Member Info for HopefulDave

Lol Galini. A slightly longer response...

With regards to the next RNS question, take your pick....the SP is depressing, unless of course you are still nibbling away and keeping in mind the number of opportunities for development and revenue generation capabilities in 2019, alongside ED coming online imminently...

East Denver:

Flow-rates / Initial Production figures.

Possible negotiation and subsequent extension of the ED play with additional free carried wells.

Water update with Epiphany on plans beyond the trial itself within the ED site / surrounding area.

Kansas:

Update on application for organic status of Nitrogen-Hydrogen gas mixture.

Update on cannabis crop trial, extension of other high value crop trials?

Further land acquisition in Kansas, further development options / additional well drilling plans in Kansas?

Samples of other rare gasses sent out and subsequent test results / applications associated with them?

Additional sales of any other gasses from the existing site?

Epiphany:

Further expansion of exclusive distribution rights into other areas?

Initial revenues to come from any deals away from our own East Denver play?

West Denver:

Possible new initial limited development plans unveiled for the least inhabited side?

DTU:

Likely (IMHO) to be quiet until we have a method of providing and transporting larger volumes of nitrogen (unless of course we can from PSA site?) but something could always curve ball out of here..

When have additional revenues (or private equity financed) possibility of accruing lands cheaply that would benefit from DTU applications. If also coupled with the ability to pad base water processing operations for fracking with Epiphany units, could be a compelling business case out there?

CO2:

Again (IMHO) likely to be quiet during 2019 unless Kinder Morgan develop the pipeline to the area in which case buckle up.

Just some of my thoughts on possible next steps for the company. Clearly delivery of ED is imminent, water play is a strategic goal for 2019, and the crop trial(s) have the possibility to open up gas sales in a completely (and more lucrative) manner from Kansas than I even thought we could have.

JJAL. - Do you not read RNS’s?

“Are we supossed to get excited about the small income from the water and a one off sale of $8000 of Nitrogen / Hydrogen for 50 canibis plants”

Urm. So let’s get this in perspective.

1.) how many canabis plants grown in the US and Canada yearly?
2.) recieved $8,000 for enough gas to treat 50 canabis plants.
3.) applying for organic status.
4.) repeat. Received $8,000 for enough gas to treat ** 50 plants *** whilst it’s not yet even got organic status

So excited about “a one off” no not really. Excited about the fact a nitrogen-hydrogen mix could work out at a similar price to that of Helium per MCF? Absolutely!

They serve a purpose, if they prevent others from buying they enable me to keep nibbling away at these low prices!

At the end of the day. I’ve met Fadec92, and several others from LSE, so can vouch as to them being real people and invested.

Whereas our tag troll team, may well exist solely behind a keyboard and in the mind of one person for all I know, and both ID OSG1 and JJAL only have a posting history in this share, are constantly negative, and try to discredit all the things that if any one of them comes off would get them out of the imaginary holes they are in.

So what’s more likely? Fadec92 a “paid ramper” or JJAL and OSG1 solely existing as trolls?

Anyway. Pay day today so might nibble away at a few more, keep it up JJAL and OSG1, I know you’ll be really happy to know the longer it stays here the more shares I can buy. Thanks.

Did you miss out the t ?

Could I just congratulate the BOD on a fantastic achievement of raising the SP ~4.5% since 11:00.

Clearly responsible for the 9% drop this morning with somebody or some people selling ~100,000 shares in total, I’d just like to say they have delivered great value since 11:00 by the price rising 4.5% by again nobody with anything to do with the company, nor any notification by the company resulting in a 4.5% rise.

And yes, just in case you don’t get it or misquote me again JJAL - It’s called sarcasm...

Noodle. Yes. Pipe it to a large facility, liquify it and sell it? - we are still expanding the acreage so who knows how many wells, where need to go from and to? I don’t have that information. (Argon/helium) and new plant option interesting options / side plays to the overall nitrogen use, alongside DTU itself. 3200+ acres. Might have multiple uses. I believe they should have.

JJAL. - I’ve already replied. What part of that states all efforts going into WD?

Eski. I agree further revenue streams will make a huge difference here. For me, clarification is there with the revenue expected and cash in the bank for me not to be concerned. I can see further revenue opportunities with Epiphany opening up and Kansas I’ve been happy with for some time, even happier now there is another potential application for the gas use. Just to rattle JJALs cage one more time I’ll say it again, all we need is a plastic pipe.... and on that note. Goodnight!

