Member Info for HopefulDave

Ukog and FRR down 7% today, at least we only wiping out some of the recent gains! Must admit I’m getting severely tempted to add more.

Not sold a bean. - Mr Hindsight telling me I should have. Me telling Mr Hindsight I’m not a day trader, F off and come back when West Denver is producing... Joy, would you rather only having one possibility and if things didn’t work out being stuck with a plan that doesn’t work or options? “Vague dalliance of possibilities” - excellent terminology, but wrong context. The pressure in insane in Kansas it’s an anomaly. We have a well. We can drill more wells. We have options. Do we need to rush to a decision or go down a road we may regret later? No we don’t. If we were desperate for cash - we could sell the nitrogen now with a number of options. Pipeline - would cost some money and then pretty much commit the well to being sold down the pipeline. Liquid gas - we could put a refrigerator unit in place but they are expensive and again commiting it then pretty much to that process. They got the land - they drilled it in a matter of weeks, it’s only a matter of weeks since they got the max flow rate. Do you expect commercial discussions to be complete in two weeks? Then the best option to be understood? Maybe they want to be safe with regards to the extra drilling there / decisions on what to do next given the high risk of blow outs due to the pressure there. What we know: it’s there. It’s high pressure. What we don’t know: best option to sell / use it yet. What we also know. We aren’t desperate for cash or we would make hasty decisions to sell it somehow and get revenue in immediately.... So is that vague possibilities, or is that potential business options that commit down one road / avenue or another, but all lead to additional profit?

The UT’s were effectively the buyer who’s been on for a few days who initially wanted their 465,000 shares and ultimately got them. The last 253,577 at 22.4p and the rest were all at 22.5. So they have their £105,000 buy. Wonder if will come back for any more?! If not good luck to them (and obviously us!)

They were on to buy at 22.5 still. Whoever matched just lost 253,577 * .1p #fat fingered fool. That’s £248 lol

No it was a buy order at 21.5 not matched. Then 22.5 all the way along nibbled until it was. Whoever went to match it in last auction must have Mis-keyed order or just stupid as went in at 22.4 so the buyer got last tranche at 22.4!

And with that it’s done! Chomp.

Oh look. A 253,577 buy order appeared.....

That's Mr buyers L2 order being met.

Every auction for a while the amount appeared and then came back every time at auction. There have now been 3 UT's and if you add them up the amount on the DMA buy order has reduced by those matched. i.e. that buy order is being met, slowly but surely.

Initially wanted them at 21.5 but it wasn't getting matched so upped the order to 22.5. Slowly, its now being matched.

Expect in the next auction 359,570 - 105,993 - so expect it to return as a buy order for 253,577 at 22.5...

What would be nice is when it is finally completed would be to see another L2 buy order appear, then you'll know someone is loading up (not that the original order of 465,000 would be a small holding!)

People like to see "large buys" -> Well those with L2 can see it. It is a nice chunk and if you think 465,000 initially at 21.5 would be circa £100,000 buy.... Being filled at 22.5 it's effectively a £104,625 buy....

I don't think need to wait 2 years for rewards here.

I'm assuming work is going on with regards to permitting and spacing the land they are accumulating in WD behind the scenes.

With the big chunk it will be easier to plan what they want to do, and without Renegade, hopefully, when our hand is shown, we put those spacing and permits in we will see a decent rise on that.

I used the analogy of developing houses to Robert the other night and he liked it and said it was a good one.

Think of buying land, getting your architect to do some drawings, submitting them to get planning permission, and then throwing the whole thing over to a builder to build the houses. You get to keep x % of the houses for yourself.

Great business model.

West Denver is no different.

Get land. - tick (and ongoing)
Get your drawings done (- i.e. map out where you want your spacing units, pads, and drills to go)
Submit your drawings for approval.
Get drawings approved. -> "planning approved"
Get someone (can all guess who probably) to come along and do some drilling.
Keep x% of the wells....

The other interesting thing here is the "reversion" effect.

Conoco had it with us in ED (although that's now a new deal)

We may shoot for (just guessing at numbers here) 10% for example as initial WI in WD. Partners then get 90% of each wells output, until their costs are met (and let's face it if they are paying ALL drilling and completion costs that's fine with me!), and then reversion takes place. We could then ( again example ) go to a 35% WI in the well, gaining an additional 25% of output.

With the number of wells touted (at least 48....) on OUR land - not shared and no disputes to be had.

That's a pretty cool model to have. I would expect to see big value upside on the company once deals like that are made, and people can effectively see forward-looking big revenue from very little capital investment (i.e. we don't pay for the drilling and completion etc)

Patience required, but certainly not 2 years to see that individual projects upside revealed.

