Member Info for Edgein

The $800k signature bonuses probably went to the owner or to whomever arranged the deal, ther's nothing unusual about that. That was mainly funded through the partial sale of Mt Weld, looks to me like money well spent. Also Apex happy to take shares for the transaction at 0.4p per share.

Looks to me like a minim of spend of $3m and $6m and one exploration well on the exploration block, the other two blocks are redevelopment. That is in the initial 5 year exploration period, not all at once. Also see CRCL;s recent cornerstone investor and new NED. Mr Karam has a lot of bank and financial institutional links for the funding of oil and gas assets. I would imagine that the bulk of these redevelopment costs will be funded through bank debt. Lets wait and see. But its interesting that all of these new investors are all willing to come in at a premium and some with long term lock ins. This Angolan deal will have been on the cards for a long time, these things just don't happen overnight.

Yes those two old fields ceased producing in the '80's it'll be interesting to see what happens to that contingent resource after their redevelopment plans. Redevelopment of oil fields isn't oil exploration by the way. The do also have an exploration license by the way. Exploration potential on top of the 16mmbbls of net contingent is circa 300mmbbls of prospective P50.

Again see Mr Karam's links to international banks and financial institutions, a very useful cornerstone investor to have, CRCLs success would be his success too.

Regards,

Ed.

Nige that is way too early to say yet. We need to see their redevelopment plans and then the outcome of new horizontals and whether or not they'll be stimulated. But 16mmbbls net suggests 50-80mmbbls contingent gross so well into the thousands of bopd gross from that level of possible recoverable. Field redevelopment may be as high as 20-40k bopd gross or potentially thousands of bopd net to CRCL if successful. Can't wait to see the plans for these assets and how much it will cost. These old fields have already produced a lot of oil so redevelopment potential is definitely there. JP has got the experience and so has our new NED from the sounds of it. If they reestablish the production from these old fields that would help fund expo and the potential at 300mmbbls is off the chart for a microcap.

Regards,

Ed.

"Both the Tobias (KON-11) and Galinda (KON-12) fields were discovered and originally developed in the 1960s. Both reservoirs are in the Binga limestone with 4-14% porosity and located at 700m and 1,900m respectively. Peak production at Tobias was approximately 17,500 bbls/d and at Galinda was approximately 2,700 bbls/d. Historic total production, which started in 1960 and ceased in the early '80s, was 29MMbbls and 2.8MMbbls respectively. APEX and Corcel believe that significant recoverable volumes of oil remain in place at both locations and initial plans may include additional seismic work to firm up drill locations, as well as a combination of vertical and horizontal wells."

These fields ceased production in the 1980's so neither of them have modern wells drilled, so wouldn't have been horizontally drilled nor fracced. Things have moved on quite a nit since the 1980's that's for sure. Looking forward to see what comes from the presentation. Looks like potentially compay making upside from the redevelopment let alone the exploration. Field depths are pretty modest too so not over the top costs in terms of CRCL's new working interests.

Regards,

Ed.

Again they've secured large assets in Angola for less than £1m and the investors linked to that also come into CRCL at a premium! This is all done yet again at a premium to the current share price. What a deal though for a £3m company. They get 16mmbbls of contingent resources with plans to get their interests of 18-31.5% into production (upcoming presentation). Plus exploration upside net to their working interests of circa 300mmbbls. That's a huge upside for a tiddler and its been viable through the partial sale of Mt Weld. I can't wait to see their plans for these field redevelopments. Brazil in the firing line too. Great stuff and all this for a microcap at present.

Regards,

Ed.

Dbh,

So far all we have seen was bursts of 8mmcfd injected and then down to 3mmcfd. The early response from the wells was strong. We've yet to see what continuous 8mmcfd can do let alone the planned 12mmcfd. So I would currently call the production we've seen to date and the previous peak as only scratching the surface. Be interesting to see what unrestricted flow from all wells will eventually achieve. We are still grossly oversold on the BFU asset alone (that's where the bulk of the current 2P is, gas hearing suggested up to 50mmbbls recoverable), what we need is constant progress and good news to put the share price back to where it should be.

Regards,

Ed.

Shaa,

That would be nice! That's exactly what we need to get the share price going in the right direction, progress and regular updates. Still possible to have a strong end to 2023 with progress at BFU and as you say JV could drop at any time. This side of the AGM would be even better.

Regards,

Ed.

Art,

It was increasing well pressures from the MF that caused wells to be restricted in the first place as there were safety concerns with the current infrastructure. With the returned gas coming down the steel pipe from Q3 that would allow wells to operate at a higher pressure and reduce flaring, they would also reduce pressure in surrounding wells as they should be able to return as much gas as possible from their 9 best producing wells. Therefore those wells no longer need to be restricted and the gas injection rate around those wells could also be increased. We've yet to see what 8mmcfd on continuous injection can do. They only did short cycles of that so far and it sent gross production up to something like 2700bopd (from memory).

So it should have a very positive impact on those 9 top producing wells, more can be connected as necessary. They've previously given guidance of at least 5-7000bopd from the BFU as peak rates. We'll likely know stable flow rates from these 9 wells and field wide by end of Q3. We'll find out what the BFU is capable of once there are no more restrictions on wells and gas injection can be continuous, something yet to be achieved. GGS upgrades should do it though.

Regards,

Ed.

Good to get a positive news release, all going on schedule and budget for the GGS upgrades. Still within the $4.5m budget and making good progress already. Bodes well for production increases throughout H2.

Regards,

Ed.

