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NHE securing its funds is a big tick in the box for many who have been on the side lines until now. You can see SOME of that money starting to commit itself now. But I would imagine that a LOT of the side lined money will ONLY commit itself once the Rig contract is signed, and the risk of not drilling in Q3 is totally extinguished.

This is a story stock, with the story to unfold over the next 4 months, and both He1 and NHE will undoubtedly be pumping out the media and comms between them over this period. It should be one of the hottest and most closely followed drills this summer, in a market that isn't offering too much else.

Hopefully, the starting pistol will be fired next week with this much and long awaited Rig RNS. GLA

I agree with much of what Sharebel and Chickenlegs have said. This could make a really good recovery play for newbies and existing holders. BUT, the issue of "time/delay" is still the key factor here. That was the one thing that I was eagerly listening out for in the recent webinars - I was less interested in the three options that BG spoke about, and more interested in how long it would take to decide which one. The recovery here can only really start when this point is reached and communicated to the market.

I'm afraid that for me there was simply no clarity about this. OMI just don't know what the majors will decide AND more importantly, by when. They didn't even seem like they were even pushing the majors hard over resolving, and were coming across as helpless passengers. There was nothing said about share price and shareholders, or about time being of the essence here. It just seemed more a case of just waiting on the majors and it will take as long as it will take.

I've been there before where something looks cheap, and then before you know it, you can still end up 50% down. And so what makes a worthwhile entry for me is not simply about how cheap or oversold it is, but things like: 1) how CLOSE or FAR it is to delivering news that will reverse the situation and bring in the buyers en masse, and 2) how much of a drop is there to the next support level? The longer (1) takes, the more likely (2) becomes imo.

So overall, I am waiting on (1), and the longer it takes to signal its arrival, the more inclined I am to expect (2) to happen, and therefore LESS inclined I am to enter. But at some point, which could be in a few months, or might take a few quarters, OMI will get to (1), or hint at getting there, and that will represent the right price and time for me.

But that's just how I approach such situations, and it could turn out to be the wrong call completely (both in terms of entry price and timing). However, we all live and learn from our good calls and bad calls, and ultimately its each to their own. Good luck to all in whatever you decide to do and when.

Yes, I also read yesterday that the placing was to close during market hours, so knew we would not get anything until Sunday night.

I would imagine that the Rig contract is all but agreed and ready to sign “subject to NHE’s funding”which they now will have. And I think NHE might still end up drilling two holes.

And yes, today’s trading should be interesting to see what happens as next week should see us finally get this Rig RNS. GLA

Yes, and all the main media channels will undoubtedly be there to cover the Rig signing ceremony, with ribbon to be cut, balloons galore being released (helium ones obviously) and both CEOs running towards the Sofori Rig with unbridled joy shouting finally. LB gets to go first obviously.

Alternatively it might just be a RNS announcement without any fan fare at all.

Clearly, NHE will have been in discussions with the relevant broker(s) about the possibilities for a placing for a while. This might also explain all the pumping etc beforehand. I've also read that $10 million of the $12 million will come from an insti.

But really, none of this really matters to us, so long as they secure the necessary funds, which by the sounds of it they have done, and then sign the Rig contract. After that, no need to follow them as closely I guess, unless anyone is interested in buying NHE.

They could lift the trading halt for Friday, but Monday seems more likely.

I said a short while back that the issue here is one of "time". The longer it takes for OMI to offer some sense of resolution, the longer the share price then has and will just drift down. Very few AIM 'investors' will stick around if there isn't some light at the end of the tunnel - there's been an exodus already. At the moment, OMI is firmly in the dark tunnel and probably stationery. As soon as this JV starts moving in a particular direction, then so will the share price and represent a strong bounce back play for others. How long will it take for that RNS to be issued though?

KR - I don't think most of the side lined money will commit itself until the Rig contract is actually signed. I've added, but held some back for the same reason. After all, our CEO is also seemingly waiting for Rig contract before she commits herself to doing more media and comms.

We also need to remember that a lot of placing investors will make more money from flipping at 7p, than many retail investors will make from holding for much longer and the price reaching the 20s. The placing raised £10 million at 5p. Anyone who acquired £250k worth of placing shares, for example, and sold them for a 40% profit would make £100k.

