Member Info for HopefulDave

Blacksheep, in all fairness:

The lease was signed in June.
They drilled it within 3-4 weeks.
They knew it was nitrogen and the higher flow rates a couple of weeks later.
The gas was sampled as it was.
The PSA was designed for site and deployed, required to separate the gasses and provide samples accordingly, this was what another few months before completed?
The gas analyser used at site then discovered the small amounts of hydrogen.
At this point we then looked at creating our gas streams including the argon to see if it was the right stuff or not.
The Nitrogen-Hydrogen mix (which would sell for a much bigger price than pure N2) was then made and obviously sent off to District 8 where a crop trial was started.

Now don't get me wrong, it would be lovely to have sold large amounts of N2 already BUT:

It is the companies responsibility to us as shareholders to deliver value, *over time and to the maximum possible value* before JJAL goes off.

HNR cannot help how the market is currently reacting to this, without $ figures (sales) attributed its struggling to be valued by anyone.

Does it mean they haven't delivered value? Or is it like the development of a new drug, or a new processor or something that you know nothing about really until its like "oh wow - right yes that works and its worth a tonne of money?"

*IF* we were going cap in hand to the market constantly during this development process, as opposed to selling some nitrogen (in some way) from the site then yes that could be deemed long-term detrimental, but we haven't, we have used our ED money well to get this far with the project as it is.

BUT as we have not. We have not sourced extra £, we have not diluted, we have revenue inbound from developments at ED, and with a small team have progressed the Epiphany play also (that we can see) and who knows what else yet that we can't.

I know everyone wants to see revenues coming in, ultimately that is what will really make the company take off, however, it is not quite a case of, we found in it in June and only sold $8,000 worth. We found it in June and have done all of the above also

Perhaps if the trial is successful, then a different approach than piping it en-mass to a facility is the way to extract maximum value from the well?

How many MCF used to treat 50 plants? Even at $10MCF for the N2 if it was piped out, that would be the well flowing for 8 hours freely to get the same $8,000... I bet that could treat a whole load more plants...

Piping the N2 away would no doubt be a commitment to supply the entire wells flow to the facility, alongside others no doubt. With that in mind, it would be foolish not to exploit the most valuable option for the gasses first, then drop back to "just N2" if the crop trial didn't work.

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 valuabl

Which paid ramper(s) would that be OSG

Oh and Antha, you “moved on” so decided a year after the event you’d, you know, after moving on, open an account on LSE and come here and tell everyone about it, cause you know, after moving on, you thought that was the right thing to do!

Priceless. Better go make another account and come back with something more credible!

I’ve been buying more recently, rather than crystallizing losses, I’m taking advantage of the low share price thanks.

Funny as that’s the only comeback you have as you can’t address any of the actual points in my previous post

And JJAL. Supposedly an investor and attacking the post below, all 100% factual, no ramping whatsoever, but let people make ridiculous accusations, posters who have previous for coming here saying we are drilling in the wrong place and won’t find oil etc...

Again I repeat: FACTS.

We are a distribution partner to Epiphany, have proven the water recycling works, have achieved revenues from this already and should continue to do so without further capital expenditure to ourselves.

We aren't the operator on site in ED, and yet the operator there has allowed us to pilot and prove this works on their site where they are bringing these wells online..

Clearly, this was just a ruse by True, ConocoPhillips, and Halliburton, a trio of company's worth tens of billions of dollars, to facilitate HNR as a "lifestyle company" and had no benefit to them whatsoever either in the site itself or with any further developments elsewhere. - Note - the sarcasm here before I'm misquoted on that!

Furthermore, there is Kansas, where we already have a crop trial in place, that if successful (and there is no scientific reason to suggest why it would not be) we could be producing a gas that sells at a very high price indeed, failing that, the nitrogen in itself has not insignificant value.

Look at District 8's facility, its a state of the art growing facility, growing a very high-value crop, again, why would they even look at this if there was not a significant benefit to be had by them (i.e potentially increasing crop yield within the same footprint) Are they just doing this to make jam tomorrow RNS's for HNR?

Add those to ED which as Fadec has pointed out we have big strategic partners involved, and if there is an expansion with the additional sections or other lands in East Denver, we stand to benefit from a free carried ride on that, alongside the potential to use our partnership with Epiphany to bring in further revenues there...

And just before the wells come online all these informative posters arrive, trying to convince us of high expenditure and mystical trades made a year ago, and deciding now 1 year later to create an account on LSE and tell us how lucky they were.

Just to address both those points, our main focus for 2019 as already highlighted in the last RNS's are not capital intensive to us.

We are a distribution partner to Epiphany, have proven the water recycling works, have achieved revenues from this already and should continue to do so without further capital expenditure to ourselves.

