Member Info for InJamesweTrust

I've seen delays be indicative of problems, for instance at Eco last year.

However, I'd need to check presentation and wonder if CN2 and CN3 are close together and they may be testing connectivity? Note they said on Tweet they are getting RC6 or 7 drill.pad ready so it would indicate they are on CN-3 and they've been historically efficient at drilling.

Definite.possibility they have encountered an issue so time will tell.which one.

GRH

You continue to be taking issue at the wrong things and seemingly seeking to exert a degree of control over who posts what.

I've answered the question to the extent I feel necessary in response to Androcles (whose approach you may do well to take a steer from).

Enjoy your evening.

I'd love to see the maths behind $200m/40 bcf

Not sure if its maths or (crystal) meth behind that calc.

Androcles

It is a large plant (near to Cove discovery) and expected to process gas for a field from memory up to 50 TCF over a long period. This will be for export and has sn LNG terminal as well as LNG trains for gas separation.

Once you get in to TCF transport and processing can become costly but obvs it remains worthwhile.

Just pointing out the Wholesale price does not flow straight to bottom line and share value as was alluded to yesterday.

It is interesting that you take more issue with mention of cost of gas infrastructure than a a poster who says a TCF is worth £5bn and on a quick sale will generate £2-4 per share.

I think some realism on prospects and time to realise the size of the field is useful.

GRH

Simply that gas infrastructure can be expensive to construct. Appreciate there is a pipeline nearby but also appreciate that if talking multi TCF and seeking to commercialise quickly more infrastructure than that may be required.

Bradley while 1TCF may have a market value of say $4bn, there are a few small steps required to get to that. Namely drilling and associated funding to prove that's what is there (a reasonably lengthy process). Then there is getting gas out of the ground and to market and the time it takes to derive the revenue.

Over 7 years, a 10% discount factor cuts that number in half and the costs in the short term need to be funded via debt/equity solutions.

For further context, there are few discoveries of this size made and if you get to the stage of a mega discovery it is mega cost.

I know the cost of the major LNG plant proposed in Mozambique by Total after years of drilling to establish resource and it would make your eyes water.

It's entirely.possible there are multi TCF at play but it won't be £2-4 in the next 6-12 months in my view.

More likely if testing successful to bump to 25-50p and a raise to be done probably in the lower end of this range to fund significant further drilling and testing.

Yes, I mean junior exploration risk - they are more often on AIM hence the generality.

Androcles

The James is indeed, from buying into Sound in the 40s and exiting at 81p. It was a play on Jerry Maguire. Didn't expect to stay in AIM but it is an interesting place.

The Nutech logs are new to me hence the questions so appreciate the candour of the board in highlighting. The look through potential of the Tech seems interesting.

Snagged

Wouldn't ever be fully into anything, risks too great. There does seem to be an opportunity for strong returns here in short time frame but as ever it comes with degree of risk.

Bloody hell, all getting a bit trigger happy on here isn't it. Can understand the Ire last week but today doesn't seem exactly earth shattering and I'm not sure is a great use of the courts time, up there with Wagatha Christie trial.

Flipping and flopping about buying some more here as continue to have nagging doubts that the wireless testing was inconclusive so the NuTech analysis is required instead. I'm not sure they flagged the reliance on NuTech prior to drilling - all the better if so but if not then is it clutching at straws to keep the story going.

Interested in the view on commerciality and estimates of what the rimless testing might produce from a tangible resource perspective? While PRD has doubled from lows, MCAP hasn't run away with itself. I'm not sure the results are as exciting as hoped but do seem positive seeing the fan extend and encountering more gas bearing intervals.

They will need to raise but may already have this in hand/underway as they'd have known this anyway - wonder if before but guess more likely after rigless testing.

Still a bit of a curates egb though as far as RNS language goes but may just be preferred style.

With the ESG credentials established by the board for HZM as an operator, in addition to the perceived positive environmental benefit of the output being used in electric cars, funding here with FCF as an equity base can be achieved.

Banks have much more capacity where there is an ESG element to fund and offset less environmentally friendly lending so it should be possible to minimise/eliminate the need for dilution. To the extent FCF is being used for PH.2 then the injection of cash from a.partner would be linked to debt and make up the debt:equity mix. The board has done very well in what at the time was a challenging funding environment.

The Russian experience has soured some banks Credit teams on EM lending but Japanese banks for instance support almost blindly deals where Japanese Corporates get a share of the spend in a big CapEx project. Have seen this directly managing some challenging deals in EM space for banks.

They can make an offer at the highest rolling average but the shareholders are by no means required to accept. If more than 25% held privately and voting against it can remain listed and valued as per normal market metrics, with the majority holders maintaining a fiduciary duty to the minority including arms.lengths deals and contracts on a commercial basis.

Hence, the danger presented by an offer from a 30% holder isn't so worrying.

Interesting presentation, $1.13bn NPV8 for Araguia 1 - is c.$4 a share. With potential for 4x Araguia 1 production then a proportion of this could be factored in to the likely end game, depending when it comes and progress in the interim on the feasibility study for later stages .

Definite hold and possibly add here for me.

Depending on the phasing of construction, makes sense to commission/test packages as you go and begin mining to have materials ready for final commissioning and indeed stockpile.

Great to see these steps being undertaken in line with timeline. I was involved in debt for a major engineering project in Middle East which is going to be over a year late due to poor planning of civils and engineering.

Hope strong performance here continues.

Adding here but also likely to take some PRD too at least through toward the next drill. Here it is longer term as I feel prospects are stronger. Interested to see next drilling outcome as and when it's complete.

No sour grapes on Sound - I sold out of there and Hurricane at a healthy profit. I'd simply say, the only mention of a discovery by PG is the shallow sand gas RNSd earlier in June.

I sincerely hope PRD is a success, just don't believe it is yet nailed on but that is the risk we all take in stocks like this.

If you're above 50p by year end, I'll eat my proverbial hat, although I hope it is. Good luck for it but I think it takes longer than many here seem to assume.

So which part is erroneous? I'm happy to be educated.....

If gas price is higher it normalises as supply increases

Pipelines need to be accessed and these need supporting infra and they need to have the capacity to carry sufficient gas...to market

New money has a hurdle rate