JJAL. - you repeat the same lies and I correct you on them every time. I’ve never written off ED. I said I didn’t expect more than 8 wells after the situation got sticky with Renegade, I said more than 8 would be a bonus and as a free carry at 7.5% would be a very welcome one at that. More to the point further expansion there is at zero cost to us. WD - I haven’t written off either however given all the negative publicity around it I wasn’t going to suggest it was still a possibility until such a time the company were willing to publicly state it hasn’t given up on it, which they have stated now, will it ever be 100 wells, unlikely, but any number of wells now would be perceived as a plus. And I’ve also never stated all efforts going into WD you are again making stuff up. I’ve said, ever since it appeared, Kansas is the huge play for us and the one to watch, and I still stand by that. WD on paper with 100+ wells as a possibility even at 7.5% would have been huge, if that still plays out with partners funding any number of wells it, would be still be a bonus. I’m cautious on it for now as it’s clearly a bit of a hot potato. At the moment (for me) anything that develops there is a bonus, like further ED development would be. Again it is touted as being funded by partners so will watch the space and if anything happens there as a free carry it will be a result. The post I was responding to was around cash burn and income. As further ED is paid for by partners, and WD is touted as being a similar approach I hadn’t mentioned further development on either as not relevant to ongoing cash commitments, nor immediate revenue as additional wells on either would likely be way later in the year before came on line. I hope that clears it up for you and you remember this time and don’t miss quote me again.

Eski. Cash run rate 12 months to March 18 was based on us as operator of the wells, we gave that up from May 1st, our operating costs have therefore considerably reduced since then.

The wells are from the same pad, into the same formation, from the same drillers, and same completion (frak team) so its fairly safe to assume the IP's would be similar.

A reminder that the first two were done simultaneously and these 6 wells are drilled and completed with the additional data gathered from the first two wells before they started.

Helios, as they have stated, is a case of monitoring at the moment, and not spending money on the project and do not expect much in Helios in 2019 as a result as a cost or expense for Helios. The water aspect of that play could change that if one of those funds decides they want water we can produce. It is likely however we will park and monitor this until Kansas produces $ to develop it.

DTU - Again costs on that now practically zero until we push it forward. The last test we carried out we did at 50% of the cost to ourselves, that was with very expensive nitrogen costs. I would expect, unless someone is prepared to pay the cost of the application themselves, this will not proceed much until we can supply the nitrogen ourselves. A logical step moving forward would be a 60/40 or 70/30 cost perhaps for the next test(s) with us paying less each time (or providing the nitrogen ourselves making up the difference - so zero real cost to us)

Epiphany has proven itself to clean the water, and we are now a (zero cost to ourselves) distributer. Depending on the cost to the operator and the savings they make, I'd be surprised if this isn't looked at in areas with high water disposal costs on existing producing wells, as well as those about to commence larger frak operations from spring onwards.

I'd be surprised if we didn't leave a unit behind to continue to treat the produced water at ED...

Kansas - wait and see what further comes from there, I'm expected lots.

JJAL - read the RNS again. It’s quite possible however that you are so full of **** you don’t understand the value of fertilser.

Ever since the nitrogen discovery was made one of the main potential uses for this was in the agricultural sector.

A gigantic clue as to that use was in the Highlands Nitrogen video.

You clearly cannot see bigger picture developments in the making.

One of our advisory board members is however an expert in the fields of oil and gas and has extensive knowledge of the agriculture industry as well.

As for Noodle - again confusing the patent ownership structure, costs and revenues of said application (DTU) and the nitrogen resource.

The acreage is highlands. The revenue from gas sales from the field is highlands.

Diversion own 25% of the DTU patents, they do not own 25% of Kansas. They will receive 25% of revenue from DTU applications after meeting the 25% of costs associated with it.

The above has no baring on gas sales of Nitrogen, hydrogen-nitrogen mix, helium or argon, purely DTU applications.

If DTU becomes a huge successs, then we will get 75% of that huge success.

There are 3000+ acres there now. Kansas will not be a single well and we have just decided to add 2200+ acres for a giggle. Any DTU use from Kansas will be negligible, the resource is far more valuable by itself and will be marketed accordingly.

When we can push DTU applications we will have low cost nitrogen of our own to use, of which the benefits to both Highlands and Diversion at that point become clear.

That’s my posting for the week. I’ll be too tipsy from here on in for further updates!

Well he can’t magically predict the IP of the wells can he?!

Keep in mind that these are going off the same pad into the same formation in a proven resource and drilled and fraked by the same companies.

So one can expect them to be similar flow rates and as we have more data to play with from the first two wells that have produced in the top 3% of wells drilled so far in Niobrara, they were in a better starting position than before.

Either they were just damn lucky the first time, or they know what they are doing, and armed with the knowledge of what was achieved last time and how, I would also expect similar results.

He can’t guarantee it though, so that’s why it’s assumed they are the same, you could read it the other way, in that they could potentially be higher, but of course that would be a JJAL ramp flag, but it is a possibility also.

So for now yes of course *assumed* but for obvious reasons some could be higher, some could be lower, not a poorly attributed word, but a necessary one as you cannot state actual production figures before you have them only expected figures. It is however highly likely they would be the same or possibly slightly better based on my point above.