You too. Interesting to see other holders there also, especially those from the investment community background themselves. Not that need it but provides further confidence in my investment!

Eringael: with regards to confidence / doom and gloom etc, it’s the same on every share board.

Human nature, without realising it Mr Hindsight sits playing the devil on ones shoulder whispering “should have sold some on that rise, could have bought some back lower” then people say (with hindsight) that was obvious I sold and made x%. Then you get gloating shorters or those who wanted to buy more lower etc.

It’s the same on every share board here, those who want it to go up and genuine holders for the projects developments will be less bothered, but some more annoyed, lose patients, another “false dawn etc” it’s natural reaction.

I see it a lot on my other share board, and quite frankly the heavier traded ones seem like people flip intraday from bulls to bears to suciidal tendencies to euphoria all in a day!

Have got somewhat immune to it myself, my few years on the other share have seen huge differences, excessive trading due to convertible bonds (read warrants here) but those positions there (reducing) and certainly here are now unwound so it’s just, hold, let the company do their thing, the SP will rise up eventually.

Obviously I’m happy when it’s up and annoyed when it drops like any other, but my long term outlook doesn’t change and I’m not going to flip-flop from one camp to the other.

Is the term higher highs and lower lows what we are looking for now? Will still no doubt have ups then consolidate the. ups again with luck, as long as the long term trend is up, then it’s all good.

Another day closer to starting drilling in WD, maybe we trickle added more land also. Look forward to another change in terminology from up to 48 wells, to at least 48 wells. Wonder if/ when that will go to at least xx wells..

Mr L2 buyer still there at 22.5p. Wants 359,570 now having matched those UT’s before.....

Nope announced back on the 12th so probably requested on the 11th. We’ve been tracing freely pretty much ever since. http://www.lse.co.uk/regulatory-news-article.asp?ArticleCode=0uephy03&ArticleHeadline=Issue_of_Shares

Finally a UT of 100,000 shares. Looks like the L2 buyer of the 450,000 odd shares got the first chunk Just the 350,000 odd more for them to buy now!

JJAL I’m trying to explain as people keep trying to twist the reality of the situation and spin anything they can in a negative light! Ps. Royalties come first, always, any WI is after royalties..

How can you read it as anything other than the sentence that is stated? If it was as you stated it would have to have been declared in the initial announcement.... Up to 24 wells and we only get 7.5% of 1500? Forgive me for asking but should we be calling somebody to come and pick you up? The sentence as a whole witrhout trying to manipulate it says it all. “*IF* we get the same IP as before then we will have 7.5% in up to 1500 bopd” It states if they are the same as before we wil get the same bopd as initial pair of wells. (BOPD not BOEPD) so add that along with the expected BOPD from the first two wells and ta-da you get to the ~5000 figure. How you can even try and manipulate that into a maximum cap is quite frankly fruit loopy. Please feel free to expand on the sentance and explain why you think that is our contracted amount, referenced to the whole sentance and previous RNS’s on the deal in question?

So no hash up. New 6 wells + existing 2 wells....

There will be the initial production from the 2 wells + these 6 new wells. Don’t forget that these will also sell gas as well so it’s not just bopd but that extremely valuable ~1400 btu lovely gas will be sold also....

More shares in the ISA before dividends works

I don’t think we get a dividend for 2019 Joy. 2020 is possible but it’s a fairly standard accounting practice and not for the reasons D14 makes out.

My idea is simple. It is as the company states it is. 1.) the most common reasons for doing this are: To increase or create distributable reserves to enable dividends to be paid to shareholders. To return surplus capital to shareholders. To facilitate a share buy back or redemption of shares, or As part of a scheme of arrangement relating to an intraday-group reorganisation. Furthermore and CRITCALLY Procedure: Before a company has obtained shareholder approval its directors MUST MAKE A SOLVENCY STATEMENT. Then there is the COURT PROCEDURE. The court will allow it as long as (and get this) The companies shareholders have been fairly treated and have been given adequate reasons for and implications of the reduction. The court will see evidence to this effect. So basically. The directors have to say we are solvent (they say we have have cash) they have to prove that have told us as the shareholders why they are doing it. (They have done that) If D14 is now suggesting the company would make those statements, apply to a court that we are solvent and that they have explained to us why they are doing it, and then go and do a placing? He really has got to the bottom of the barrel this time. We have $250,000 of Nitrogen flowing a month for starters. Do you think: A) we would like maybe sell that? Or B) wait 4 months then dilute the companies shares?

Ah you meant 3 quarters not 3 or 4 then