We aren't the operator on site in ED, and yet the operator there has allowed us to pilot and prove this works on their site where they are bringing these wells online..

Clearly, this was just a ruse by True, ConocoPhillips, and Halliburton, a trio of company's worth tens of billions of dollars, to facilitate HNR as a "lifestyle company" and had no benefit to them whatsoever either in the site itself or with any further developments elsewhere. - Note - the sarcasm here before I'm misquoted on that!

Furthermore, there is Kansas, where we already have a crop trial in place, that if successful (and there is no scientific reason to suggest why it would not be) we could be producing a gas that sells at a very high price indeed, failing that, the nitrogen in itself has not insignificant value.

Look at District 8's facility, its a state of the art growing facility, growing a very high-value crop, again, why would they even look at this if there was not a significant benefit to be had by them (i.e potentially increasing crop yield within the same footprint) Are they just doing this to make jam tomorrow RNS's for HNR?

Add those to ED which as Fadec has pointed out we have big strategic partners involved, and if there is an expansion with the additional sections or other lands in East Denver, we stand to benefit from a free carried ride on that, alongside the potential to use our partnership with Epiphany to bring in further revenues there...

So thanks for your not very informative posts. I'll stick to my own extensive research thanks!

“Milking the company like a cash cow.”

Quite frankly lost all credibility at that point I’m afraid. If the current costs were 500k then Roberts share out wouldn’t be very good for someone who is milking the company.

With his current shares and the warrants his possess he will milk the company with dividends when the cash cow is full of milk, along with any other shareholders at that time.

Again no surprises with more and more posts of this type coming up the week before news on all the producing wells comes up. It’s what this site does best!

No offence was taken.

IMHO more revenue will attract newer PI's and II's will likely be attracted to more significant revenue and MCAP increases.

Many have been spooked with falling markets in general, concern about the O&G industry and falling oil prices, along with the delays to the wells coming online.

I imagine lots of people would fail to acknowledge any value with Kansas as yet, which is by itself so not really a traditional oil and gas play thing its something totally different... I guess in general people don't really know what to make of it yet, but they will come if $ is attributed to it and earnings can be modelled / gas sold accordingly...

As it is the markets may well pick up soon if Trump and the Chinese play nicely, oil would then recover further, and we will hopefully release details that all 8 wells are either in production or flowback, that could all come very very soon and possibly all together.

Meanwhile, those plants that have been treated are hopefully outgrowing the control experiments... All progress, just progress you can't see right now..

I see Vox has just mailed a weekly review out and we are billing number 3 on it....

ChesireLad,

Trying to predict 3 or 4 years out if a company at our stage of the growing progress would get or get/take a takeover bid is a tad far out for me!

Where will our projects be then?! How big will we have grown, will we have more directors with skin in the game also?

For me, the company has done three things which make an overall takeover somewhat less likely.

1.) We have restructured the share capital to enable us to pay dividends -> That equals money out.

2.) The company has a number of subsidiaries so depending on how we develop some of the plays it would be possible to spin off entire entities and continue on focusing on a number of other projects.

3.) We are a little more diversified than a "traditional o&g player" already.

So it is possible when proven up, we could in the future sell off individual plays of the company, and receive special distributions based on part of those sales.

Looking out beyond 2020, at this stage, is difficult to see where we will be. Our large development depends on the initial successes of Kansas, and Epiphany at the moment, our ED wells generating $ and hopefully an extension in ED revenues albeit Epiphany and water or +16 well based and water also.

In short:

Dividends:- RKBeekeeper posted a while back on share structure and expected a maiden dividend in 2020 and I'm pretty much aligned with that approach, and I think we are well positioned to grow and if required (offered) to then dispose of aspects of the company when proven up. If that makes commercial sense and then allows re-injection of cash into other existing (or newer) developments, alongside potential special dividends if that happens..

1.) idk I can’t control the market I’m not a god.
2.) I thought you would be positive and negative in posts, why is there hardly anyone selling if things are so bad?
3.) Lol. Takeover / buyout. Have you seen the volume? Care to suggest how you would sneakily buy ~35,400,000 shares with nobody noticing to get to 30% to make an offer before the SP has shot through the roof and Robert exercises his warrants shortly before you even get there so you have to get to 43,000,000 odd to get to 30% and even when you do that the company BOD and diversion and Melvyn and a few other shareholders would still be able to prevent getting above 70%... etc etc.
4.) forgive me for not being a multi-millionaire, I did buy another 37,842 on 28th.

Hope that helps.

OSG1 - “Be honest - in your posts ALWAYS highlight positives as well as negatives.“

Let’s hope JJAL and you stick to that.

I focus on the future positive aspects, always have and never flip - flopped my position as many others have done.

