Member Info for Edgein

Only,

What dilution is that? The last funding the company did was to sell off part of Wressle i.e no dilution. They also said that they have a large Canadian backer at the interim presentation and that they would reveal more in due course, Wressle future expense non-dilutive funding apparently. Cloughton they are also looking to be carried. They could sell off more of Wressle to fund the small amount required for EG.

Regards,

Ed.

Donal,

However there was a plan that cost $53m that I would like clarification on. That plan was to drill a well to Barracuda and two side tracks into the other two overlapping fields. We should get clarification on this in due course imo now that the farmout is signed and EOG are operator. The Chinese have to follow at our pace. TRP fro example are drilling just over the border in Cameroon at a similar depth and have a well cost of approx $15m budget. The $53m budget suggests that EOG will be keeping the rig in action a little longer! :)

Regards,

Ed.

Agreed guys, great news. While its not the major we were hoping for its still got all the fundamentals of a great deal to EOG. Antler keep 40% wi and are carried to the tune of $50m! 5% to pay is very small in the grand scheme of things when it has meant that they have kept as much of the wi as I was expecting. Some on here were predicting EOG would only have a net 10% after farmout, they've ended up with almost twice that. Well done Will you have delivered as promised! It may not be a US company bagged but its a Chinese top 500, that'll do, cap is still tiny compared to the scale of this deal. Hopefully a company making 2026 lies ahead. AGM going to be real interesting today, hopefully release that video on youtube. Will is bound to do interviews too, he's gotta to the word out there today.

Regards,

Ed.

BF,

My interpretation of the EG trip was slightly different. Imo it was more early well planning, logistics and info gathering on the possible sales route (visit to the LNG bridge and export terminal). Showing to the jv that the company are prepared and getting on with well prep and are very confident that Barracuda will lead to a commercial discovery in terms of flow rates and volumes. Its certainly a confident move, also to hang up pictures of the trip on the office wall, shows the intent of where the company sees itself in the future. Lets hope that Will meets his target of before year end.

Regards,

Ed.

MH,

Yes definitely good to hear about the US process making progress to fund the next stage of the REEs. Also interesting that they expanded the flourspar drill programme by 70% as that should be positive for the MRE numbers also Q1 next year. Cap is still very small if they make good progress on both.

Regards,

Ed.

Good morning Only,

Possibly, although I see Cloughton as a bonus to the main event. When mentioning west Africa I wasn't suggesting Nigeria that's for sure. I was thinking more along the lines of Cameroon and EG, both of which are running near term licence rounds. Also Angola has been open to new money with Sanangol divesting assets to the likes of Afentra et al. Namibia is hot right now too but that has a lot of competition from the majors.

Regards,

Ed.

True guys, hopefully we'll see a santa rally here, farmout is still worth much more than the market cap! Good to see Prime and TRP over in Cameroon having top level meetings to get the show finally on the road. Also interesting to note the recent release by CEG too which points to even more action in Namibia possibly next year.

Regards,

Ed.

Only,

They may well do. But the company has the government onside now with their clear definition on what is hydraulic frac and what is proppant squeeze, so looks like a matter of time for EOG and Cloughton drilling. Lefties think its better to import their gas from half way across the world, the whole process of liquification and regasification let alone shipping is energy intensive. At least we still have lots of domestic reserves and resources that progressive companies like EOG can exploit. But at least with this recent decision it shows there's at least a little bit of common sense left in the current government until someone more competent takes their place.

I still would like to see management here focus more on west Africa though as that is where the juicy fruit lies. Lets be having that JV update! :)

Regards,

Ed.

True, it doesn't stop the company from raising funds but it does encourage alternative financing like they did for Wressle. Well imo calling an EGM to raise funds is likely to have a larger detrimental impact on a share price than a regular financing. It would be like advertising a placing before one happens, a bit like a dual listed company halting on the ASX etc. Part of the road ahead will require equity that's pretty much inevitable if its accretive then I don't see that as a problem.

Regards,

Ed.

Serif,

The fundraising constraints on the company did work as you suggest and I was in favour of their "royalty" type sale of Wressle production. So they have been more creative than some companies for sure. Also like CEG/Chevron there may be a lump of cash that goes with the carry element of the farmout which could put EOG in a very healthy position, provided its not restricted. The good thing about this last 12 months is that it hasn't been cash intensive, no drilling on either Wressle nor Cloughton so has been much easier to manage.

But coming up next year are bid rounds in both offshore EG and Cameroon and that may require some cash for applications if EOG go down that route. That would be much cheaper to get in on in the application phase than to jv later, so again management wouldn't necessarily need to flog more wressle then. Will seems to have a good grasp on things and I've not seen any wild suggestions from him yet and they seem well balanced as they've been looking at other projects but will only move when the timing suits. We shall agree to differ on another EG type deal as I would see that as super, they got into Antler on the cheap and it was the reason I bought back in over the summer. If they could grab similar in the upcoming licence rounds I'd give that a thumbs up too!

