Member Info for HopefulDave

I said it was going to be big! :)

Similar anti fracking propositions have failed in the past D14 don’t twist it. That’s what is inferred there. They raise these ballots often and continuously knocked back. COGCC has already increased distances to 500 - 1000ft as it is. So basically they aren’t going to count their chickens and in the remotest of possibilities that Colarado shoots itself in the foot and half bankrupts it’s state and all those mineral rights owners (people in Colarado that rely on this income) suddenly have rights that are worthless.... they are putting in the permits to “grandfather them” those submitted and or approved prior to the date are then “grandfathered” They stick stuff on the ballot in Colarado all the time This one is so mad it would render a vast portion of Colarado off limits and *devastate* the economy if passed.

Wow! I guess going to take some time for us to plough through those! Let’s hope some conventional ones in there. Did say that they would most likely have been working on these as the land is increasing and not wait until it’s all done. But 104! That’s immense. Fantastic number of wells :)

Blue correct. It’s a billion+ market. I only suggested low figures as accused of ramping all the time. Using low figures still showed a huge margin and therefore just how big Kansas can be. If it were to be at the same sort of prices we paid for nitrogen it would be huge, but for forget that’s what we paid for it delivered to site. I’m expecting us to bulk sell to more local markets, as well as use in DTU applications. So the numbers I was using have been $6-8 sales (company was $5-10 in their statements.

That isn’t answering the question. Why can you not see “with our great Kansas business model” A cash injection from a partner? Or debt? You do realise we could strike an offtake deal to sell the nitrogen at an initially seriously reduced cost price than is paid today to someone for some cash up front don’t you? Whilst still making a profit on it. A win win. The buyer gets nitrogen cheaper than they do today. We get cash to further develop the Kansas site, which in turn delivers working capital. Alternatively maybe we partner with someone and 60/40 or 75/25? Better to dilute an individual project than the parent company. Why not even debt? If you can prove the resource and prove the customer is there with a signed offtake agreement...... Or as I said before. Why not even sign an offtake (which would instantly revalue the company higher) and provide a cash for shares transaction as well? Could end up with strategic investor partner, owning 5-10m shares, at 25-30p a share. If the deal / offtake is big enough, we had plenty of working capital, a strategic partner as well - we’d open at that price straight away. And JJAL - I said I don’t expect water straight away to make a big difference, I’m saying these water plays are future plays, I expect Kansas will be the big thing for us this year.

Not suggesting either of those water plays will turn this dip around. I’m still hopeful Kansas will deliver that. But Why pilot it for a laugh? Why go to all that trouble in ED? Why submit a 90 odd page document to COGCC for a pilot, and have Halliburton’s water guy as the PM for it? I’m sure Halliburton’s have time to waste on Highlands frivolous projects.... and their water resources guy hasn’t got better things to do? True run ED now and Halliburton’s are doing the frak. If they didn’t want Highlands playing with the water situation they would have told them to f right off. They didn’t and their guy is the PM for it..... Why? Why would they get involved, if there wasn’t money in it somewhere down the line? As for Helios. The water play I’m most excited about is Helios dewatering, and that other basin that needs lots of water not too far away. You keep talking to your “well connected investors”, and leave Robert to pick up the phone to people like oh I don’t know. Maybe that fund with the $200m? Or maybe one of the other massive water companies that are starting up in the US to do nothing but deal with they water shortages in the industry over there? Do a little research there the water plays are huge, and I’ve already posted several links to big money in water for O&G services flowing in (if excuse the pun). They are both longer term plays as well, the Helios dewatering could turn out to be far less expensive to setup if “disposing of the water” is no longer injection wells and evaporation ponds but we actually sell the damn stuff instead! You would be silly to discount either of those as valuable plays, the most likely and beneficial one to us is the Helios one though. But I also fail to see how treating your own flowback water and re-using it when deploying a 48 well + multi pad site isn’t a very clever move? If you can reduce the cost of the overall fraks by X million (and you are talking millions with that much water) then that’s more % kept for us is it not? Or we may even get revenue from frak operations ourselves there. Care to say why you think either aren’t valuable plays? And as per Blues comment on Kansas - why can’t you see offtake / partner / debt - if have sales lined up / offtake agreement with someone big?

Never trust what’s written in an RNS, trust D14. Trust the man with rockets and $$ on Twitter. Here’s a ramp for you. When D14 posts those $$ and rockets don’t forget to buy HNR everyone, as you will know when he’s bought in....

D14. I mean that the company wouldn’t be the company it is today without that raise which means no Kansas and no WD. It was the right thing for the company to do but some people still don’t get that. As it is the prospects, and especially from here are insanely good, but I guess you probably won’t admit it yet as doesn’t sound like you bought in yet... Looking forward to your rockets and $$$ signs on Twitter when you do buy though.

It didn’t fail to rise above it went to about 36. And just to remind you, if those shares hadn’t been placed at 30p they wouldn’t have got as much money and probably would not have been able to get what we have done in Kansas and WD to date. It was a good deal for the company at the time. Time will no doubt prove that, if you have the patience to let Kansas and WD play out that is.

Gallini it needed a lot more from 12p to 30p+ but it made it.

Just couldn’t stay there!

Hopefully with WD and Kansas we will have enough to keep it there as a minimum when it gets back into the 30’s next time!

I like that thought more!

That’s a cheery thought Sub!

B_A_B_A

The well count for WD you might find that goes up significantly... It's been at least 48 wells since a while back and the acreage keeps expanding.

