Member Info for GingerHippo

Vista, the point being that they need more cheap capacity asap without increasing oil imports. Using indigenous oil reserves would be the obvious next step.

"Introducing more renewable energy sources" to me reads that oil and gas would still be predominant.

Https://www.jamaicaobserver.com/business/jps-responds-to-record-electricity-demand-in-jamaica/

"So what we would need to do is that we would need to add more capacity in order to serve that demand," he explained. "And you want to ensure that the capacity that you are adding will be at the lowest cost possible so that, in trying to serve that new demand, you don't raise the price of electricity and make the overall product become more expensive."

"It is for this reason that, in the long term, reducing dependence on imported foreign oil is a focus for Jamaica."

Hmmm... how do you think they can increase their capacity cheaply without increasing their reliance on imported oil.....? Gee that's a real thinker.........

Wrong board.

I do apologise.

Https://www.jamaicaobserver.com/business/jps-responds-to-record-electricity-demand-in-jamaica/

"So what we would need to do is that we would need to add more capacity in order to serve that demand," he explained. "And you want to ensure that the capacity that you are adding will be at the lowest cost possible so that, in trying to serve that new demand, you don't raise the price of electricity and make the overall product become more expensive."

"It is for this reason that, in the long term, reducing dependence on imported foreign oil is a focus for Jamaica."

Hmmm... how do you think they can increase their capacity cheaply without increasing their reliance on imported oil.....? Gee that's a real thinker.........

Getting your own BoD removed is investment suicide unless you have a better replacement lined up. I wouldn't hold on to a stock where PIs were trying that on.

Https://youtu.be/obcN7eP5ZXo

Spanking you are of course correct. The land survey has to be done for the feasibility study to be done. When Bahria first mentioned it I did some reading on it. Only took a minute for that to be confirmed.

Yep. This is a massive overreaction. Must be capitulation from some large holders.

Vista I think I explained it fairly well.

Say I was offered a 2:1 bet on a coin toss. The chances of me taking up the offer are low because I only have a 50% chance of winning.

But if I was offered a 1000:1 odds on a coin toss I would definitely take it. The chance of winning hasn’t changed, but the expected value of my bet has.

It's important to distinguish, a 17% chance of success at discovering oil is NOT the same as a 17% chance of successfully negotiating a farmout deal.

17% chance of discovering oil worth billions certainly has an expected value worth significantly in excess of the $30M it would cost to drill. Therefore, I believe any company trying to increase their oil resources and can afford $30M would definitely be interested.

So there may be only a 17% chance of success at drilling, but this translates into (obviously can't be calculated but for illustration) 80% chance of getting a farmout deal.

What matters to us PIs is the high chance of getting a farmout deal, not the low chance of a new oil discovery.

Great point, Bahria

$30M capex for a 20% chance of the asset being worth billions? Yes I would definitely take that bet.

Vista, if you were one of the multiple interested parties, would you be willing to lose a potentially huge deal to your competitor because you were trying your luck waiting out the license? I wouldn't.

To me, WM seems like a no brainer. For a relatively small capex investment there is a potentially huge resource at stake. I feel confident we will get offers before the drill or drop deadline.

I don't see how you can read it that way. The RNS says "and as they have requested additional time, we have agreed to extend the deadline."

So according to the RNS, the request came from interested parties.

Yes, about 6 months.

Hopefully just long enough to get a JDA signed for the GH project with a healthy cash injection included. I can't prove it, but that's what I believe the plan is.

Overall, the request for additional time suggests that the potential partners are genuinely interested in the opportunity and are investing effort into evaluating its feasibility. It is a positive sign that the company is engaging with multiple high-quality companies and extending the deadline to accommodate their evaluations, indicating a level of interest and seriousness in pursuing the farmout.

Well, bit of a mixed bag.

Positive that the natural decline is not that much and we were way ahead of the guidance for H1 which was 700-900 bopd originally.

Potential delay to the Maria sale is frustrating but not nailed on. Let's see. But a delay is still just that, a delay, not a cancellation.

Cash position is not great but not that terrible either. We started the year with $1.4M and now have $0.55, so we spent $850K more than we got in. Not too bad when you consider we spent almost $2M on the 2 new wells. But clearly something the BoD need to manage.

Jamaica obviously the key here. Delay to the indicative offer stage is a bit frustrating from a PI point of view, but if it is down to potential partners requesting more time to evaluate it's actually quite a positive sign. 197 days left maximum.

To the ill-informed:

There CANNOT be any further placings until April 2024 at the EARLIEST.

"plans for ke

the news owners of the company have ambitious plans for its future....

another major area of possibility is thar coal. spread over more than 9000 square kilometres, the thar coal fields are one of the largest deposits of lignite coal in the world — with an estimated 175 billion tonnes of coal that according to some could solve ****stan’s energy woes for, not decades, but centuries to come."

Thank you, DR. I didn't know KE had been sold.

I saw this very interesting article about the new owner, Shaheryar Chishty . He owns Block-I (which is the same size as Block-Vi and is now fully operational), and has very close ties to CPEC. This guy knows what he's doing.

Extremely positive IMO.

"Chishty is naturally a big believer in Thar Coal. Two blocks of this project are already ready for operations. And according to a K-Electric document, the company feels they can easily be expanded at a low marginal cost. Located only 300 kilometres from Karachi, transportation is also not going to be a major expense. Already a rail line linking Thar to the national rail network is expected to be completed during 2023, and it will require an additional investment of just over $3 billion to produce 3600MW of electricity."

https://tinyurl.com/mwmkcddh