I’ve mentioned past things haven’t always been great, and just for you I’ll recap some.

ED Financing with the private equity u-turn and the deal we needed with True to keep going with ED being an example.

WD another example, although heavily hindered by outside activity (prop 112) it certainly was a hot potato at the time but could have been handled differently all the way along, and I’ve already mentioned that to Robert as well, who humbly agrees it was a very awkward situation to be in.

That said here we are now:

We have a 7.5% carried interest in 1 back in production well.
We have a 7.5% carried interest in 3 wells in flowback right now.
We have that again not far behind it.
The site has a gas pipeline which, could be extended further out.
We have the possibility of expansion to 16 more wells or more if we find any other opportunities to develop with the same partners collaborating.

Will we expand beyond 8? Who knows, if it does it’s a significant free asset expansion and additional revenue generator to what is confirmed today.

Epiphany: Proving itself technically. And effectively another free carried interest development. With True, Halliburton’s and ConocoPhillips involved in the ED site, that’s some major exposure to the setup. A setup that we were allowed to do despite the fact True are operators and we remain present as a carried interest only.. I would hope as this next season of development cracks on water issues prevail and the Epiphany solution can be adopted elsewhere. Meanwhile we have the potential to develop a water processing solution in ED.

Kansas: Samples of gas produced and sent off. We await the crop trial results, other developments to come from there. The impatient screaming for sales and $ now, where $5-10 MCF could be achieved with liquid nitrogen alone, but the potential rewards of an organic fertilizer gas is well worth holding back for, add a zero and upscale the first number?

WD - we should return to, it remains an asset just needs a more delicate approach, a handful of wells there would add great value even if just one or two pads go in eventually.

Helios - again. Will return to, offers great potential but will need time and probably partner $ to develop later on.

So there is lots to be very positive about. Many have put money into companies with one or two projects and lost everything, been diluted massively and have no hope.

This is not one of those companies.

Revenue stream inbound.
Capital free investment opportunities. Epiphany or partner financed.
DTU - I think we will look for our own opportunities when have more $.

That is balance and reason for you. Rambling on about the past won’t turn the SP around but

Indeed, or another 37,842 on the 28th but who’s counting right...

At the moment I already feel like Mr Creosote, and I’m not referring to turkey dinners.

And besides it’s not pay day.

Nothing is brushed under the carpet and my last big post you said was reasoned as did OSG1.

Yet no sooner than a week or two later it’s back to scathing attacks and 100% negativity from you again.

And anybody saying anything positive is now “jumping on a bandwagon”

The wells are coming online.

If you were reasoned or balanced there would be some kind of acceptance that 50% of the new wells are coming online right now, and the others should follow very soon but you don’t even acknowledge that as any sort of positive at all.

Of course it would have been better if all 8 wells were online in that RNS but it’s still progress but you fail to at least acknowledge those back online and flowing now is a positive.

It’s just bash bash bash abuse negative post etc.

Another simple rule of life is to try and take positives out of situations as opposed to always looking at the negative aspects.

There are positives here but everything is negative and down and depressing with you.

So is it 8 wells. - not quite, but you hear half are online and flow rates are similar to experienced last time and the wells should perform like the original two and there isn’t a single part of your posting that reflects that as a positive, and yet you “bring balance to the board.... “

JJAL instantly blaming RP/HNR for things outside of his/companies control! - Priceless, I can’t wait for more “reasonably balanced posts” accordingly.

For Clarity: The weather and True being the operator does not equal RP / HNR responsibility.

The fact we now have 3 new wells flowing, alongside Powell and expect them to be perform the same as existing wells, and Wildhorse also to come back online soon is still good progress if been hindered by the weather.

In the meantime I look forward to more “reasonably balanced posts” to fill the gaps between our RNS.

FYI - Weather forecast for next 14 days in Denver has it warming up considerably from the nasty -20c it’s been down to, barely touching freezing after tomorrow, so things should pick up pace and continue to progress.

Blacksheep same to you and all holders, wish everyone a great and prosperous new year.

Personally hoping relatively soon for:

ED online and IPs shortly:

Epiphany progress and documented evidence to its success both in terms of treating the water for re-use there and future plans elsewhere:

Kansas options increasing:

With Epiphany, possibly expanding our own ED facility, uptake in other locations and by our partners, who clearly are collaborating with us at the ED site. That is True, Halliburton’s and Conoco. Ask yourself why let Highlands play on their pad, when we have a carried interest, what’s in it for them?

The ability to make their own operations elsewhere more cost effective and see first hand how this can benefit them as well as us...

