Member Info for HopefulDave

Thanks for your detailed and useful post. Let me consult my crystal ball.

It says no.

So much news to come. Lots of projects all ticking along nicely.

Debt from Capital Markets is still debt:

It often involves restructuring of existing debt.

Now let’s see.

What existing debt do we have?

Ah yes. The convertible bonds by any chance?

Perhaps, and just a little guess, but perhaps they were hoping initially that the existing convertible bonds would have, converted by now, and these extra liabilities are proving a headache.

The clue in the previous RNS’s was this fundraise being, fair to all, existing shareholders, existing bond holders etc.

Perhaps, the capital debt market is going to attempt to somehow clean up the existing bonds, or offer existing bond holders a replacement bond perhaps, on different terms?

IDK. Always thought this would be a complex process, however key word is still debt, and capital markets doesn’t necessarily mean equity debt.

Any thoughts?

Non. Me is back in UK and back at work, nothing funny about that. Jet lagged.

Bad.

Decending into another cesspit of abuse and anger and political views again.

SXX people, it’s all about SXX. Still building a mine aren’t we?
As SXX - do we give a monkeys about Brexit, given practically all of our sales are currently outside the EU? No.

As individuals, sure it’s a passionate thing, but stop bitching and moaning about it either way here and keep to SXX?

Posting less and less here on LSE as anything sensible is lost in generic non relevant tripe, and becomes too difficult to find any posts of value amongst the blatantly Hokey Cokey players V political bickering going on.

Meh!

There is a Mine being built people....Please don’t forget that.

SP will do it’s thing, meanwhile the oil is flowing.

And we wait for the IP’s.

And the company will grow.

Simples.

As sorry I misread that previous post. On iPhone and tired! Time for bed!

Jof. I don’t *think* the water at Helios was treated by Epiphany, I thought they used water on the Eagle frak stage from the Muddy, I don’t think Epiphany was involved there.

As far as I’m aware the water is suitable for frak jobs but not 100% sure..

Agreed, coupled with greater environmental controls and concerns on disposal wells etc it all adds up and is no surprise why the water market, and especially that associated with o&g, has the large multi billon $’s annual tag associated with it.

https://nicholas.duke.edu/about/news/water-use-fracking-has-risen-770-percent-2011

I won't don't worry, I already hold the rights to the flame grilled grouse and Helium beer chain.

Possibly, maybe, hopefully, one day etc.

You do realise these are used by the Colorado Department of Transport specifically in winter for treating the water produced from washing down their various road based monsters that go out ploughing the roads clear of snow, and when its super cold and the gritters that go out the when gritting the roads, so to avoid them rusting up.

Its well tested in cold environments accordingly.

PS CDOT really like them....

Not quite sure why I'd be "HopelessDave" when you think HNR will do well in the future?

So do I and its why I've taken advantage of the low SP as opposed to constantly b1tch and moan about it.

Things go in cycles, the lack of news delivering revenue has dropped the SP here, amongst other things, but it hasn't impacted the ability to deliver revenues.

Those that moan about ED and the 7.5% may well look very favourably on the deal if the play increases in size, and if it doesn't but the water play or Kansas do, both of those came along since that deal, arguably Kansas initially funded by it.

I will still expect some "jam tomorrow" RNS's whilst the other projects tick over slowly, and may get some progress due to other external developments, however, I also expect "jam today" RNS's based on revenues from ED, Water, and Kansas to come along as well.

Let's face it, it is important to have plays for the now, and the future, and here we have both.

I assume that is why you think we will do well in the future?

Yes there is so much wrong with it, that's why it's partners are Halliburton's, True Oil, and ConocoPhillips.

Total mugs them, they'll never amount to anything will they!

JJAL

The plastic pipe was my comment and it is still valid but if you paid any attention you'd have noticed we are looking at a multiple markets for the gas, the primary one right now with the biggest revenue stream is NOT via a plastic pipe to an N2 processing facility, it is to be used as a fertilizer.

IF that is not successful, then the N2 can be piped to a facility to become liquid nitrogen.

...continued.

2019 should be about focus:

Focus on the immediate revenue sources and that is what the company have stated.

