Member Info for HopefulDave

Knew you’d be back today Diane with your rounding down abacus, although with your negative posts elsewhere you have once again thinned yourself out and got your numbers muddled up. “North of $600,000” more than. But let’s start at $600k because you are trying to paint the worst imaginable picture possible eh? Good old reliable Diane and the disappearing money. Then let’s assume that only oil comes from the wells despite a very healthy amount of gas... Of course you won’t bother to mention the near 20% current increase in gas prices since then, and we aren’t even on the full winter demand cycle yet.... Besides we are talking about another month or so away by which time the prices will no doubt have bounced around anyway. Don’t forget to forget the fact that water will be used in this environment and also pulling in some small additional revenue which was not included in that forecast figure.

http://highlandsnr.com/colorado-shale/

Water water everywhere....

Our gas pipeline.....

Nice shiny tank battery....

Progress...

Not sure what to make of those dates.

Spacing application is in for hearing on Dec 17/18 2018.

On some they say Dec 17 for construction start with June dates for reclamation to start.

On the section 9 pad it has 14th November 2018 to start and interim reclamation in April 2019

Not sure we’ll be doing anything prior to spacing permitting etc, but aware there were some old pads about that it’s possile we may be re-using on some of the land.

Anyway. Would have thought we’d wait for permitting / funding before starting anything physically, but who knows?

If you read my post back I said there would have been some options. However, it’s much better not having to rely on those options!! That is pretty obvious! If it passed there were avenues to explore, but who wants to go down other avenues when you can carry on in a straight line?! It is fantastic news that it failed make no mistake about it, I never said it wouldn’t be great news it failed, I highlighted the fact it wouldn’t have been game over if it did.

But Kansas is 2,200!!! ....

5200 acre WD 2200 acre Kansas What a great day

... But perhaps the fact we only have 118m shares in issue, only 29.5m more could be issued, alongside RP’s warrants and the fact at present a few hundred thousand shares can move the SP is both a hindrance but also a blessing... This is so far off the radar with a lot of people, partnerships and sales $ have a habit of changing that however...

It would only become a problem for me if I had to sell, so I do genuinely feel for anyone who has lost money because they have had to (or chosen) to sell. My average on the other is still very comfortably below where it has been back to and recovered from of late (there) and yes I’m underwater here (purely on the basis of investment into here) but not worried. So as I’ve stated before, my investments are aimed at 2021/2022 timelines for the big rewards, but I fully expect very nice rises on the way long before that both here and there. With our MCAP as it is and the kind of revenues one could expect from Kansas let alone elsewhere, I’m not concerned as I believe the company has more than enough time to bring these to fruition. Partnership deals with major blue chip companies and expected revenues from Kansas would have an immediate change of sentiment and shift here. As for the other one, it won’t have explosive revenue for several years, but that doesn’t mean it’s value is not going to rise, it’s about to have $3.6bn (albeit mostly debt) available to it but that is developing an asset with what people can now see as a real value product (with previously negative ICL having switched to and now increasing their own mining and production of their Poly product to 3Mtpa...) Different sectors, but look at all the tech things like WhatsApp etc. having valuations of billions of dollars based on zero revenue at the time but you can see the potential value of the assets / future revenues in waiting... As long as you have a method of funding yourself, the ability to deliver, and the underlying assets, then ultimately those higher valuations have a very good chance of being achieved. Some of our plays are riskier than others, some are there, it’s just a question of moving the product from a to b really - queue the snipes about plastic pipes etc. - But really. What is it that needs to happen in Kansas? People want nitrogen, people will pay for nitrogen, nitrogen needs to get from well head to some form of transportation to a processing facility or customer... There are lots of potential customers, there are options with regards to processing facilities. I’d love an RNS on Kansas and the SP to jump accordingly on the back of a $ inbound update. It would be great. But if I found out later it could have gone a further 5p,10p + xxp but we jumped into bed with the first willing paying customer / partner and a better one was waiting, but not quite over the line yet, I’d have the right hump, and that would not have delivered shareholder value, it would have short changed the shareholder... The SP is incredibly frustrating and I’m sure I’ll get the usual backlash jam tomorrow etc posts. If you need the money now then I understand the promises of shareholder value creation etc are not there yet and people are underwater. But perhaps the fact we o

The fact we have publicly stated it is going to, means there is no need to notify to say something is as it was said it would be. I don’t agree with RNS’s every 5 mins. I do believe we could communicate better on website etc for things like that however...and I do believe that is something that should be done (and have mentioned that) On the flip side. If we were desperate to place, don’t you think they would be pushing out micro updates..