Compare those returns and how easy they are to make (in terms of probability, lower risk and liquidity), to the average retail investor who puts in £20k at 6p. The retail investor would still only make half that amount even if the price goes to 20p, taking more time and risk in the process.

Which is the smarter play?

Retail investors are always at the bottom of the food chain, often mere cannon fodder. You have to incentivise the placings, in order to raise the necessary funds, which means the brokers involved probably set the terms more than the BOD. Various methods are used to achieve this incentivisation (forward selling, free or cheap warrants, flipping of shares made easier by discounting the placing shares, etc, etc).

The time it is taking to sort out this drill, should mean that most of the 5p shares will have been flipped already?

Both projects sound very exciting indeed. I know these interviews are scripted, but the excitement from AH in particular sounds genuine and based on the specific early sampling finds. And as these are maiden drilling programs, then any early finds at either of them really opens the door to huge potential upside from these very low levels. And if POG makes its next run up in H2 as well, then it could all coincide rather nicely. The main stumbling block is the finances. They clearly have enough for one more drilling campaign, albeit RC and not diamond, but ideally you would want a couple of million at least to attack these projects and give you proper foundations, rather than a boom or bust type of situation?

Does it actually matter if we end up drilling in September. And actually, if NHE only end up drilling a single target, it won't matter much to them either?

Skippy - I think most of us would have preferred to go it alone. Collaborating with a rival play is unusual, and to then do it when they were unfunded was also very risky. And then for He1 to do this collaboration after they had already failed with 3 previous attempts to get a Rig, must mean that our options to go it alone are very limited or extremely expensive.

This probably explains why NHE approached us in the first place to collaborate, and we readily accepted that by the looks of it.

KR - that's a fair point, and I was going to ask KeithOz whether ASX listed companies engage in the same antics as AIM listed companies when it comes to such matters. The answer would appear to be 'YES' from what NHE have done.

However, I have read that $10 million of this capital raise is going to come from an 'institution', and wonder whether that will be Prime Energy and/or its mystery client(s)? If so, then maybe the farmout wasn't failing, and this arrangement better suited the parties. But we will only know when we see who the insti is that has backed this capital raise?

Yes agree re LB, but she will need to step it up on the comms, once the contract is signed. All imo

I would imagine that once the Rig RNS is out, LB will also then step up the media and comms. We have been outdone in that dept by NHE so far. DM was actually quite good at promoting the company, albeit he started to lose credibility towards the end with many.

Yes, can't get filled under £10k. Bid ticked up as well.

What do people think - Rig RNS next week?

Excellent news - I did wonder about and mention the possibility of an equity raise on here yesterday. And it could still be that Prime Energy (and/or its mystery client) are going to be the main investors in this placing. Less 'red tape' that way as well?

But anyway, who cares so long as they are fully funded now to sign the Rig contract with us. Time to add more. GLA

Actually, if NHE fails with its farmout, we also need to factor in that NHE could go on to do an equity raise instead, but obviously not for $20 million dollars. I only raise this possibility because one of its large shareholders issued an investors' notice last week outlining this possibility/risk. This might introduce a short delay, but would at least allow the parties to proceed with the collaboration with Sofori?

But I do think talk of plan B is premature. I remain hopeful and expectant that Plan A remains intact and NHE will confirm its farmout within days. All imo

Aligator - to be clear, I am saying that the timescale for agreeing a Rig contract with Sofori will NOT be an issue. I believe the key terms of this contract will already have been agreed and it is ready to sign.

Of course, if the farmout fails, then I don't necessarily disagree with your outlook about how long plan B might take. In fact, unless plan B has already been teed up in the background by He1, it would be very difficult to start a new process with a different Rig provider and have everything ready for a spud in August. But it could be done for October, again assuming some of the leg work has been done already in the background. All imo

Aligator - in a recent interview, the CEO of NHE confirmed that the Rig contract was pretty much ready to go, mostly containing standard terms. I would imagine that the contract is ready to be inked, but NHE can't sign it until their farmout funding is inked as well. So Rig contract and its timescale is NOT going to be an issue here. It's the funding/farmout that is needed before the parties can sign it. What I will say is that if the farmout fails, I don't think its then simply a case of HE1 going it alone with Sofori, as many are suggesting on here. I think in those circs, He1 will actually need to contract with one of the alternative Rig providers, assuming there is one willing to drill a single hole and we can still afford the going rate for that? All imo and dyor