ED will provide the initial revenues.
Focus on the water play is a clear major goal for the company -> It is not capital intensive to us.
Focus on selling gasses from Kansas -> Again no need to be capital intensive.

Any WD or ED development will be partner funded for free carried rides.

This is why we are funded with ED, our costs to develop these projects are minimal.

There is light at the end of the tunnel.

I invested here for DTU initially like many, then ED kept me focussed. Things haven't developed as initially intended but the fact the company is still here and has many diversified assets is a major bonus.

It is also (as some have noted) a hindrance, people assume we have too many spinning plates, and there is a fine line between spinning them all and keeping them spinning, and focusing on getting a few over the line quickly.

I get the frustration on lack of crossing the finishing line, and clearly so does Mr Market at present.

However we aren't done for, aren't up the creek, and are in a position of strength, not weakness.

It is the diversity that will win out in the end, but only if we focus on delivery of some key projects.

Communication needs to improve with shareholders (we know a new website is coming)

The clear goal of delivering the water play in 2019 was in the last few RNS released.

Kanas is progressing, people want pure N2 sales and money in the bank. I and clearly so do the company, want to achieve the highest sales price and best revenue stream possible.

ED will deliver money.

The rest of the plates can be kept spinning just enough to be kept on the poles, and not fall and smash.

None have currently broken, the rest just aren't spinning as fast as the water, ED and Kansas plates.

It's not all ****, and if you can't acknowledge any of the below, and simply harp on about the past again, then there is little point in ever responding to any of your posts ever again!

And JJAL - Re your snippet...

"What do we have now water and N2 these weren’t even on the agenda 9 months ago. So basically the company and projects we invested have failed. This Lucky find with the N2 might be a saving grace for the unhappy investors to get out with our investment. "

Water -> Yes Epiphany play, generated revenues already, the sole distributor in multiple states across the US, including Colorado which is a very arid state. A distributor with ZERO capital cost and stands to make money from any water processed with the devices once deployed, or % of sales of units. An 8 well ED plant already established, plans already in place should we get further development with True (can see in the original project document from the COGCC website)

Nitrogen -> Lucky find ? It was being actively searched for and found, that's good land & geology/research not luck... It was in the prospectus as a goal.. Already established one crop trial, who knows if we have more. Have extended the acreage from initial 800 acres to 3200+ acres (at last informed release) Possibility to use as an organic fertilizer, failing that then it's still a pure N2 resource that could be piped and sold accordingly. Argon - still awaiting results could be good also.

"Company and projects we invested have failed" -> No we are still here:

We have 8 wells from ED online, or coming online, the priority always would have been ED as an initial revenue source, but now True do this for us.

We have the two plays above.

We have Helios where the Helium is increasing in value all the time, the water in the way of it, potentially now useful rather than a pain -> Yes it will take time to develop, its still there and still an asset. It never was a quick play.

We have WD -> Hot potato yes, set investor expectations badly yes, hindered by 112 applications and public outcry, yes -> but still its there. Going back to this and tapping even a handful of wells on the "less upsetting the local's side" would still provide significant uplift. Perhaps that was the original plan all along, but 112 forced multiple applications and it all went a bit pear-shaped.

ED -> We have the potential to increase ED without ANY capital investment of our own.

C02 -> The acreage is still there and a project yet to be tapped/started.

DTU -> Uptake not there (it would seem) Doesn't mean we can't use this ourselves later on as alluded to before, or push with more funds available to us later.

Has everything been plain sailing? No.

Has all gone completely to the original plan? No. What startup ever does? A good one has the ability to not fold and continue with other projects...

Are we up the creek without a paddle? Absolutely not. There are many positives here as well as the negatives.

I'm not sure why I'd bother reporting a post of a poster who claims (mysteriously again) to have sold out higher (establishing base of I'm clearly smarter than those left holding) then claims to still have family still invested in the share, hence their concerns of course, and then go on to slate the company.

I'm sure their family would be really pleased with that. Hey, I got out, and now I'm going to go and bad mouth them cause you are still holding...

