Member Info for dustofnations

Lafayette/HSO are hoping to get RBL (reserve-based lending) funding to develop the full field plan, and if that is not achieved, then they will attempt to to raise financing from other sources (equity, etc).

Clearly, the current pilot phase is absolutely critical to providing the necessary data and proof to RBL providers and the markets more broadly that the project is viable.

I hope that MSAR will play a significant part in the success story — I believe it's the key to unlocking true value.

IMO, the companies to keep an eye on are Trio Petroleum Corp ($TPET) and Lafayette Energy Corp (pre-IPO but already providing funding).

I wrote extensively about the connections between the above mentioned and Valkor/HSO on the Quadrise Shareholders' Forums if you are interested, but Lafayette even have an option to rename to "Heavy Sweet Oil Corp" if/when the farm-in agreement with HSO is finalised.

BTW, Trio has been picked up by Reddit's /r/pennystocks if you search for 'tpet'.

Not sure what you are expecting. There are evidently enough existing holders and market makers willing to sell their HVO holdings at share prices 25-30p range.

Hence, buyers have been able to continually hoover up the liquidity in that price range.

A related thought — the 3% threshold equates to about £5.5 million these days, so quite high. If the mystery buyer is a new entrant then it may take a while to go over the initial disclosable limit (if they wish to).

Around £2.5MM in those chunky late-reported trades, which look very similar to those we saw yesterday also.

Looks like the continued accumulation of the similar sort of pretty large round volumes of shares we saw yesterday. I suppose if it continues it'll reach a discloseable threshold at some point.

Please consider giving a thumbs up and reshare of the following to increase visibility/reach:

‣ https://www.linkedin.com/posts/jason-miles-b9b631b_what-does-it-take-to-turn-a-groundbreaking-activity-7204036732260892672-40HS

‣ https://www.linkedin.com/posts/quadrise-international-ltd_small-cap-movers-quadrise-blooms-on-client-activity-7204067081753899010-A5ts

The latest RNS is about adding a new product category to hVivo's HCT service offerings (namely, Omicron HCTs).

The fact a customer is paying for it is a nice bonus, but essentially not the material part.

In recent times, only extremely chunky deals have been announced (e.g. £16.8MM RSV, £6.3MM HRV).

Search for Sparkle Power

https://www.investegate.co.uk/announcement/rns/quadrise--qed/proposed-placing-subscription-and-open-offer/8093680

https://www.investegate.co.uk/announcement/rns/quadrise--qed/interim-results/8093678

Yes, I am more than aware of the problems those countries suffer from, but I try to avoid writing about it in a way that would make Quadrise and certain keywords appear together in a search.

Wonga, I think that's broadly the story for South America in Quadrise's history.

Inarguably one of the regions that would benefit most from Quadrise's technology given the massive overproduction of residuum, lots of oil-fired power stations, lots of problems with bad environmental performance, etc.

Yet, also so utterly dysfunctional that it's very difficult to execute any projects.

IMO, that is why Quadrise are now mostly targeting private entities like Sparkle Power where they are not at the whim of purges caused by the political cycle.

Maybe Mexico happens one day, but do not hold your breath...

For MSAR Classic you need to use a residuum material that comes out of the bottom of a refinery, or a natural heavy bitumen material (like in Utah).

Put another way, the input into MSAR Classic should be a material that is exceptionally cheap because it is intractable to process using conventional refining technologies.

Hence, MSAR's economic advantage is generated in part by removing the need to dilute the residuum with distillate fuels (i.e. value of that obviated distillate proportion). There's also a smaller advantage derived from the uplift in combustion efficiency.

HFO ideal for testing of MSAR Classic because it is easily available worldwide. But, MSAR Classic's aim is to displace HFO. That is, using HFO in MSAR Classic offers modest financial benefits.

[To clear up an anticipated area of confusion, bioMSAR's economics are very different, and hence HFO is adequate as the conventional energy source.]

Onto Morocco...

