Member Info for HopefulDave

Or if you want to liquify it for transport, we might not if putting it down a pipeline. Blue... My example is purely so people can see it’s not a rampy post in the slightest.... and *even if* those sort of things were required you are still looking at insanely quick pay back on infrastructure costs, unheard of in the standard oil and gas industry to drill wells with that short a payback time..... Just because no doubt I’ll be accused of ramping / being OTT / thinking the sun shines out of the BOD’s backside etc etc.

Blue. See my way more conservative Kansas thoughts, but then scale it up per well. How much acreage will we end up with, how many wells will we end up with? Kansas development certainly won’t take that long. I repeat again: Leased land. -> recompleted well, 3 weeks timeline was that? We bought Nitrogen for ~$9-11 an MCF. Admittedly includes transport costs / time the delivery truck is onsite delivering Nittogen into the well, all that time its not making another delivery etc, but let’s do some simple maths? And these are low numbers... Say we sell for $5 onto a truck (and from there in we don’t care how long it takes to get where, thats it done, we aren’t in the trucking business) and it costs us $1 per MCF **operationally** for ongoing costs to run the well and other associates infrastructure for example, all in. That would be a $4 profit per MCF and the well already there is ~2500MCF. That’s $10,000 a day.... Go super conservative and say we only clear $2 an MCF after operational costs. That’s $5,000 a day. The wells are $250k or less - at $2 profit would = 50 days FIFTY to payback the well drill and complete costs. Add on the proportional capital cost to liquify it - say the kit costs $250k a well? Another 50 days and in profit overall. At $2 profit per MCF that would be a 100 day payback for the capital costs, at $4 a 50 day capital payback? How long does it normally take to payback oil and gas wells? 12-18months? + Kansas has incredible potential and short term potential at that...

I've not so much as made a statement, but simply repeated what they have said, in RNS’s, presentations and in face to face meetings. Good luck pursuing your other opportunities. We are a different company now (options / plays) but there is only so much you can get looking at past performance and look to the future. Simple fact is, we should be able to move forwards with Kansas, quickly and cheaply. The issue with some here is that they seem to think quickly means you can drill a well, then market and commercialise it and pick up more acreage in little under a couple of months. I’m not sure what else people expect the company to state when in negotiations with multiple parties to sell gas, alongside multiple parties (potentially, could be the state) to acquire more acreage. They have announced their plans. More acreage if they can and sell it. Look at how quickly it was recompleted, and how cheaply it was recompleted. With ED and WD you have slow revenue generation plays, but time to get those wells online is longer, but then obviously to sell the produced product is quick. Here it’s the other way around (for now) quick to produce, but longer to sell. Once it is marketed and we have commercial sales agreements then you have a commodity you can sell or potentially a sales pipeline (pun intended) At that point you have the ability to bring wells on line very very quickly, and a product you can move. That’s a party I don’t want to be late to.

Mr DT. I’m not suggesting for one minute the build in itself doesn’t have risks. I’m not suggesting that it will all be plain sailing. We do have some $400m of contingency budget which has been factored into pain / gain contracts so far (and the ones to come after ST2) so risk has been mitigated to some effect there. What I do not like is ridiculous statements suggesting because Crossrail is over budget and delayed, financiers for ST2 or investors in general will be scared off this Project. The only impact it will have on ST2 is that the bankers living at the end of the new line will still have to get up earlier on the day they sign our contracts, that or the Chauffeur driven car will still have busier roads...

Plenty of people publicly stating chasing money elsewhere and selling out at what appears to be a fairly stable base price now. Seems to me to be the perfect time to be picking up more shares not leaving! You know what the flowrate of the well is. If it was a normal gas well you’d be happy with it. The fact is the gas is worth 2-3 times+ that of normal natural gas, but as it’s Nitrogen we will either need a dedicated pipe to market, or deal with it locally (liquify perhaps and truck it out) It seems the average PI doesn’t have a clue as to its value, so use that to your advantage? The team is working hard on this. Both on the commercialisation of it, and the opportunities to get more acreage, news on either could come anytime. Not really sure what “better short term opportunities” there are with us at circa 19p a share and a ~£22m MCAP. If we get more acreage and the wells are circa $150-200k a pop, yet produce that kind of gas flow the returns could be insanely quick. If we don’t pipe this to someone and look to carry out a modular approach with a local liqufication process, then how many wells could we have? That kit isn’t overly cheap, so if you going to increase your acreage to have 8 wells, 16 wells, 24 wells..... knowing how much infrastructure you will want and what commitments you can make for said infrastructure could significantly reduce the cost of what you pay for it... Its not oil or natural gas, just get it out and pipe it or truck it out with ease. It has specific end users, we need to get it from the well to the end user (whoever that may be) that will take a little time to get the best deal, and coupled with potential increase of acreage you don’t rush this. If this was ED and we had just stored the oil locally in trucks and not sold it cause we were faffing about looking for the best deal you’d rightly be going mad, and so would I. But it’s not. It’s nitrogen, specialist product, specialist market, specialist price and revenue accordingly. I’m sure the rise on the back of commercialisation will be pretty special as well, staying put for my rainbow here! Incidentally Argon from underground sources can have specialist value to... https://www.snolab.ca/news/2017-09-21-formation-global-argon-dark-matter-collaboration

