Member Info for dustofnations

> Where did I say he was to blame for the delays? Don't put words into my mouth.

Erm, when you said:

> And the reason it expired was due to failure to "perform" within the agreed timescale.

Younes has been paid literally nothing yet, yet he's kept the project going despite several huge hurdles such as a full COVID lockdown, the customs debacle, multiple pump failures, at least two major management reorgs, disbanding of the client's innovation team our project was assigned to, etc, etc.

I think he's done a good job keeping it on the rails, and I'm not going to moan if he passes the major milestones required to achieve those warrants. Remembering as well that he will still have to pay to strike them.

None of us are pleased about the length of time it has taken, but the idea YM is to blame for the delays appears untrue, otherwise they would not have taken these steps to renew.

2p, or not 2p, that is the question.

I'm relieved we're not trying to run the gauntlet with shipping fuel over from QRF again.

I am somewhat surprised how little this has been picked up by the industry media, as we're getting close to cementing a long-term deal with the largest phosphate company in the world. That alone would be transformational for the company.

One has to wonder whether those institutional investors who provided money at the fundraising have used the opportunity of today's high trading volumes to exit stage left.

I am very pleased with today's RNS, and although it's not the final word on the matter, it is a large step forwards which is always to be appreciated, given the notable leaden-footedness on other key QED projects. It demonstrates they can make good progress.

A bit more info & a great pic:

https://www.linkedin.com/posts/brian-mcgregor-p-eng-11914515_the-uintah-basin-at-night-recovering-the-activity-7199433771614441473-upFr

Active drilling of HSO 2-4 is now underway according to Data Explorer. Shouldn't be too long until that one is also successfully completed. Great to see swift progress being made.

HSO 2-4 underway — https://www.linkedin.com/posts/brian-mcgregor-p-eng-11914515_rigging-up-on-lafayettehso-2-4-well-2nd-activity-7198120646285959170-KQ4z/

Nice summary of the status quo. POLB-001 really looks like it could be a game-changer and has the chance to become a standard adjunctive therapy for immunotherapy with high CRS risk.

I doubt Jason would be foolish enough to take a public dig at a customer. There would be literally nothing to gain by it.

He's trying to get into decisionmakers' LinkedIn feeds and bring some attention to Quadrise. Taking 5 mins out of his day to do that is perfectly fine, IMO.

Here's a link to the copy-pasted content below:

https://www.linkedin.com/posts/jason-miles-b9b631b_the-coming-green-energy-transition-is-inevitable-activity-7198291572486983680-gF6B

Drone video of HSO 8-4 at nighttime in Utah

https://www.linkedin.com/posts/brian-mcgregor-p-eng-11914515_nighttime-video-of-our-first-well-in-the-activity-7197972700047237120-EiTm

Just to be clearer on what that implies:

When you are *heating* a well using conventional huff 'n puff, there is no oil being extracted. So 0 bpd. Then you switch to extraction, which results in some high number of bpd that quickly diminishes as the ground cools down.

Important context: I saw from HSO's plans that they are considering switching to steam flood at some point, which means they inject steam constantly from a central well, and then continually extract from multiple surrounding wells (you've probably seen that from the presentation HSO gave at DOGM Board, with the proposed future "hex shaped" clusters of wells with one central well, surrounded by several extraction wells).

Undoubtedly, during this pilot project they will be looking to figure out what the thermal characteristics of the formations are.

For example:

- how much thermal energy do they need to inject to produce liquid bitumen;

- how long does a well produce for, and what does the production curve look like (i.e. related to thermal conductivity);

- how far out does the heat radiate, and does it match computer simulations/modelling;

- what is the ratio of heating time to extraction time;

Etc etc.

So, plenty of hard work will be required to determine whether it's going to be financially and operationally viable, but it's a fantastic first step to get the drilling going.

