying. Applying a gel with the proppant makes a lot of sense in certain types of muddy/silty/clay formations, particularly when the hydrocarbons are coming from multiple zones with variable lithologies: interbedded sandstones, mudstones, clays etc. You have to be impressed with the innovation FRR are applying to suit variations in ground conditions. With good results, too.
Average production cost per barrel produced: Zaza didn't shout about it in the podcast. Maybe he should have, as someone mentioned earlier, because FRR's cost per barrel is outstanding. I looked it up in the Wall Street Journal and our $12/per barrel produced compares with the average UK price of $44, US shale oil av cost of $24, US non-shale cost of $21, and Russian cost of $19/barrel. Only three middle eastern Countries can do better. If the twits selling our shares start to realize truths like these they will be bricking it!
Yes, 5p it should be heading towards your namesake, rather than sinking into the oil that is flowing all around us. People are disappointed because there is apparently no teasing for it to sink. But wait, maybe it sinks because of the weight of something very very big and heavy on top of it. Once the heavyweight it revealed, SP will float up like a helium balloon IMO. :)
Incredible. I listened to the Vox Podcast earlier. All very positive for FRR (and VRS, which I am invested in too) Zaza was happy about the good flow results from block 12, outlined that we have a good profit margin and a one year payback time, so the incredible thing is the SP not rising. VRS...with good news rises healthily. FRR with really good news languishes? As Mr Mole correctly observes, the paradox defies reason. IMO a serious correction is imminent. The "potential" of FRR oil and gas reserves in Georgia is not JUST potential any more. These are oil and gas reserves which are becoming upgraded as we chat about it, by the hard work and sincere efforts of the guys working the field. Flows are being converted into revenue at commercial rates. FRR is a going concern, not some fly by night stock that you buy today and sell tomorrow. That's why I'm in and I stay in and wait for the inevitable rise in SP due to FRR being a high quality stock.
I completely concur with your view that the battery business is a big one, if not the biggest for graphene and VRS, IMO. Tyres will be some bread and butter, but batteries...that will be caviar and smoked salmon.