Member Info for HopefulDave

Johnny not aim and we have income so er 0 out of 10. The amount of derampers coming on here is awesome. Obviously either everybody wants a piece or we have multiple knights in shining armour to protect us from our aim investments. Oh yeah we not on aim...

2 days in to drilling Grizzly

You all quote 20 because back then in the report it said it needed to be 20. Perhaps 20 for full scale production to then crack on with. My whole point earlier is with each success more people will be happy to have this done. Why wait and pay 100% + 100% when you can pay 50-60-70-80-90-100% and get all the benefits?! How many of those 20 tests will be at 50% how many of them will be at 60-70-80-90-100%. IMHO. Most the later ones will be 100% if not already making a small percentage just not the full 100 + 100. Every time this is a success it makes it more attactive to “test” and as such people will be happy to have it carried out on their wells.... If you were an operator and say 15 tests had been done before successfully would you not chose to have this done? If you already have refrakked and screwed your wells - surely you wouldn’t want to re frak more again causing more damage on others you’d think about trying this out? Yes it’s new yes it has “risk” but as more are done successfully it’s higly likely we will have people willing to have this done for cost considering their next wells would be cost + more. Also. If you had a bunch of wells and were in line at number 15-20 surely you’d then be all over it saying. Do me. And if it’s good you can do 5-10 more of my wells at a cost + 25-50% or something. Everything doesn’t have to be black and white and you go from 50% to 100 + 100 overnight. It will more than likely move up the scale costing us less and less with each test and with each test more eyes open more people come forward with requests to look at their estate. Surely that makes sense?

Urm no we could drill another or get some other land to produce it on. It’s cost is less than one months new ED revenue when the wells are up. Hardly game over for DTU if not successful on one well. Comments like that just show your stance and show you up as a complete clown!!!!!

Perhaps the reason we didn’t put 50% cost out there before was because we didn’t want the next test subject to know they could get it for that..... Perhaps we were out there peddling the next one higher than that. Perhaps we have signed up on another one or a batch of them now on a higher % or perhaps we have already tested one at a higher % so the person is happy with results and not peed off they paid 60-65 or more % Just a thought.... But makes sense. Why put it out there at the beginning and let everyone else know the 50% payment for now... yes we would like to have seen it’s not a 100% cost to us. But you don’t hang your commercial details out in public unless you need to / want to etc.....

Yes it must be a frightening thought. Do I pay out an extra few hundred thousand now and. Gain 15% production. Protect my reserves. Don’t get sued for a few hundred thousand by next door not to mention peeing them off as I reduce their production flow rates. Or just wait. Frak normally. Realise I’ve just lost several million dollars of reserves got 15% less oil than the guy up the road that did use it. Oh here’s the mail man. Oh a letter from a solicitor..... Times change. More Infilled wells. Legal cases etc. I’m not suggesting this is going commercial tomorrow and we have a RNS starting ching ching. Just getting it out there at next to no cost to us will be a major milestone and from there it will take care of itself. 50/50 on the Permian test is therefore a good result IMHO.

Diamond it was a TEST and as worm tongued by many before suggested that we would not get a cent accordingly and pay full costs. Along with “how long will the money last” etc etc. I imagine in that basin now we could prove up another well or wells at a much lower cost to ourselves I.e. get them to pay 60% then maybe 70-75% before you know it tests are 0 cost to ourselves and the benefits become clearer and adoption will speed up. The fact we don’t have to pay the full cost at that early stage to me shows promise not something to be shot down. Market penetration costs. Early adopters often get for free to “play with” then pay a reduced cost, then cost, then you make a small profit, and then when everyone wants it it goes up to full price.That is normal business practice and in a slow uptake environment it’s how I’d expect this to go.

So for the first test in the Permian Basin we didn’t pay full cost of the DTU application. What did I say about this a while back whilst being shot down. The benefits of this are clear, and although still not adopted, someone willing to have the “test” done on their well met half the cost of the entire process. If we need to test and prove up more I would imagine that % will increase with each one being more successful to the extent we break even on “tests” and then even turn a profit. Tipping point. We aren’t paying the total cost of tests even now at this stage, and we said we would source nitrogen. We have actively gone and moved forwards with that. I’m sure the “lazy useless BOD brigade” will find something else to pick out of it and deramp like the cost is high so we want to reduce that, but if you try and work that in remember the revenue / profit will increase accordingly with the nitrogen sourced. Just want to hear about results of another test where we received a greater margin than 50% of the cost now and the “extensive cash drain of testing DTU” myth can be put to bed. Onwards....

Don�t underestimate the value of exclusive rights to a provider in a basin. If everyone wants PWP to prevent bashing and only Calfrac licenses to use it in a basin, then who are you going to ask to do your refrak? Calfrac or someone who can�t offer this 15% uplift and protect against bashing?

Not in the slightest. Just there to shoot down someone who makes a stupid comment that makes no sense when he has blatantly already called themselves out as a shorter. Suggesting people only want to invest in companies with high risk / high reward when that is what Helios is marketed as (in comparison to our other plays) basically was a stupid statement, and given their openly short stance a point worth calling out. It’s not “moderation” in the slightest it’s applying a balanced and logical argument against a stupid and unwarranted statement. My post was when the SP had “dropped” 2% on zero volume on a day the markets are down 1.4% Hardly therefore anything to panic about and I’m not going to panic if it drops any lower either. At £21-22m MCAP with DTU / Helios and a risk free ED play that will bring in a further $500-600k a month in a few months time it actually makes the investment case even stronger if it does drop any further!