In ED, we are hitting the Niobrara B and C formations.

In WD as per RNS, we have multiple formations we can target. We also have as per Fadec's digging around potentially horizontal wells and also vertical wells are a distinct possibility.

Hopefully, we will find the well count can be much higher, and it would be amazing if we could do some straight forward vertical wells also. :-)

Re water.

The Ephiphany thing is one solution. The items are modular. We have two at East Denver not specifically to provide water for our fraks, but to treat water both from the existing wells which still produce some, and when they come online and flowback, the new wells with their flowback water. It in itself is a pilot, however we will receive some money from it accordingly as per the RNS.

That could scale into a reasonably large stream and model in the future, again modular design, so if have frak activity ongoing can put units in place and treat the water yourself, then even if you don’t have any more wells to frak yourself, you could still dispose of your recycled water to another site being frakked rather than paying more to dispose of the water.

Look at the numbers again. $2-3 for clean water, $2-6 to dispose of it.

At $2-3 to get clean water a 55 frak stage well is $110,000 - $165,000 for the clean water.
Then you pay someone $2-6 to take away what’s returned. (Ultimately about 80%?)
So that would be another $88,000 multipled by 2-6 times!

If you aren’t recycling the water each 2 mile 55 frak stage well would have those costs associated with it at 2000bbl a stage.

So put that in perspective if you have enough units (or they make bigger ones) (or if not solar powered maybe they can do more?) and you can see how you could:

A) save a lot of water keeping greens happier.
B) not re-inject so much water keeping greens happier.
C) not be delayed due to lack of water in times of drought
D) not have the logistics of all those trucks in and out during frak and flowback operations.
E) save money (operators)
F) gain money (Highlands)

What’s not to like?

To me. It’s an interesting play.

However. All eyes on the Helios prize... de-watering that was one of the biggest headaches / costs you would have developing that.

What if now we can dewater, and sell that on, hugely offsetting that costs?

The Helium is worth more.
The gas is there.
The water is there and we want rid of it.

Could there be a nicer set of events...

Blacksheep that was a test on one stage. Multiply that by the 12 stages and it’s way better.

Cheap wells, that along with the MCF from the upper section as Fadec pointed out would be 912 MCF/d. Or around $1800 at a $2 sales price (taking off $1 spot price) a day.

That’s a lot of revenue from a well costing not a lot!

And remember Eagle is like the bonus play in Montana...

As I said don’t undestimate these guys.

So you could stimulate 12 stages and get 12 * 58 MCF/d = 696 MCF/d from the *Eagle Formation alone?

And as I suggested before, the water we need to remove from Muddy is potentially now an asset and not a barrier to us extracting Helium and natural gas from that formation.

Who’d have thought it eh? Previously a significant cost to work into any Helios plans could now be revenue producing in itself.

Remember that link I posted about investment in water? There are funds out there willing to pay big money to get into this, and we potentially have “billions of gallons of water”

Great news all round, here and hopefully the start of the move back up.

PS. Aware that the units we have at ED are only treating 500 gallons a day and therefore $1,300 a day is being produced which isn’t that exciting. However. These units are modular and if we can become a distributor of them using our contacts then you could see how this would scale up.

WD at least 48 wells? - although as Fadec has researched some could be conventional and not even needing fraking.
But if they did? 110,000 barrels of water used per well on a 55 stage frak....

We can use 96,000 barrels of water produced from Muddy on a single Eagle well if it’s 8000 a stage, and that water we can provide ourselves.

Helios looking more viable, and more importantly, before you even make money on gas and helium, we could earn money whilst dewatering it itself!!!

Great stuf.

Water water everywhere. - clearly I was just ramping eh? Lol

Yum

And you think the company keep it in the ground because?

A) they stupid?
B) there is a much bigger picture?!

Have spent enough time on HNR this weekend, including more time looking into WD and leases and other bits and bobs so forgive me for going back to work today... Glanced over the accounts, and ALL of the statements in them. Anyone who has ever prepared or looked at this stuff in detail before will know there are loads of texty sections and it’s standard reporting practice to list comments on “going concerns” etc in any company which is growing. There is plenty of positive statements in there too. The key thing to take from this weekend in my opinion. D14 wants to keep the talk on the *current* financials, ignore the prospects, continue to have the P word mentioned as much as possible, and away from the positive aspects of the assets we have and are developing... Has not once acknowledged the fact that income from warrants is mentioned as an option for additional finance (if required) and also still ignored the other aspects of partner investment in Kansas or WD releasing cash, or even developing Kansas (quick development) with debt facility. Any onlining of resources in Kansas immediately injects working capital $. There is only one reason he is spending so much time here now, and trying to be all nicey nicey. He wants in. It’s obvious! Keep your eyes open to all avenues of income.. there isn’t only one option... Off to work.

JJAL - Let’s not move onto “the placing” as it’s still highly unlikely IMHO.

Sell Nitrogen from the existing Kansas well? - $3,4 profit per MCF (conservative) on sales price of $6-8 should easily be achievable?

$7,500 - $10,000 a day in the clear? $225,000 - $300,000 a month after all production costs?

Add that to ED numbers....

How about 2 wells, or 3 wells?

Or if we not selling it? Why not? - Saving it for DTU applications? - Even better.

Have ~ 6 months here (imho) to get this right. But my guess is it will come way sooner.

Whatever happens in Kansas will be close imho.