Morocco no longer has any active refineries. The SAMIR Refinery closed a few years ago and has not been reactivated. Unfortunately, it has become embroiled in a protracted legal and political battle, which appears unlikely to resolve in the foreseeable future.

Hence, the remaining plausible options, in my opinion, for commercial operation seem to be:

1) A refinery installation like Cepsa San Roque or Cepsa Huelva (just examples); emulsify residuum at the refinery; export to Morocco as finished MSAR.

2) Use of a bitumen terminal/marine terminal/fuel terminal to import low-cost bitumen-like feedstocks; emulsify in-country at the terminal to MSAR.

SemaphorRed: Morocco hopefully also enables another major domino to fall — a permanent, commercial-scale hub for MSAR production (TBD, but could be a refinery, a bitumen terminal, etc).

Some might say "fall again", as we had an installation at Cepsa previously.

It's been a long and hard battle back, but I think we're finally getting there...

Once that hurdle is over, subsequent customers should be easier to onboard.

Wazaaa — I have long since given up trying to predict Quadrise timelines. I believe they will succeed, but that it will required continued (im)patience.

That said, I do agree entirely with the thrust of what you are saying. £1 per share would comfortably put us onto the FTSE250, and I think people are not sufficiently factoring in the level of dilution that has happened over the years.

Anyway, it will be a nice problem to worry about if/when the SP gets anywhere near double digit pence, let alone triple.

Probably some expectation management needed if you consider the scale of some of the companies with valuations at that £1.7bn mark (assuming we continue being UK-listed). Not saying impossible, just trying to be realistic.

SemaphorRed — I think the bottom entry is something unusual/temporary relating to a huge rights issue: National Grid Nil Paid Rights (NGPR) and probably should be discounted from any comparison.

PharaohRocher is obviously theorising about what may be happening behind the scenes to explain the delays.

Fantastic update from Chief Engineer Brian McGregor on LinkedIn — the HSO and Valkor team have begun downhole heating to liquify bitumen immediately around the borehole. That means that first bitumen production shouldn't be too far into the future.

https://www.linkedin.com/feed/update/urn:li:activity:7201638381171187712/

AIUI, YM does meet his own expenses, as he's based in-country most of the time, so he just hops in his car and drives over.

Great points and context, Whiskyman01 & semaphorRed — saying "no warrants for you" and getting no commercial deal is infinitely worse for the company and shareholders than 12 million warrants and our first commercial deal.

For some context, it is also worth looking at the formula used — which I think is a very fair one.

"The Conditional Warrants will have an exercise price of the average mid-market closing price of the Company's ordinary shares over the five-day period ending on the date prior to that on which Quadrise announces signature of a Commercial MSAR® Fuel Supply Agreement for OCP"

To paraphrase: when the commercial deal is announced, YM gets a warrant strike price of the average SP for the 5 prior days.

That means the benefit he reaps will be (roughly): post-announcement SP minus the pre-announcement SP[1].

----

Example (random numbers):

Post-announcement SP = 5p

Mean avg of previous 5 days of SP: (3.1p, 3.0p, 3.2p, 3.1p, 3.3p)/5 = 3.14p strike price (~£376k).

Immediate benefit to YM per share: 5 - 3.14 = 1.86p.

Seems fair to me, as it focusses YM's discount on the benefit his work delivers. Of course, he can wait to exercise the warrants until some later time, just like anyone who holds an option-like instrument.

Corrections on a postcard!

[1] The averaging is just to eliminate day-to-day trading noise on the SP.

Yes, it has been made clear based on the Q&A at previous AGMs.

AIUI, Younes has been working the entire time on a contingency basis for (i) warrants, (ii) a modest royalty.

The warrants were provided, in part, based on feedback from shareholders that we would like to incentivise him to move as quickly as possible and have some "skin in the game" in terms of coming onto the shareholder register. A couple of investors brought this up at an AGM perhaps 3 years ago, IIRC?

Others can confirm if their understanding is the same, I am sure.