That is ridiculous is commenting endlessly on the SP bouncing around between 19-19.2-3p and screaming panic when it’s done sod all on no volume! Wait. Simples. Don’t want to wait. Go away, but don’t sell because jacky the oxygen thief has shorted it!

That’s good to know about the warrants. Thought we would have had a Buckskin completed drill RNS, although the team did say they more likely to speed up slightly as they go along and more used to working with each other. Hey ho. New week.

Oops. 5% of the drills cost. But 10% more investment by us... Anyway. I guess you know what I’m getting out. Tired and time for bed. Do understand the thought process. Would put us on the radar as any company paying dividends would, but I wouldn’t want us to miss out on a promising parcel of land or something else as we could have spent that $500-600k on something.

Should be Buckskin completed drilling over the weekend I would have thought. As for Dividend. No thanks not yet. On completion of the 8th well and getting that $500-600k in maybe. However that is another chunk of change that could be put to good use. Another well and a bit in Helios project, a DTU re-frack that could then pay out 100% ROI? Not for me not yet. We don’t know what ED II is yet, we don’t know how much we need to put into it. If for example drilling 2 wells were to cost $10m and we went 50/50 with partners money that would be $5m. That extra 500,000 represents 10% of the drills cost.... Still want to pay that $500k out as a dividend or maybe fund 60% of the wells instead of 50%? More we keep WI at the front of the next project the more we can keep at the back end and free carry it. Keep the cash highlands, spend (invest) it wisely.

Think you’ll find that’s up. Add a few more at 19.35 to the bought list.......

30000 sold at 19.2 20000 sold at 19 15025 bought at 19.3 It’s hardly a collapse is it!!!!

Not sure on individuals. I.e. cully. I believe the other staff costs would be operational staff, given a transition of “operator” status to True, that’s where a lot of overheads will reduce. As per finance, the initial hunt for partners then the current deals obviously involved a lot of initial juggling , modelling, meeting with funds etc. Now we have that model established, we have existing partners that can be re-used, and we have a template to move forwards, it’s clear to see where you potentially wouldn’t need an extra person in that position doing “that finance stuff.” I really liked Cully as a speaker and as a person (in my two brief meetings) he came across as a really nice guy, and if he’s gone it’s a shame for those reasons, however with a business hat on... As stated. It’s not difficult now to re-engage existing partners , or work with any new ones, now the framework is in place. It does not for a second mean all new ED plays would be 7.5% Depending what we put in, royalties, what percentage of land costs are paid by whom etc. All of those % points can be moved and scaled either way, but ultimately come out at the back end with partners paying most the capital and us getting another % free carry. My personal hope is we can in future come out with a better % but that all depends how much of our own capital we actually invest, and the dynamics of who else is partnering and what % initial WI we get etc. This current play, we were more “desperate” to do a deal. However this next time around, we’ll already have the existing income stream. We may find we can do more ourselves keeping a much higher initial WI. Maybe we just drill one well. Or maybe the land will have multiple sections and we partner in a similar fashion and get the same back end % but inject much less of our own capital up front. If the section(s) of land are bigger maybe keep a few sections for ourselves to develop later... I guess all will be revealed when we get the next land deal(s)

....That said. If we keep repeating ED or somehow acquire enough acreage / a bigger slice of land to play with, ED II or ED III could be “company making” plays in themselves. 7.5% might seem a little number now, but roll that out over multiple wells, and potentially increase it with more plays, and more available initial capital, or a model which proves itself over and over then you have the ability to negotiate bigger slices at every point

I don’t think it took much more than an abacus to work out if we kept it old ED it was better long term, *if* ED was our only play, but it’s not. The key factors are time, the phase we are in now is that phase other companies people get excited in, and then along comes Mr Dilution, well we are passed that point. Whilst overall we clearly get less revenue than before, as you say, we get it quicker and crucially, it covers more than our operational ongoing company overheads, it will add capital to assist the other projects and support us during ED II as well. Fundamentally that’s the main thing. Where others need funding for keeping the lights on, and to drill, we do not. The end game is DTU and Helios, ED is a cow to milk ongoing to keep cash coming in, as will ED II etc...

Regarding SP action and general observations elsewhere.... I posted up on a Facebook Group about HNR and it practically was ignored, everyone was banging on about FRR instead, that seemed to be the groups o&g darling of choice.... They would have been much better off with HNR... We might not be as popular as some of the others, but we aren't doing as badly! April 10th 22.38p HNR Now 19p April 10th .62p FRR Now .42p We peaked at what 36-7p prior to the 30p placing? -> we are not even half that. UKOG hit 8-7-6-5p now look at them. 88e went down to what .112 at XMAS - now look at them? Back in favour and up at .234 and they have delievered.....? Fundamentally, we need no placings, we have money in the bank, have potential *risky yes* crazy upside potential in Helios, less risky crazy upside potential in DTU, and have a proven delivery *cough others cough* with the wells we HAVE produced from. The O&G plays out there don't necessarily make any sense. Our SP is crazy, but fundamentally we are in a good place. That will ultimately always play out... No matter what the SP rollercoaster does in the meantime. We do not need external finance, so the SP dropping is not a major concern as we aren't going to place and dilute there.... When we rise again, it will be with the same number of shares in play, not crazily diluted. That is a very important point to remember...