Because someone else has a project run means we will have a project overrun? We are; A) sinking shafts straight down. B) creating a tunnel to transport goods not people, underneath mostly fields, not drilling a tunnel within a few metres gap of existing tunnels, and not excavating huge parts of the hugely populated and capital city to build vast new underground stations. Yes we are a big project, but drawing comparisons to Crossrail are not relevant in the slightest. Their delay will have 0 impact on our ability to raise finance. The only thing impacting our ability to draw finance is still currently us, and whichever potential customer(s) are up for the last TorP (or whatever other deal we may turn up) to get us over the line. Banks still desperate to lend money to viable businesses, and as soon as they see us as a viable business worth lending up to $2.9bn to, so will more investors / funds / ii’s (those seeking capital appreciation initially, and later those who want dividends) Just my two cents but just that project overrunning on time and or budget or both, alongside Spurs new stadium (chuckle) will have no baring on our project or its ability to raise finance.

I’m sure will be plenty of news coming this month and next and probably into November also. Pipeline and ED wells complete then IP’s WD acreage finalised - permitting and then finance progress after. Helios Eagle water hydration results. Kansas updates? I would imagine we would hear something before too long - but I’m very much on the no news is good news with Kansas. The play that’s there is valuable and we know that, longer we don’t hear anything more likely something bigger is coming out of it is my two cents.

Would have thought if safety / temporary thing for fraks would be “taken offline or disabled or temp shutdown” - dismantled sounds a bit more permanent!

Sub, Nice links. Comment “Gas plant is being dismantled” Pipeline completion must be imminent?

Blue I’m sure they have given as much as they can, believe me I have asked a tonne of questions about it myself but they haven’t answered every one as 99% of what I want to know is commercially sensitive / would potentially hinder negotiations. Like my other play. Tonnes of progress every day project milestones being met, twitter feeds etc etc some multiple ones a day, but it moves little as everyone awaits one or two pieces of key news. We do need more publicity and get out there more I agree, but I’d rather the guys concentrate “on the pitch” as it were and “let the results do the talking” etc etc. They would love the SP higher too, when they can release information that will help that and not hinder them they will. We operate more like a main listed company than an aim piece of poo, we don’t RNS for the sake of it trying to drum up interest. One day we will all be very grateful for that...if still holding!

Blue. Re-completing that well was super cheap yes. How much to scale it up, what are scaling it up to? I’m not for a minute disagreeing that the Nitrogen play has the ability to bring in revenue, far from it. I think it will pay-back very well indeed. I’m just saying that I think people need to be realistic in expectations about just because there is a well there producing something it’s instantly viable to sell that gas in the most cost effective (and therefore profitable) manner. If they spent $250-400k on a load of liquification equipment now (example) hooked it up and then in say 3 months we broke even great, in those 3 months we could potentially have recompleted two more wells for that money, and entered into a commercial agreement to pipe the gas from 3 wells... Maybe within a month or two later maximum, we are selling 3 wells worth of gas... Maybe the acreage we could be looking to secure is so significant that we could be looking at bringing in a partner here also, as with a partner we could get say 50% (example) of a monster acreage worth 10 times what we could ever achieve by ourselves... I totally agree that getting extra revenue streams is important, but the potential options are staggering. We picked up 46,000 acres of CO2 land. A further 140,000 acres of Helios land. Some 3,500 acres in WD and rising. If we were to double up the acreage we have now, and then go 50% with a partner, with them putting up the capital to drill and pipeline etc, we have the same returns with 0 capital costs.... now double that acreage again, or perhaps get 10,20,30,40 more parcels....is that beyond the realms of possibility? Developing it ourselves could be an option. Maybe we keep plot 1 as our DTU sole owned plot and manage to get a load more acreage and partner up on that. See the possibilities that could unfold....?