FF,

Woah reign yourself in a bit. So far COPL have drilled a discovery well into the BFFDU, no issues getting approval for it or the several other well approvals they currently have. They also need to delineate this discovery across both the CCU and BFFDU before launching a FFD. This will be staged and timed, no JV is going to say they're coming in for 100-150 wells without drilling a couple of appraisal wells that they will test. If/when JV completes they'll have to come up with an agreed work programme after they conclude financial terms. If those first phase wells are successful they'll continue with more, they sure as heck don't need to apply for all wells for a FFD before they have even drilled their first horizontal producer. Plan from COPL was to test with a couple of short lateral appraisal wells, we'll see how this has changed if they conclude the JV. First couple of approvals is more than enough to get started.

Regards,

Ed.

R Dunc,

Well history of the 100-1 consolidation last time didn't bring in sticky hands, none of the previous TR1 holders appear to be around anymore. However making the company successful would bring in sticky long term institutions which is something that we can agree on. :)

Regards,

Ed.

No did I say that, you rare crazy though if you think those bonds don't remain convertible which they would do and will their new terms remain the same or worse than present? So far the histroy of those bonds are they get worse each time. That leads to dilution does it not? How about this. get the BFU done, get the JV done, get 8-10 wells done into Frontiers. Pay down the bonds and debt then consolidate wen the company isn't in a weak position and reliant on more funding.

Regards,

Ed.

R Dunc,

You are interpreting my posts wrong then. I'll make it more precise. Dilution is inevitable, that's what I've been saying all along its linked to both the convertible bonds and the senior loan, its not a case of if, its a case of when. Consolidation doesn't make dilution more likely it just makes it worse. I'd much rather be diluted on my current holding rather than be consolidated up to 1000-1 and then diluted. What consolidation can do is attract more bucket shops in by having a higher share price and lower shares in issue. It doesn't make it more likely it just makes it more attractive to new funders, i.e to facilitate. To get sticky investors in, make the company successful, consolidation doesn't do that. All consolidation does is get the share price up temporarily. If the underlying company isn't successful it will come back down again. My point remains, get the share price up the old fashioned way through success first then bring out the hairbrianed notions after that. Consolidate and dilute didn't work last time, the share price is now back to where it was when it was almost going bust due to Essar court case. Time for a new approach, get production up, JV done and see what that does to the share price. I agree though, the consolidation vote should be a message to Art to get on with creating shareholder value for a change.

Regards,

Ed.

Eazy,

Yeah £500/share is really unrealistic as the company currently is in a weak position, consolidation is only a quick easy fix for that. Sort out the company first, get all these bonds under control via growing the production and developing the assets. Leave the candyfloss stuff until the company is in a strong position. Perhaps then US institutions will want to buy and actually stay around. I've been in plenty of successful oil and gas companies over the years and not one has used this current proposed strategy to enhance shareholder value. The way they did that was consolidate dilute, consolidate dilute. It was develop their assets.

Regards,

Ed.

"consolidation" rather than dilution.

Regards,

Ed.

R_Dunc,

I have yet to state that the consolidation is dilution, but it sure is a precursor to dilution, unless you think that the facilitation of fund raising doesn't mean dilution. That after all is the basis for the consolidation. To suggest there won't be dilution after the consolidation would be highly misleading though. If you get your 100-1 or 1000-1 dilution you'll then understand perfectly what I've been saying all along. I just hope that doesn't happen for all our sake. Its much better to be diluted at 5p than at £50/share as there is the potential for a long way down from there with discounted convertible bonds and you'll have a significantly shrunken shareholding too.

Regards,

Ed.

Altag,

I've seen majors and large mid caps farm into the likes of SQZ (SQZ were 3-5p at the time, didn't stop BP). You see they farm into the assets not the company. Don't get the two confused. All a major would care is that the junior partner can meet the terms of the jv and hopefully that would include a cash/carry element so not a problem for the first 1-2 years, fingers crossed. Also the major partner would have default clauses etc in there to cover them too.

Regards,

Ed.

Brel,

Strangely enough though the basis for consolidation doesn't mention any alternative listings. Its best to stick with the legal documentation that comes from the company. Its not some mysterious shorting cabal that has done this to the share price I'm afraid its lack of progress on the assets, lots and lots of discounted bonds which have been dumped and almost running out of money. Had we been listed in the US at this time the share price would also have gone down I'm afraid. Its not too late yet though Art can perhaps reverse the production decline and get a JV done to operate the large discovery neither of which require consolidation followed by dilution. Anyone who thinks that the consolidation won't be followed by dilution just simply needs to read the special meeting document and look at the convertible bonds and senior loan.

Regards,

Ed.

Altag,

Then read the special meeting announcement and you'll see a very clear connection between consolidation and dilution. You'll find that under the basis of consolidation which is to facilitate fundraisings. That you will find is consolidation followed by dilution. Its all in black and white in that document that you have apparently read. I don't understand what people don't get and somehow think that this proposed consolidation would be any more benefit than the last one. It won't it will just facilitate more dilution after your holding has been shrunken by up to 1000-1.

There is a better way than being wiped out and diluted though. Make the company successful, get production and reserves up and the JV done and raise money if necessary. Get the JV done with good terms and pay off those bonds and debt through increased production.

Regards,

Ed.

FF,

If you had been keeping up with the conversation you would see I was suggesting that when the company gets the BFU or JV production up to 5000bopd they could start buybacks.

Which planet am I on, the same one that Pharos are doing share buybacks on 5-6kboepd, like Art could potentially do in the future. The same planet where Frontier wells cost from $4-6m where as you thought they were $12m+. :)

Regards,

Ed.

Duster,

The other company I mentioned were doing something like $3m buybacks from their current production. I don't see why that or much more wouldn't be possible as I was also assuming that by middle of next year JV would also be started development (carried for at least one year's drilling). So all they would need to be funded over time were something like 9 shallow Shannon wells for the BFU (likely vertical wells). At 5000bopd free cashflow should be very healthy at $70 WTI.

Regards,

Ed.