Kansas: Already capable of sales of gas from the site, the PSA and well facility there is obviously capable of providing gas that could (and is / has) been used in the cannabis trial. It’s not the same as piping the entire stream out to be processed and receiving revenue every day, but if that was getting $5-10MCF as liquid nitrogen it would have delivered (and still could if that’s the avenue we go down) $12,850 - $25,700 in revenue a day (minus whatever royalties etc) but would have led to a healthy bank balance very quickly.

How much nitrogen-hydrogen mix do you need to treat the soil and grow just 50 cannabis plants? $8,000 worth. I bet they didn’t transport 800MCF ($10MCF Nitrogen comparison) to treat them did they, hell no. So what’s that worth...

Those that understand the fertilizer industry know the potential value of this, and fortunately we have advisory board members with a big agricultural background as well as oil and gas and **investors** here (me being one) that do also having closely followed that industry for several years now.

I’m happy with the companies overall position here and looking forward to the start of 2019, yes there have been some negatives in 2018, but we are well positioned as a company to start 2019 with multiple revenue streams possible. I’m looking forward to 2019 here and I think everyone else should also.

HNY all.

Oh dear another’s negative troll just before the wells come online what a surprise:

The events as per COGCC documentation and RNS process.

* Wells were shut it to protect them during frak process.
* Existing gas plant was decommissioned.
* Gas pipeline started progressing.
* Frak process was halted due to water shortage.
* Epiphany project came along.
* Gas pipeline work progressed further.
* Fraks started again.
* Partiial flowback of a new well (Grizzly) to calibrate Epiphany nothing more.
* Powell and Wildhorse connected to the gas pipeline that is installed on site.
* Fraks finished.
* Plugs from Frak jobs being removed *currently*
* Wells will be flowing back as plugs are removed.

Simples. No problem. All good. All progressing as per companies RNS releases, backed up by documentation on the COGCC website.

Happy XMAS everyone.

Jof, it’s definitely a complicated mix / situation.

On the one hand you have Renegade clearly holding out for a better deal of some sorts. On the other you have us (now effectively our partners in the driving seat) so that’s a mix of True / Haliburtons etc that have a stake in the situation.

The gas pipe that existed was cut off to that section by Anadarko, effectively rendering the site not able to go into large production as there is no ability to take away the gas produced.

The interesting developments are:

1.) Highlands Water Resources project details state if they commence drilling on those sites they would look to pull back water and treat it / I guess possibly initially even provide some of it.

2.) Gas pipeline extended down to our section could be extended further down to those sections, enabling the development of the site. Lets face it the parcels joined with Renegades are Conoco’s and it’s a Bronco pipeline which are effectively Conoco..

3.) True as partners and having a stake could drill it.

4.) Halliburton’s as partners and having a stake could frak it..

So all the pieces needed to develop it quickly, are there, just one small problem. Ed at Renegade needs to provide a surface use agreement. With that our original spacing would be valid as would be all the permits we have done to date.

So can Ed haggle with those partners? Perhaps a deal to help develop other sections Renegade have using one or more partners to assist, provide a gas pipe to other land they have etc.

Plenty of options / dangly carrots. Maybe just straight cash, but options either way. Seems silly not to do a deal of some sorts, but a few parties involved to discuss/agree. Had plenty of time to think about it / discuss it however..

Anyone thinks a no deal brexit should harm SXX in anyway is quite frankly not looking at the biggger picture.

Earnings will be in dollars, we will probably be eventually exporting 18Mtpa *outside* of Europe and about 2Mtpa to it / UK.

A world where we (UK) can have much better trade relationships with the rest of the world, basically our majority marketplace... and that would be bad for SXX how?

In no means starting a Brexit debate, but the thought that a no deal would be bad for SXX... ?

Casapinos suggesting that any placing for $400-600m would be at a discount to the current SP is stupid.

IF that amount is to be raised it will be done on a post ST2 valuation, not a pre ST2 valuation as $3bn will be in the bag and that $400-600m IF placed would be underwritten.

The last placing was done based on a field, not as many sales, and ~2 years less building progress, plus this current ST2 fundraise to come.

This, if it is a placing fundraise, will be based on an end state of a fully financed mine, endorsed by the banks and with $3bn to turn into an asset, ie a working mine producing billions of $ a year.

Put this way:

If you need to place to keep the lights on on a cash burning company = placing at significant discount.

If you need to place after winning massive contracts and need capital to grow or having already secured $3bn of other “investment” (albeit debt) then that’s a completely different prospect and places a significant upside to the valuation of the company as part of an overall package.

Helios2 : - almost forgot!

Again probably on the back burner whilst we develop Kansas and the water play and monitor the well as per the RNS. No doubt discussions may occur with regards to water provision to the Powder River Basin also, and any further modeling that is done on the basis of well monitoring will no doubt take these additional options into consideration.