Blue. For Kansas some considerations....we know they are looking at more acreage, as said so verbally and in the presentation released with the RNS. So think about that for a moment and some potential implications.... 1) Additional acreage. 2) commercial agreements as in which end users - how much $ paid by each end user. 3) how to sell it to who, each would come with a different option... 3a) pipeline it - committed to that one customer really and then don’t really get your own useage. 3b) liquify it on-site yourself? Modular approach perhaps with equipment per well depending how far apart they are / combine liquificaton equipment on a pair of wells, 3 wells etc... 3c) economies of scale. - yes could have commercialised the one well and sold it to someone as liquified gas now, but how much does that cost to setup for 1 well and how much if do 2 wells, 3... 8 etc. 3d) acreage. If you expand the acreage is it adjacent, is it multiple individual parcels? - have to think about access - either piping joined together, going over multiple peoples property/rights etc, or road / transport/ access / surface agreements to liquify and store that on site etc. Whilst some things move insanely quickly, as insanely quick as the nitrogen comes out of the ground with Barret and as quick as we re-completed this well from initial lease, putting all the above together and getting the best and correct result isn’t going to be a “back of a fag packet design.” Whilst you might be sitting on deal of the decade with one setup, if you manage to secure parcel x or y alongside it, all of a sudden you could have done deal of the century. Hindsight... the same thing that drives half the posters mad here when they think they could have traded a 5% swing and made a few shares, maximise that out for Robert and co. Sitting there with multiple options like a giant jigsaw puzzle and putting together the best deal and trying not to go DOH! and slapping his head five minutes after signing it as some one runs in and puts option b or c onto the table... We don’t know how much more acreage they are looking at, and what implications they have. Finding it, and getting it out of the ground are fantastic achievements and require clever minds. Working out the best way to move it above ground are equally as complex, just in the contracts, legal, land management and logistics side of things, as opposed to planet brains science and engineering stuff. Patience and trust required here for maximum rewards in my opinion, just have to trust them to get it right and let it play out.

My only caveat on the nitrogen frak would be if the existing muddy well could be used and is in the correct state, and if the biggest cost would have been the nitrogen, so if we were producing it in a liquified truckable state for sales, then potentially it might “only” cost a few hundred thousand to carry that out and could be worthwhile. Not sure how the nitrogen / de-watering state co-exist or if the nitrogen is used instead of de-watering or alongside “partial de watering” for Helios? I guess if you drilled a muddy well, partially de-watered it by using the water for ( n ) eagle wells, and then used nitrogen in muddy (our own) that’s not a bad combination? Need to research more on the nitrogen Helios process (I do) Bedtime reading for tonight.

I don’t think we’ll need to use our own nitrogen for ED / WD operations for some time (refrak perhaps) I don’t think we’ll be planning drills close to each other enough for PWP in WD either (initially I’m sure) Helios will certainly at some point have a Nitrogen frak carried out, but my guess is that it will be when we have WD revenue inbound so a 2019 thing more than likely, just my two cents worth. Beyond this current plug removal and once ED revenue is inbound I can see us planning the next steps which could include a de-watering muddy/a few more eagle wells elsewhere in the acreage perhaps, if we are going to leave Eagle wells soaking for ~6-8 months then sooner started sooner results... As per Noodle I’d expect us to either: Enter into commercial agreements to sell some of the nitrogen. And my own two cents, potentially use some of the nitrogen for any DTU frak operations elsewhere, but think that may sit on hold whilst the nitrogen commercials are being done, but never know. I agree at present we probablly won’t commit (as in next few months) to a nitrogen frak at Helios, not unless it demonstrates a DTU application also that someone else wants to use and pay for! With regards to the end of the year comments. I’d hope we are well up by then. End of year 2018 thoughts..... welcome any feedback... Eagle well results after water hydration. Gas pipeline completed. ED 8 wells online and producing extra revenue as a result. WD leasing operation finished. WD permitting process started (possibly even already be permitted for initial batch of x wells / 1st pad we already have surface use rights for?) I’d expect all of the above, possibly not the permitting finalised, depends when they finish leasing, but they already know where they want the 1st drills so permit raising will be quick once land is finalised and shouldn’t need to wait for hearings. Add to that any bonus Kansas acreage expansion or Nitrogen commercial supply deals for a nice bonus effect?

JJAL - I haven’t “blamed anyone for leaving.”

If people want or need to sell that’s up to them. If they need or want to buy it’s up to them.

If you “invest” in a growth company you let it grow.

Yes the idea is to make money!

If you believe you can make it quicker elsewhere good luck, best wishes, toodleoo etc.

I’ve seen many a golden goose go pear shaped, so I’ll stay put.

People dived out of Sxx to go into all manner of shares for so called “quicker wins”

Some made money, some made lots, some are gutted as they lost bundles, and ironically some of them were in the same shares.