So we'll just have to see what unfolds on the run up to the AGM and beyond. I've been impressed with how Will has managed things so far even with the "no placing restraints", I still see 2026 as being bigger and better than 2025.

Regards,

Ed.

Nice to see these guys smash through 2p again, looking forward to seeing what they smash through after they get the assays back from those visible gold cores. If they match the historic cores it'll be game on for sure. The VTM asset is a very nice bonus!

Regards,

Ed.

Adnatrob,

Yeah that's fine for the likes of Wressle-2 or perhaps even their share of Cloughton. What I'm talking about is multiple offshore appraisal wells and perhaps even a standalone development for EG-08, selling off another royalty or even all of Wressle wouldn't cut it I'm afraid. So if the energy major wants to do follow up drilling, like an optional rig slot for example, the company needs to have the option to fund that. The previous cluster well talked about by the company would be targeting approx 1.2Tcf so that should attract much more than bucket shop institutions if successful. I would class development funding, if necessary, as advantageous to the company.

Regards,

Ed.

Personally I don't want to limit the company's ability to raise money. Hopefully they'll have potential gas developments at Cloughton and Barracuda if all goes to plan, I'd expect the carry to be for exploration/appraisal drilling only with devex coming from RBL/equity as normal. There is the potential that if they go ahead and drill the cluster well and if all legs were successful they could have 3 gas discoveries in EG and one onshore UK. So I'd like the company to have all options open to them. I'm fully loaded so not currently of the intention to take part in open offers or book builds etc so intend to vote for all resolutions.

Regards,

Ed.

AS,

There could be a very material announcement over the next 2-3 weeks here. If these guys can land the deal that many anticipate with a free carry from a major energy company then imo they will have earned those bonuses. The chance of that leading to a company making well next year is about 80% then we should be looking at double digits, fingers crossed. Share price this year has been in the range of 0.5p-2.3p so the rerate has started for the year past for sure, so I would give them some credit for attracting in the major to the tier 1 gas asset. There certainly are management on AIM that have awarded themselves more for a lot less progress. I'm lucky enough to have a low average here and would give them a thumbs up this year! If they do what they plan to do next year they may even get two thumbs up and a wink too!

Regards,

Ed.

That didn't take them too long. Looking forward to seeing some of these assays being released and the upgraded resource numbers.

Regards,

Ed.

Daniel,

Lets hope so, fingers crossed. These negotiations with the major energy company have been going on for some time now and the latest we have is that all is going to plan and they hope to have it signed off before year end. We're certainly on the last stages now. Eyes are still peeled for the most significant RNS in the history of EOG. As you point put though there could be even bigger and better to come in 2026. There sure are some monster targets on EG-08. Come on Will give us an early Christmas cracker!

Regards,

Ed.

If Cedric manages to get the share price up by about x5 to vest all those options, the last thing I'll be thinking about is 10% dilution. If he gets the share price to 7p+ he'll have earned those options.

Regards,

Ed.

BigD,

Good stuff. You are right about scale, I was watching all the recent hype EME attracted recently for their 8.5% of the Mako gas discovery, the herd was all over it recently. It was for around 400Bcf gross 2C. So a close match for Cloughton (providing the proppant squeeze is successful etc). Its no match for the size of Barracuda let alone the rest of EG-08. So I'd imagine that if the herd get a sniff of EOG the mm's will be really pushed for shares. Will just needs to land that JV and its game on. I agree detailed discussions have been going on for some time, the highest potential of any well in the history of EOG is looming. Eyes peeled for that RNS, saw the WF extension pop up and thought is this it! Eyes peeled.

Regards,

Ed.

Helu,

Mad market cap for what they already have and I'm not just counting the gold! They have a very solid moderate sized low capex VTM project that to me looks worth way more than the current cap. Gold production could easily bring that one to development too, cap is tiny compared to the VTM project let alone the gold. Fingers crossed market will take note of both soon.

Regards,

Ed.

Leigh,

Yes the original plan was to drill one well with three legs like a cluster well, that would have hit the main three currently identified prospects 1.8Tcf total or there about. The plan seems to have moved on to now be a single expo well targeting Barracuda 900Bcf ish. We'll no doubt get more detail on the upcoming updates. Good to hear from Will yesterday in the short tweet, things progressing as planned and they hope to update in due course. The plan was to get the JV concluded before year end, so due course is still within the next six weeks. So hopefully shouldn't be too long before the price here reflects the upcoming opportunity. I'd imagine that the contractor/service provider and rig contracts will come shortly after the JV. Exciting times, Will reassuring the nervous nellies that things are progressing to plan.

Regards,

Ed.