Just as likely as the "I sold out a year ago, and I'm over it, but I'm going to create an account on LSE and come and tell you about it a year later" poster Antha was it?

I wonder who's going to log out and back in again with that ID anytime soon...

If there is a "board mafia" it certainly isn't those you are calling out I can assure you of that.

The discussion was about uptake of Kansas gasses and you ignore any positive and twist every negative again..

I was using the point about uptake being completely different and you completely ignore the positive aspect of any other part of the message and junp onto something and try and use it as a negative.

The point about the oil wells that you were making was uptake was not there yet and tried to imply the same would likely happen with our gas blend.

I was highlighting the chalk and cheese of the situation using the extremes and blatantly obvious differences.

When you refrak ANY well with ANY solution those are the risks. Just like when you drill *any new well* those are now the risks *if you don’t use something like PWP* or have the distance far enough away, and bash your own or your neighbors wells.

Why do you jump onto anything you can twist into a negative and try and start a new dig or negative on something else?

Where is a single bit of acknowledgement, a humble yes I can see where that’s different hmm maybe you are correct and this will be different let’s hope so?

No just another negative dig at something else, and completely dismissive of the point made about uptake!

And I’ve already stated enough times I think we may look to utilize it ourselves on our own site(s) later on if it doesn’t pick up by itself and when we have revenues to do that (DTU)

At the end of the day the point is people have investment with the wells that when they looked at the old cost V reward it appears wasn’t taken up. With our own Nitrogen source we could push it lower and increase that risk V reward, however it may be the gasses are more valuable without DTU in which case I really wouldn’t care about it as something far more valuable and worth more than DTU ever could be would be produced.

Also liability insurance? or in the tests probably completely covered by customer acknowledging the risk?

JJAL. It is nothing like DTU as it’s being selectively applied to a small portion of the plants, 50, of which I would guess there are also 50 control plants to compare against.

Applying DTU to a well is all or nothing to the well, you can’t regrow one in the same space 90 days later if it doesn’t go to plan, you risk shafting the well, other nearby wells and or the reservoir, oh and at $5m odd a pop for a well that would be rather expensive boo boo if it went wrong... Hence the o&g industry being slow to adopt new technology.

If I’m a farmer/producer and I could get say 20%+ more crop yield in the same footprint as I did before then I’d be all over the product like a rash, it’s 20%+ more sales. What’s the risk? None if it’s proven it works. Can try on a small portion yourself then do more and more until your all in.

My other main play SXX have been and are involved in hundreds of crop trials worldwide, successful ones at that, and yet still people pop up on that chat board there banging on about it won’t work etc. so far they have approximately 8 million tones per year of take or pay offtake agreements and the Polyhalite mine won’t even be built until 2021+

So are District 8 involved in more than one other alternative new growing method? Maybe.

Here’s another twist. Are we either already involved or about to be involved in other crop trials? Maybe.

Fertilizer is a huge industry, SXX are mining for ~$32 a tonne, and as a niche product selling around $145 a tonne on offtake agreement pricing.

This well just flows stuff out, nobody needs to continually mine it and lift it to the surface it’s coming up by itself!

Back to SXX that ~$145 a tonne of Poly4 is the price obtained selling it to the distributer, not end user, and that’s at a market disruptive price to upset the cartels and displace established SOP and MOP, or be used as a blend.

If we can get enough of an extra yield then the gas will be valuable as a fertilizer. If it gets the organic status even more so. (Poly4 is organic)

So back to $ and possible profits, if the mix is viable as a gas it will sell. If it’s not. It’s still capable of being processed as purely liquid Nitrogen via a facility.

But I wouldn’t worry about the uptake if it boosts yields by significant amounts, and if it gets organic status. If District 8 were to see a big enough yield improvement with a crop like cannabis then I’m sure they would use this.

Just my thoughts / analysis. Not being rampy, and apologies for bringing up the other share, but this is O&G sector meets agriculture so wanted comparisons and crop trial thoughts.

.....Just my two cents, and whilst initially frustrated that N2 sales weren't achieved earlier, its clear (at least to me) that the company is doing the right thing in exploring the most valuable use for the gas first.