FYI. For clarification. Well at 5 miles isn’t all producing, it’s the length of the overall drill. The producing section being 2.5 miles long.... don’t want to seem to be misleading. Point being. 104 wells currently, some of which are that magnitude is, as alluded to before, a play which may well cost ~$500m in total when you have developed everything. It’s massive. It’s the scale of these projects which should make people think again about the acreage we have in Montana, and even the acreage we have now in Kansas. (Not even thinking about the CO2) and overall scale of these projects we are looking to develop... Kansas suddenly being unveiled like WD has, on land we can drill on, already proven etc. What then with even a 16 well+ programme or something.. and gas we can sell / about to sell... What if we announce a strategic partner and go 50% on a much larger piece of acreage or something? We are clearly not looking at small projects now.. I’d rather wait another day, week or whatever to find we kept an extra x % of a play or got an extra 50c or $ an MCF for the Nitrogen etc....

... Clearly we want the board to deliver Kansas in terms of: The development plan. The plan to get the nitrogen to market. When it gets to market. And then expected amount we think we will take to market. Possibly with final acreage expansion / capital injection / partnership. The fact WD was up to 48 wells a while back and now you can see 104 applications in, for some wells which are 5 miles long, should be a clue as the scale these guys are looking at, the partners who they are talking with to develop something as massive as that. We all want that $ inbound RNS but.. One assumes Kansas is progressing just like WD has been progressing as per the strategic update, and anything that can be released will be, but we will hear about it when it’s ready..

It’s unlikey that they would have announced any more on WD today. No point poking the hornets nest. Once the vote is done however, then one assumes we will hear more of WD and rightly so. This *obsession* with near term goals that would move the SP instantly back up *only* as something to be discussed is the reason why we are where we are at. Yes we need that confirmation of where we are heading short term, but it’s the detachment of the companies strategy and goals and what they are setting out to achieve that will deliver the shareholder value that the company speaks of that has us down here also. It’s all well and good announcing you have X or Y but investors will want to see not just a revenue stream that is there now, but what you are looking to do in the future, how does the company look to grow? WD is one of a number of big picture large projects the company is involved with. Scenario a: 112 passes and we lose ability to drill all wells there but move pads onto federal land and still have a significant number of wells **on some of the now only land that can now be drilled in Colorado....** - Value of that play then? Scenario b: 112 fails and we have a monster development looming on the horizon. So board filler? Would Helios or water be a board filler? Is discussing the medium and long term strategic goals of a company a board filler? I know everyone wants to see more $ in the bank immediately and commercialisation of our assets, from any one of our projects, but the size of these plays on the side is huge. As soon as revenue or partnership funding is released, it’s not just a case of money in bank it is what that money in the bank then goes on to fund / move these projects forward and those rewards that follow them that will deliver the bigger rewards. Assuming Kansas etc delivers funding and we get up to 20’s / 30’s again I bet loads of people will bail out, but if they understand the potential of bringing online these other projects (alongside continuous revenue flowing from Kansas) then they might want to think about holding on for the bigger prizes! ED progress aside, Kansas is the play most likely to reveal a path to revenue / partnership in the short term, bar some crazy DTU curve ball. The reason there is no RNS is because there is no news yet worthy of an RNS. The company release a strategy, and work towards it (WD) and its all “jam tomorrow” so what do you want them to do? Release an RNS naming the companies they are in sensitive commercial discussions with? Tell us and the companies they are trying to get the best price out of, or a higher % of capital investment that they are the ones with the best deal on the table before the deal is signed? If the deals aren’t signed then isn’t that “jam tomorrow”? Clearly we want the board to deliver Kansas in terms of: The development plan. The plan to g

Hand map / location. https://localtvkdvr.files.wordpress.com/2018/11/jeffco-10-30-18-rocky-flats-drilling-app-plus-westminster.pdf

Make that 105. They keep coming. Think I saw somewhere up to 109 might get filed so, maybe just a few more to pop in!