Sub, great link.

I think the really interesting thing here is the diversification of Highlands.

Kansas provides a potentially incredibly lucrative transition from solely an oil and gas company, reliant on oil and natural gas prices, to a company that has oil and gas interests but also can also potentially benefit from the rapidly expanding agricultural and scientific sector with its rarer gas resources (argon and helium and an organic nitrogen / hydrogen mix).

The nitrogen also being suitable for oil and gas well use (DTU, or others applications with nitrogen) or conversion en-mass for generic liquid nitrogen.

Water is a significant part of frakking costs, and as we have found out the lack of availability of water for frak jobs causes delays, and therefore revenue held back for oil and gas companies and increased frakking costs.

These two diversified plays open more options to us and importantly **the Kansas acreage continues to expand**

2019 is going to be a very interesting year for Highlands, starting with bringing online the 6 new wells, alongside recommencement of production from the 2 existing ones, these additional plays should be transformational, and being funded by these wells is a big result.

* Self-sufficient*

Huge news in itself - If you want shares in Highlands - The market is where you buy them - No placings!

*ED*

6 wells frak has finished, existing wells will be back online ASAP, 6 new ones flowing back.
Epiphany -> Producing water and now getting $3.50 a bbl as opposed to $2.60.

*Kansas*

IMHO Being played down a fair bit. They have just increased the acreage by *another* 1,000 acres between this RNS and our last one 20th November!

Self-sufficiency is absolutely key. They are clearly getting more land in Kansas - tells you all you need to know...

Genty, whichever way you look at it you need a lot of water to frak with. The Epiphany solution could help the industry recycle large amounts of the water it uses, easing demand and earning revenues.

As for Helios2, the water produced from the Muddy formation was used in the water frak for Eagle. I believe it is suitable for fraking purposes..

If the demand for the Powder River Basin water supply for the Frak industry could be provided for by Helios2 wells, it would be a win-win all around.

So all jokes aside, I think the hundreds of millions of bbls / billions of bbls of water there is could be utilised, as with Kansas, all about getting stuff from a to b?

Kansas: Nitrogen from the well sites -> to be liquified.
Water from Helios2 -> somewhere that wants it.
Helium and gas from Helios 2 releases as water goes > to be processed somewhere.

3 puzzle pieces, 1st one if revenues expected in 2019 must be developing nicely.
Helios 2 -> Probably take some time, but no denying water is needed, and we have it... Intriguing?...

"If you say Half ars3d one more time, I'll take you to the fing cleaners"

Just in Life of Brian mode for some reason, happens every Christmas...

We may get something on the frak's tomorrow, or maybe, as already informed us that they expect flowback to commence this month, might just hear on Thursday that it has already commenced in the update on ED.

Or maybe it's still going... Tune in tomorrow or Thursday to find out!

JUDEA A.D. 33 SATURDAY AFTERNOON ABOUT TEA TIME Or At the latest Thursday morning with the interims.

Nokesa, I'm using analogy's to explain the situation in simple terms.

Working (albeit in IT) for investment banks / domestic banks for the past 22 years I think I'm familiar with large-scale projects and how funding of them works, I've seen enough internal "success stories" bulletins of how the banks I've worked for have financed very large-scale projects.

The banks are also commanding very large, thank you very much fee's for the work they are undertaking, on top of any interest rates which we will be paying, they will get their rewards accordingly, they do not require an equity stake to lend the money.

Your opinion that SXX is not in a "bank lending position" in your opinion is the flawed one, not mine!

The banks may broker the lending itself, they may well then sell bonds (not equity related) or other financial instruments to cover the lending itself, this will be an incredibly complicated piece of financing. I'm using the simple analogy of a mortgage to explain the situation we are in.

In simple terms we will get $3bn and have to pay it back, how the banks cover that, take on the debt themselves is up to them. We aren't going into the branch and talking to Joe Bloggs bank manager, we are talking with the Corporate Finance Teams who specialise in commercial lending of this magnitude.

GK has actually just summed it up nicely below, just before I post this..!

Dickyboy - Again comparing ST1 to ST2 - Chalk and Cheese.

Banks make money by lending, the interest rate applied will reflect that risk.

They lend money to you or me to buy a house at 1.5-2%.

They will be lending here at 6-8+%

That is your capitalising on the situation right there.

I think the point being made is.

"What is the security on offer?"

The asset of the mine, and what's been spend on it so far. The assets are deep underground but get closer every day with each bit of construction progress.

The IUK guarantee, the massive amounts of contingency now put in place in the big cost and riskiest components of the build contracts.

The fact the product is proven, ICL selling it and ADM etc backing it.

My whole point is, still way too much scaremongering and naughty shenanigans going on in here.

I've reduced my postings in LSE both here and elsewhere of late, but seen way too many doom and gloom posts over here so thought I'd add a few positive ones for balance!