I’m invested here. Just like when some pin striped wearing penguin suited champagne swilling gentlemen managed my unit trusts and shares in funds which basically did the same as all the rest, went up if indexes did go up or went down if the indexes went down, and all that for 2% of my money every year.... no thanks. I have my “units” / shares and they can (hopefully appreciate greatly over time) but should start to move with the projects we have.

2% swings either way, 10% swings either way. Meh. Like unit trusts / funds you build units over time and hopefully over time they go up.

Highlands is a growth company, and could grow 1000’s of % and you all know that. You also know it may go up 20% it may go down 20% in a matter of days, it may just be a share on the market and do what they do up and down a few % for a while and go with the flow until news drops.

I’m not trying to make this out to be an instant wake up tomorrow morning and you’ve 5 bagged share. I’m sure there are better opportunities to make (or lose) money out there in the short term as we are trading in a relatively small range at present.

I’m not fretting about it, or worried about it. ED aside, (lessons learned) progress is being made (and progress for some revenue is still going on there), is it reflected in the SP? No. Do I care? not really, as I don’t intend to sell them anytime soon. I’ll sell some when the projects values are truly reflected in the SP.

I get people’s frustration in the SP. If you are concerned about timelines, or Kansas, or WD, or any other project then re-evaluate your situation / position and act accordingly. If that means for you, sell, and if that’s what some have done that said they have done it (sold) then that’s fair enough for them. Wish them nothing but luck where they move onto, (especially if they buy my other lol) unless they come back here de-ramping as try to get a better price to buy back!!

Hindsight is great. But in a FB group I’m in so far people have lost half their money or more moving into at least 3 well ramped and “looking great shares”

Some made loads- some lost loads.
Ukog/ggp/frr/BPC (super ouch) just a few.

Chase the RNSs and trade if have stomach for it, not for me. It is for some people and good luck if that’s one of you!

Long and strong is my game.

Chesh. - do love your sign offs!

Flat trading - give or take ~1% either way. MEH with a capital er MEH!

Could get updates on Kansas / Helios anytime soon. ED chugging along nicely, WD - Estimated leasing could go on for 1-2 months (now 1 week gone on that too) but could finalise it earlier who knows?

Would be nice for a few catch out RNS’s long before people expect them.

I’d like to think we could start to get some activity, which drives us forwards, and then catches a few out with more news dropping just as everyone expects it to quiet down again!

Rest assured it’s all going on behind the scenes...

No. As per of the AGM questioning.

Robert expanded on the ED Fraks as at stage 22 if I recall was definitely 20 something.

When quizzed on Helios, and timescales as was asked “said like soon but...” Robert said we just missed the drill we wanted and it’s now on another job, but “aim to catch it on the way back down” Then when asked how long said “few weeks I recall.

Pretty clear that as the cost is so cheap and it’s one stage so should be a quick job also when it does mobilise...

So my quote “” is from the AGM questioning.

The text above it is from Highlands Web site.

Highlands is employing innovative drilling and completion techniques with the intent to unlock commercial gas production. The strong natural gas production rates were delivered by opening up just two of the frack stages. At the time, the third stage of the frack, or Stage #1, was closed so that the Company could observe the productivity impacts of long-term clay hydration. The Eagle formation has been soaking for more than seven months. Highlands is now prepared to drill out the bridge plug and begin flow and testing of the well Having deployed a fresh water clay hydration completion aimed to create swelling-related cracks and permeability over a multi-month process, the Company hopes to have strengthened production even further. If this test is successful, this will go some way to validating the project and although it will not provide a definitive understanding of the commercial viability of the project immediately, given the size of the project, it will help Highlands determine the next steps and this project’s future. Total costs for completing stage 1 are estimated to be less than US$100,000 but the potential upside to Highlands in the event of success could be significant. Like the fact they are reminding everyone what little it’s costing on the these other plays currently. Just ~$100,000 to open up stage 1 and see the flow rates. Can’t be long now... “within a few weeks, we missed the drill on the way up but will catch it on the way back” - already 1 week gone since that stated....

He doesn’t have time to describe the entire company contractual set up. The statement is about the fact that Highlands finds these lands and has managed to drill (as we did as operator) the top 3% wells. Anyone going on to read his blogs would get that and the carried working interest etc. We were still responsible for these wells in the context of “we are a small operator who started off and got these wells of the ground and are looking to do it again in WD” When was the last time you watched the news and got the full story on anything?!

He is quoting the expected oil from the 6 new wells + Wildhorse and Powell. As per Roberts statement if these are the same as original two wells we’d be producing 5,000 a day from these wells. He did correct the blogs etc he had previously, to state expect to produce, but seems to have slipped back to “producing” again.