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The off take can work in multiple ways. My feeling is PG would prefer to avoid debt - particularly if looking to sell part of the fields reserves and prove remainder.

Hence, the GPA/GSA price would adjust price per mcf to reflect the NPV cost of CapEx required. They'd need to be pretty confident gas is there but it seems that may already have been the subject of much discussion and the proof if in the process of being acquired (if indeed its available).

This may then release funds to drill and text other targets including Jurassic.

Get the impression PG would just like a big bang sale. What does it take to achieve that is the question and don't think pressure testing MOU-1 and MOU-3 is quite sufficient without some sort of Jurassic drill.

May also depend how he defines Big Bang

Interesting to hear chatter about pressure build and time required being 2x 2 weeks taking us to mid November. Not far off as it goes and should have more knowledge sometime next month one would imagine.

Shakeyerbooty

Thanks was referring generally to exec pay packets but should have mentioned junior explorers not AIM. Cheers

He (PG) is a founder and barring loans to company don't think has sold (m)any shares over the piece so his fortunes are aligned. AIM CEOs are overpaid in cash terms but doesn't strike me as a lifestyle kind of fellow.

Get the impression he wants the CNG flow proven to negotiate funds for this to allow quick drill and appraisal of Jurassic thus allowing a swift sale there also.

Seems not keen on stub equity - if flow rates are what is expected or better, expect CNG deal done this side of Xmas based on advanced negs already.

Drilling Dec/Jan (unless weather an issue) for Jurassic then the fates are again dictated by volume flow but dare say there may be parties interested. They may already have a virtual data room and be discussing options.

Interesting times.

Hi Mav

16-32° API from a quick Google., so a mix but they were know for it bejng heavy. Heavy oil is still needed and Venezela and Russia (Urals) haven't had a problem selling it.

For Orinduik - take the Aoka Miza (HUR) 600k barrel FPSO - can it be one third filled with lighter sweeter crude from a carrier then the heavy sour stuff pumped in? 400k barrel cargo is still very valuable and you get the funds back paid for the 200k light sweet in the market.

The working life of the lines from seabed and pumping pipes is shorter but by how much? From the Hurricane days I recall this was only a small part of the CapEx raise. Alas, the website is no longer up so I can't check.

Perhaps not attractive to a major but for Eco very accretive and for a cash player they could possibly extract an excellent return they wouldn't get on other fields.

Smaller FPSO and crude carrier could do same and fields could produce for several years.

If 400m barrels doen there then it is $25bn plus gross at $61 oil

Venezuela has enormous oil resources of its own but due to their totally corrupt and inept government are unable to exploit them.

It's not the oil they are jealous of, its the international companies coming to Guyana to explore and produce and the fact Guyana isn't sanctioned.

There are clearly hundreds of millions of barrels under there but Total et al cam afford to wait Eco out. The other question is cretaceous light and sweet - Gil says it is but who knows. Does it need to be from a different 'kitchen' to Joe/Jethro to be light sweet instead of heavy and sour.

The oil could be easily mixed and there are solutions to do this on FPSO - it would burn through Xmas trees and pipes quicker than a normal solution and thus higher CapEx/OpEx but from Hess deal it is clear longer term confidence in Guyana production costs is there.

Hess transformed by their fortunes in Guyana and has seen share price treble despite being worth 11 figures before the first drill.

Amazing what a big find can do

JohnHenry

I'd imagine many are now positioned how they want to be for testing results come good or bad.

Normally, there would be more of a run up with late entrants but without a definitive timeline there is perhaps less hot money coming in for a quick flip - that maybe is no bad thing.

On news imagine lots who are in have levels to top slice and de-risk on good news.

If Upland can do what it did this morning, then good news here on CNG being feasible and a sale at wellhead for more drilling to prove up other resource then there is potential for even bigger re-rate here.

All depends on the geology.

Interested in any developments being seem from the satellite imagery.

Depending how results go, PG and OHNYM don't need to speak. Their preference may be to negotiate quietly- if the tests are positive they don't need to be trumpeted at an arbitrary date because a conference is on. It is handy though (and good cover) that senior executives from O&G can be in town and potentially have discussions if results warrant them.

Hi Tom,

If taking the unit from SDX, they completed drilling around 27/9 and required a few days rigless testing. So should have relinquished around or before 10th October. With time required to ready site that would indicate a start last weekend(ish) and others have suggested around two weeks (for pressure to build and flow to be tested).

However, others have suggested activity not visible from satellite imagery so it may not yet have begun.

Picked peck

I think SH would prefer A1 to have gone live Anslow produce regardless of A2 if it avoided this kind of value destruction.

The company has a responsibility to SH and value protection/creation.

The destruction of value here in a major project is highly concerning

Maverick

The clue is in the up to 10.5m in cash for the farm out. The actual payment will idnimagine have specific milestones attached and as such not yet have crystallised as actual cash at hand.

Haven't gone back to look at the conditions/RNS but would imagine it is down to this rather than burning 10 million bucks in a month.

Have seen a couple of different potential rates posited here, ultimately the geology decides.

My curiosity though was more around the charge so if getting 25mmcfd at MOU-3 how would the pressure be having another well head in close(ish) proximity.

Think 250mmcfd was also mentioned and just wondering as don't have CNG case committed to memory if this listed any forecast.

We will know definitively soon.

Some of the posters around RNS make me laugh - I'm pretty sure no brain exists within their cranium but without a lobotomy to confirm it is hard to be certain.

Broadly similar to the cat paradox!

Not sure the company could have been much clearer, Testing will begin on or before 16 October once the wirleine unit is released from its current obligation by 10th October. We will advise if there is any change to these dates.

We believe the willing unit is from SDX and think others have noted SDX have moved.on from testing so the unit should be with PRD and testing progressing.

As an aside - some movement on dates potentially allows the company to continue CNG negs which appear advanced for offtake.

Note that ExxonMobil contacted the shale and did the seal quietly in two weeks. If the offtake is already advanced then it may be (relatively) easy to complete and advise when updating on outcomes.

See this running to the 25-30p range as the anticipation on testing results build. Should exceed the previous 20p ish highs seen previously.

Wealshspread - best of luck it's hard work but a blessing and great fun.

The current SP suggest probably 85-90% of equity would need to be ceded. That probably over eggs it but funding markets are not easy. Seems very likely Glencore will take a deeper, possibly controlling stake and see current SH perhaps being left with 25-35% of the mine.

Likely they will do this via convertible debt so they sit preferred to current shareholders in the capital structure. Can't come in above existing debt without permission/triggering an event of default.

I'm sending an email to IR team laying out concerns around:

- supply contractor that has failed to deliver on terms, what we're the liquidated damages in the contract and what contingencies were in place for non-performances of obligations

- progress report - what has been the frequency of these from the Technical Advisor and why is there such a sudden deterioration that management were oblivious too. What professional indemnity do those advisors (if in place) provide to HZM for maintaining a view on the project.

- design changes - why undertake design changes when the company is at its weakest. Conserve case and mitigate falling out this is Restructuring 101 and the minimum fiduciary duty to protect value for existing shareholders.

- information, the company is operating as if a Nuclear submarine on Cold War battle stayions and given the catastrophic impact of comms on the share price has fundamentally not shared sufficient info to exculpate the CEO/CFO from dereliction of duty.

Generally funding conditions are tightening as the effect of higher interest rates and rising input costs continue to bite various sectors. Hence, taking the funds and being in control of strategy/destiny is useful.

Until commerciality of gas is known then equity is more sensible than debt.

Fun and games in various sectors currently