Postal votes have been going on for a while. The polls do close tomorrow but will be 7pm in Colarado and therefore very early morning UK time on Wednesday. Not sure how quickly they tot up the results and declare them accordingly. Some things that are worth noting: 1.) Even if 112 were to pass it would take 30-60 days for the governor to typically sign stuff into law. Given that none of them want 112 to pass (governor who is current or those standing for election) I’d imagine that would more than likely take closer to the 60 days! 2.) Even after that there is still a load of uncertainty as to how the backlog of anything that wasn’t approved in that period would be dealt with... 3.) Coupled with the fact a large portion of our wells requested are currently being on pads “just outside the boundary” to keep the greenies happy, it is distinctly possible even if 112 were to pass, and our applications not get approved in the time it takes to sign into law, that. a) grandfathering cases result in permits applied for under the old regulation stand as valid anyway. b) the pads and wells are re-requested just inside the boundary, given all the arguments for 112 in the first place which were “do longer wells” and “you’ll still be able to drill on federal land” etc Just so happens some of ours are whoppingly large wells and just so happens if we were to shimmy our pads X feet in Y direction we’d be on that federal land they were stating categorically “you could still drill on”.... Of course not all as black or white as that. Plenty of grey areas, but by no means is WD dead in the water even it 112 were to pass. Not all our new wells are slap bang next to the federal land but a large portion are. Anyway. 104 drilling permits are now visible on cogcc website for those interested in looking.

Wells being posted up.

As for sampling of the Argon itself, I guess that depends on how much Argon they need and the process used to extract it. I would hazard a guess that they have flowed the gas from the well into a tank for processing, then shut off the well, then condensation testing is commenced on the gasses to separate them accordingly. I wouldn’t have thought they would have put something in place to deal with separation of gasses at the rate it flows as would be bigger / more expensive unit and if they had that, they would no doubt have trucked off liquid nitrogen by now. So my guess is it was flowed into a storage tank and then using a smaller condensing unit or something to separate the gasses. Could be wrong, but thought that would be the most cost effective way to do it.

Blue. I honestly have no idea how many they could get on there in total, or if they would even entertain horizontal wells and acid fraks etc. But doing the maths with just a handful of wells is still some serious money, so unlike some people I’m more than prepared to wait and see the play unfold alongside the plans to develop it!

Kansas is indeed the most likely instant source of additional funding / revenue from any of our ongoing projects. Unless there is some super curve ball, Kansas is indeed key. All the “fuss” about WD currently is pretty simple really. It’s a monster application. If you averaged $5m a well and developed them all it would be a play that would cost a ***half billion dollars*** + by the time you had developed all of them! So you can see the size of it. If it gets permitted, then you have a ready made drill frenzy for a major to walk in to.. But it’s split over multiple pads, sections and drills. It could go as one big kahaoona burger, or be developed by more than one operator / partner simultaneously.. 16 pads and 109 wells in total from what I can see. So RP “failing to deliver” - FFS! Stategic update said what they would do / try to do. WD: You can see the work that’s gone into WD now it’s there before your very eyes... it is a monster application. Have they been sitting there going wibble with pencils up their noses in Kansas? Of course not!!! Just because you don’t see everything in front of you does not mean they have failed to deliver anything. All the evidence is actually pointing to them delivering exactly what they set out to do in that strategic update. I’d expect just as much effort if not more has gone into Kansas as has WD. So although WD to some doesn’t appear to be a jaw dropping play... Maybe just maybe when Kansas suddenly submits a plan similar to WD (not saying as big unless acreage extends again, but when see even an 8 or 16 well plan, maybe even a frak plan like Fadec pointed out with the CO2 well) possibly more acreage and a partner? Perhaps maybe there will be an “oh that’s what they’ve been up to moment” come to light! Not only have we put to paper a half billion dollar oil play, but we have already nominated lands in the coming auction... to do it again.... with what? RP’s shirt buttons or funds from a placing at 10-12p? Me no think so! So yes Kansas is key, but if you think there is no progress beyond that one well and one person waking round door to door. “Hi, I’m from highlands I’m here to sell some gas” <door slams> Really people? Come on... look at the big picture.

All 31 permits that were listed in the newspaper articles are now online for your viewing pleasure.

Some whoppers in there at 19,500FT TD.