Crownos — HSO are planning on doing huff 'n puff. The inject extremely hot steam down the well to heat the target formation and liquify the bitumen; that liberates it from the rock/sand material it's trapped inside — the bitumen can then be forced to the surface as an (extremely hot) liquid.

However, heat doesn't travel very far from the heat/injection source, so you need lots of wells packed closely together to make the project economically and operationally viable.

As some context: huff 'n puff is a cyclical process. After heating the well, they switch exclusively to extraction from that same well; the ground will cool over time and the flow rate drops.

Eventually, they switch back to the heating phase. And the cycle of heating/extraction continues until it is not economically sensible due to diminishing amounts of material for each unit of heat invested (e.g. nat gas).

So you can think of all the wells as a chequerboard that they are continually moving between heat and extracting (hence the name huff 'n puff). And that new drilling needs to be conducted regularly as existing wells are exhausted.

Credit goes to PharaohRocher who explained the matter to me.

@Crownos - the shale formations HSO are targeting are not waxy (sweet, low wax, very heavy). Other projects in the region with conventional reservoirs *are* waxy, which is likely where the confusion is coming from — they aren't tapping the shale formations though.

As you guys know, my opinion has always been that Hoodoo's approach has been highly cynical: trying to waste time and money in order to extract concessions out of Heavy Sweet Oil. My research has indicated that they've tried every possible avenue to disrupt and delay with filings, appeals, etc.

Amongst which, appeals/filings/proceedings to: DOGM, DOGM Board, SITLA, SITLA Board, US Department of the Interior. No doubt state and federal court in due course, if they decide to continue trolling.

Hoodoo's business model appears to be to buy up large tracts of mineral leases — ostensibly to develop — in reality, it appears to be the exception rather than the rule.

Instead, my view Hoodoo are 'lease-squatting' land that looks like it will attract genuine companies at a later date, so they can charge a royalty without taking any real risk themselves (or force a JV where Hoodoo just contribute the land/mineral rights). I'm sure they Hoodoo offer some surveying and other data, but that frankly seems of very limited materiality.

[I coined the term 'lease-squatting' up for the sakes of illustrating the issue, as it reminds me of domain-name squatting.]

From the Utah state's perspective, the majority of their income derives from royalties on the minerals *produced* (e.g. $x per tonne/bbl/etc). The fees for the lease itself are usually not especially high.

Economically, Hoodoo's model is a kind of rentseeking, IMO.

Heavy Sweet Oil threw a spanner in the works by bypassing Hoodoo — they acquired leases on the same acreage for bituminous/asphaltic materials, and *not* the liquid hydrocarbons that Hoodoo leased in the expectation that would be what their potential "clients" would be looking for.

You'll see a more comprehensive layout of some recent information I discovered over on The Quadrise Shareholders' Forum as I can't post inline images here, but it seems quite clear to me as a non-lawyer that the SITLA leases define the substances separately.

Naturally, that won't stop Hoodoo's lawyers wasting everyone's time and money by looking for a tiny hole to crawl through.

Reminder that the nominal dividend should be paid out on 20th May (0.2p per ordinary share).

Typo: It has been updated *since* I posted, yes.

WongaFC: It has been updated I posted, yes.

Hi @Si_Derman, that website appears to lag significantly behind the official data on the Data Explorer (which I've linked a few times). However, I completely agree that the official website is extremely cumbersome to navigate, which is why I've been posting occasional updates instead.

There are currently 2 approved Heavy Sweet Oil (HSO) wells, of which one is now in drilling status. That other website seems to show only 1 currently approved as of now, which is inaccurate.

A reminder that "New Permit" means "You submitted the application, but no decision has been made yet".

Useful Screenshots:

- HSO Wells: https://ibb.co/rsG0871

- HSO 8-4 specifically: https://ibb.co/NrQw4Ls

Pilot project well HSO 8-4's status has now changed to "drilling", with the latest drilling report received on 10th May; I think it is fair to say that they're (finally) well under way now. Dry spud date is listed as 8th May.