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I see this as a weakness to be utilised to get few more shares so bought another 5k pounds worth. We have great potential with many projects and revenue incoming from many sides. Disappointed with what has happened in last 2 weeks so lets see..
Best wishes to long term holders.
Picky I think you are way off the mark.. I wished your figures are correct.
If you look at the figures for existing 2 wells production and assume decline rates that will settle at around 150 b/day per well for each well after 6 months of initial high production you will get figures of around $3,000,000 to $3,500,000 a year for HNR assuming inclusion of remaining production for existing 2 wells and 6 new ones for the whole year. This assumes $65/b as you did. Of course production does not stop after first year but production rates can settle at around 50-150 b/day per well for next 10 years or so (looking at the graphs of similar wells at the area). So following a first year of production then say for 100 b/day per well will result in income for HNR for 8 wells per year of $1,400,000.
This assumes no DTU implementation and potential improvements in production rates but it also assumes that all new wells will have excellent initial rates as first 2 wells.
Obviously key to improved success in all of this is increase in scale and the fact that we have no capital or opex expenses (or minimal) to get this income from these wells. Our overheads are spent on admin and other projects.
Hope it makes sense.
Thanks Datguy..
Obviously all answers were scripted by RP beforehand although he tried to inject some realism by starting almost every answer with 'hmmm' 'mmmm' 'ahhh' 'aha' 'that's a very good question'.. but this made him sound bit fake and robotic or not too sincere..it would been better if he just said that some answers are of confidential or commercial nature and that he can't answer them. It is good to hear at the start that they do not need funding as of now, but I expected him to put some, however short, timeline to that even with growth uncertainty in mind. I also thought that he would have had something more concrete and new on Nitrogen sales so I am but disappointed with that. Same on DTU, tipping point, DTU take up, Schlumberger all avoided, but good answers on West Denver potential and overhead cost reduction.
All the best to all shareholders
Yes Fadec I noticed that, see my earlier post. It is also indicative that he referred to 2,581 mcf/d as the last flow rate like there is more coming.
I still do not understand it in terms of nitrogen decline rates for this one well and for overall concession nitrogen in place. Have they learned how much overall can they possibly extract? how many wells?
Maybe it was a slip of a tongue..but he said about Nitrogen well "well is continuing to increase and to clean up so our last flow rate was 2,581 mcf/d".. so it seems there is potential for this to increase further..
Finally let's note his statement at the end "we have exposed shareholders to what could be incredible upside in Highlands!"...I think we should be at least 50% up from where we are
I Love our KanVas Nitrogen Project!! haha..Justin is the King
so far Blueee..back in 20s,,.lets hope it doesn't fall back after few hours
not sure how much Nitrogen is in there and decline rates..but if we can sell all that Nitrogen just in 1 month we will make $ 700,000 in revenue...what a great move and investment this seems to be
This will mean that DTU cost at least in Permian basin will be slashed by 20% if we use our own Nitrogen...not sure thats still enough to push towards full commercialisation but its fantastic news..thanks to RP and team for great effort...surely sp will finally rise today
interesting snippet from today's Solo RNS in regards to their Helium investment... Helium Market Update Based on market intelligence monitored by He1 it is clear that constraints on global helium supply continue to intensify with continued increasing demand and reduced output from established producers. Demand has been increasing at an annual growth rate of approximately 3% due to increased requirements from a wide range of technology applications, including medical imaging, and industrial leak detection. Meanwhile supplies from Qatar continue to be constrained (reported to be only at 70% output). In the USA, the Federal Reserve (managed by the Bureau of Land Management) is still set to close on or before September 2021. Industry sources report spot prices for pure liquid helium is being offered between US$260-300 per mcf and that long-term contract prices are shortly expected to start to increase significantly.
the funniest thing is..I am too sitting in Morocco,,sipping Moroccan tea..eating some fantastic olives and olive oil..while HNR is delivering and hopefully increasing revenue. Moroccan olives taste so nice, not bitter at all like D14...:)
good job by the team so at $5/mcf that will give us $ 250,000/month for, if confirmed, 90% is nitrogen and if we sell it all to 'partners'..and now lets get the share price to drop to 14 p for those fantastic investors who change their mind every time the wind blows to get in...useless..
Thanks Fadec for the summaries in the last few days and putting an effort to write them down. really appreciate it The H-S
oh my..these HNR guys are korny but clued up. love how RP was shouting key questions to Cully on HNR..haha. that was a good sales trick. I am impressed that they are obviously so convinced about the potential not just of DT and Helios but I think they see ED as more than just helping with DT/Helios. It is also obvious that they are misguided about how markets work..he thought that they went from 12 to 30 p on the back of those 2 wells so therefore expected interesting day after True deal for another 6. It didn't quite work out like that but all the best to them and us!
...and all these 'experts' who don't have a clue about running and growing business go more quiet..another 10% up complete silence never to be heard of again..just watch it
1 Mil shares bought and share price doesn't move? is this the start of share buy back by LEN?
I am trying to re-think the whole LEN and interim testing again. Re-reading the announcements and PA's statements. - Couple of weeks after they announce the testing programme start non-exec director buys 15,000 pounds worth of shares..interesting - they have $25M cash which is 6p/share - they will spend $4M on interim testing and if that is a complete failure they will still have around 5p/share cash left - so even if they fail they will have lots of cash and potential for very good acquisitions in Chine where they have excellent positioning, connections and partners in the shape of PetroChina as well as access to finance (as they have repeated on numerous occasions) - if they fail in this testing and decide to mothball the zijinshan for now share price should still hold or even increase if they announce cash generating/growth acquisition, especially if they partner with a big Chinese Co. - on the other hand they said they want to strengthen their technical team which would indicate that even with the failure of the testing they might want to proceed with the development but maybe not to the full scale - otherwise why strengthen technical team if you are not going to do any further technical or operational work? - Regarding acquisitions Chairman already said that they have been 'offered opportunities to work with the major state owned energy Companies CNOOC, Sinopec' which sounds very encouraging Having all the above in mind I think we should not make a mistake of undermining the LEN team based on previous delays and failures where key parts of management team except PA were not present and there was no talk on acquisitions for example. I think some the statements from above encourage me to be more patient and give them a chance..here is to hoping
Problem in testing, frac or water in one single zone especially in this vertical well can impact everything. But I agree with you they should have told us something in last 2 months
not a greatest expert myself, but coming from O&G industry there are possible explanations. initial flow testing of zones can indeed be just 1-2 weeks, but if they decided to do hydraulic fracture stimulation after initial failed flow testing as with Z5, and as they will probably do with Halliburton on board then that can take much longer. Also, if there was water ingress from one zone that prevents testing in others and they are trying to isolate it then that can also delay things. Id say they are definitely doing frac testing and if they had positive results they also could have 'shut in' the well for pressure tests and that can also take weeks Im just offering some alternatives to the obvious 'its all failure' scenario
I dont know about calliing PA a liar...maybe situation changed on the ground, maybe they encountered problems and are trying to resolve them, but what he promised in terms of 'lots of news flow' didnt turn out to be true. So in that respect I agree with wordog, I support PA and the board but we have to admit what are the facts in terms of no news for more than 2 months.. Previously they delayed results from other wells and now again! Maybe they are having problems with wells, with Halliburton who knows...maybe attempting to isolate the water and attempt again the tests, I have no clue what could be holding back the news flow that they promised...but they should communicate some kind of update. I am worried to say the least