Lafayette IPO Update25 Jan 2025 21:38
Hi Everyone,
Lafayette have posted an IPO prospectus update on EDGAR: https://www.sec.gov/Archives/edgar/data/1936031/000165495425000736/lafa_s1.htm
As you all know, their website indicates they are going to use Quadrise technology for their bitumen that they are extracting from sandstone in Asphalt Ridge area of Utah, US. Their partners are Heavy Sweet Oil (HSO) and Valkor, both of which are owned by Steve Byle.
Since last time there have only been a handful of changes that I could spot, summarised below. Definitely refer to the original document if you want the official version:
- The second heater from Manufacturer 2 has not yet arrived, and is now anticipated on site end of Jan, and they will install and resume production of HSO 8-4 in mid-Feb.
- The well (HSO 2-4) that they previously injected water into on the advice of Manufacturer 1 still hasn't fully dewatered, and they are now anticipating this will be complete by end of Feb.
- Greater clarity as to what "full production means", which is now defined as "the expected Tranche 2 closing of the sale of an additional $2.5 million Series A Preferred Stock, at such time as we have produced at least 100 barrels of oil in full production (meaning that we are selling such oil commercially)
- They are produced about 140 barrels of oil so far, mostly from 1 well, and this has been hindered by the water issue. So this should pick up drastically once the new heater arrives for HSO 8-4 and HSO 2-4 dewaters. Fingers crossed for them.
- As you likely all recall, the production of 100bbl (which later was amended to "in full production") is required to unlock a second tranche of $2.5 million funding from an existing strategic investor.
- They are expecting to hit that full production by end of Feb, so that will be a critical moment for them! "The Company expects to pump out the remaining water and transition to full bitumen production by the end of February 2025"
So, there have been challenges, but they're steadily overcoming them. Deadlines have slipped a bit, but those of us that have held Quadrise a long time will be very familiar with that phenomenon!
Not sure if I remembered to include it in my last update, but they seem to have raised some bits and bobs of pre-IPO funding. Including $1 million in August.
Perhaps once these critical-path items have demonstrated the viability of the project, they will finally close their IPO out? Not sure, but all things crossed for them.
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