Member Info for highlandmatt

I'll do it for £25k per year and some options at 1p. I'm only half joking.

Nothing is certain. But if one was worried about that risk, there are ways of forward selling the shares e.g. for 6-6.5p. I'm sure Graham could advise better than I though.

https://twitter.com/Scirocco_Energy/status/1632757884298641409?s=20

I suppose the first $3m is going to betaken up with the loan and any CGT. Hopefully the second $3m should be due shortly thereafter, on the assumption that if first gas is October, then ARA need to decide to build facilities pronto.

Top digging Keith. Yes, buy now at 3-4, sell some or all for guaranteed profit, or lose the opportunity. No brainer.

Indeed. If the well is a successful, the production will be valuable and allow further growth.

Think that was derived from the 2p resources value.

Page 14. The following disclosures relate to this document: 1. This is a commissioned or a non-independent research note/comment.

Page 4, third para, above fig. 3. https://beaconenergyplc.com/investor-relations/research-notes/
I'm assuming as it is on the company website, that it is endorsed, and therefore fairly accurately portrays the envisaged deal.

The Tennyson note sets out the envisaged post deal structure - 742m shares, existing shareholders having 153m shares (after 10:1 consolidation). It also gives a valuation of $15.6m. Dividing one by the other gives 2.1c per share, or 1.75p. So zero increase once you take the 10:1 consolidation in to account. Anyway, pick your preferred valuation, and divide by 742m shares to get a target. Place your bets via Primary Bid.

With a successful drill, things will be on a good path. I just don't want folks thinking that this will instantly rocket on relisting. If it does, great. But don't expect it.

Not many companies trading at broker or NPV valuations. Helium is a lot rarer than oil. He1 currently 6p.

Then realise that is in the success case after the well. It is not the mcap immediately on relisting.

500bopd is not going to get you mid cap. $80 is revenue on one barrel produced. 20 million is possible reserves in the ground. You can't multiply one by the other. Either value on NAV of reserves (currently 4mmbo), or revenue / EBITDA / net profit. Look at mcap of companies with production of 500bopd.

I would agree a successful well will increase the share price, as worth a few million dollars per year in income. Just remember we don't get to keep all the $85, there's costs, royalties and taxes.

The note suggested that existing shareholders would retain approx 20% of the new company, which might have a mcap of around £10m once the £5m is raised via the placing. So we get about £2m. Exact pricing depends upon number issued at what price, plus any consolidation. Rhein has less than 4m barrels of reserves. That's worth about $12m in the ground. I'd be very surprised if the mcap on relisting was anything above £20m.

Yep, read that. Not massive. Current production?

I must have missed something then HMS. I thought current production of Rhein is about 50bopd, and targeting 500bopd with the well. Can you direct me, please?

Let's not get carried away. Negligible production and a large percentage raise to fund one well. Even if successful, the production and resources are not going to be massive.

Will you two pack it in, please?

It is positive - drilled safely to Target Depth, ahead of schedule, ahead of budget. It mentions encountering plentiful sands, interpreted as hydrocarbon bearing. Precise details of water cuts, pressures, API, flow rate etc will only be available after testing. So it is positive for now. Nothing has gone wrong, and the signs are good. But the market will remember the same from Chinook. The difference here is in Royston 1, the Intermediate flowed 500bopd.