Member Info for LockedIn

Two wells yes - 16a and 38. Completed by end Q1, not so sure. I thought the target was for both wells to be producing 900bopd (conservative estimate by company) by end H1 2019 not Q1.?

Swapping 2.5% of (dead in the water) MCPP for ~15% of MCPP, MCIPP, BIPP, MAST. LC has been in bed with Sanderson for far too long.

Slightly confused on when to expect newsflow. Just listened to PH's Q&A on Vox which is dated 1st March 2019.

He talks about being "in or around TD" at West Rustavi and that there is a 600m horiztonal section to drill yet we had an RNS on 23rd Jan stating sidetracking operations had started? Was the Q&A done before 1st March?

Also talk of an update "shortly" on Norio workovers completed to date. Expecting this imminently.

Must be very close now. JW hit all targets in 2018.

I've got ~7th March in my notes for equity provider DD completion. Offtake agreement on track to link in with equity provider conclusion so there's very good chance of an update end of this week/start of next week.

Both EPC and OE ITT close on 15th March which is next Friday. Serious newsflow by 18th March at the latest, expecting updates between now and then.

Chunky buys arriving, SP still below recent 1.2p placing price. Money to be made here.

Cheers chris. Think Colter result may come in first now...its was supposed to be very close between results at MS and Colter but with MS spud being delayed slightly I'm going for more oil at Colter followed by rapid success at MS.

Bigger question is when is this market going to understand the Reabold model? Shares available at .66 and we're slap bang iin the middle of delivering of the last 2 years plans! Strong Buy.

Has there been guidance provided on how long the wells at Monroe Swell will take to drill? I know they are short drills but has X days guidance been provided?

Top post chippyjo recommended

Thanks trout, I shouldn't speak before first coffee of the day!

is it "progressing well with further announcement expected by the end of March 2019"

or

"the restructure of the debt is progressing well and will be announced during Q3."

???

CERP's ability to continually drop lower is actually starting to impress me. LK and co are well respected, they're delivering on what they are promising, their producing profitably, the wheels are in motion for the next phase of growth a la SWP and still the SP drops like a stone.

At a sub £20mil mcap I'd suggest there is some serious money to be made here but it's hard to press the buy button when the SP seems so determined to continually make new yearly lows.

SDX having a horrible time of it since the middle of last year. Looks like previous support at low 34s will be tested this week.

Whats causing the decline in SP? A lot of activity seems to be lined up for the middle of the year/H2 2019 which may have put some people off. Financials (March?) should make for good reading as 2018 was a year of success and further cost savings and success with the drill bit has got to help turn this thing around.

Finally some movement here! Would like to see this trading high 5s or 6s prior to interims. Expecting some good numbers and the long awaited debt refinancing should really help to kick this on.

Great example here of a turnaround stock. MRS was knocking on deaths door not so long ago, complete turnaround now to profitable, growing business. Sentiment still not returned making this a great opportunity to get in prior to the volumes returning.

Picking up shares in the 4.1p region seems like a safe bet. Way oversold on the daily, selling pressure weakening price bottoming out around low 4's.

Expecting imminent newsflow - confirmation of YA loan deal paid off in full. Pumping at Balcombe either this week or next. Board appointments. Lidsey/Brockham updates also a possibility.

The catalysts are there, should be some easy percentage gains from these levels assuming JTP and co get it right this time.

I was expecting spud RNS this week.

Yes randomaxe, PREM are owed $20m+ from RHA as it stands. The potential upcoming funding will likely see a reduction in the loan account to $(current balance - funding received) whatever that may be. As long as existing terms are not updated then PREM are entitled to 100% of profits from RHA until the outstanding loan account balance is cleared.

Nap agreed the $20mil is owed to PREM from RHA subsidiary and it does look like the proposed deal will be $6mil in return for a reduction in the outstanding loan account balance as opposed to any equity change.

That being said, Zim Gov are not going to hand $6mil to PREM for GR to go shopping. It all depends on what is agreed upon of course, but PREM and their consultants have proposed that it would take approx $6mil to bring RHA back into profitable production with the various plant modifications, extra drilling etc etc.

I'd be very surprised if the capital from Zim Gov could be used for any means other than getting RHA back into production. I hope all expenditure will be laid out in the upcoming RNS, which would answer this Q.

The $6mil is to fund RHA, nothing else. Zim Gov are not investing in PREM, they are assisting in funding RHA - the asset they hold a majority stake in.

No money to progress Zulu although the KME deal should enable drilling to at least be restarted. No money to fund HBR costs to production. No money at PLC level.

RHA funding confirmation, share price rise, PREM placing, KME/HBR deal completion, Zulu restart. Likely in that order. Could well place alongside deal completion as share cap will need to be raised.

Thanks abso. Any pointers to the success of the new micro-drilling tool or indeed any confidence around hitting the 250bopd H1 target?

I would use Fuads suggestions of 1.5-3p per share when valuing PREMs Circum holding. If PREM were to hold on for production at Circum the number of shares in issue @ Circum would likely be a lot higher therefore diluting PREMs holding. The 7p was also a complete guess by GR as he openly suggested.

Offtake agreements to fund Zulu to DFS would be nice but the asset is still being proved up and I'd be surprised if there are parties willing to commit funds at this stage in the asset lifecycle. Look at the failed JV deal with KDNC last year - there was supposed to many interested parties but that was the best PREM could secure. The asset was not proved up enough for others to get involved and nothing at Zulu has changed since then.

HBR would require massive dilution at current levels to secure then significant capex to bring into production. PREM have no cash at PLC level to fund this.

1p to 2p is years away here. Zim funding RHA is the first positive step for PREM in years but this will likely be tempered by a placing in the .2's/.3's. Baby steps...

Big GR pulling it out the bag for once! Top marks that man. I'd expect the Zim Gov to provide the required funding ($6mil worth of Zim Bonds) in return for a reduction of the $20mil+ outstanding balance owed to PREM from RHA. The equity position will likely stay the same (51% Zim 49% PREM) which is fine by me if RHA can FINALLY turn a profit.

Next news of actual deal terms and 4-5month plan to get RHA back into production should really get the SP back to a fairer valuation. This will obviously help with the proposed HBR acquisition and the inevitable placing to fund PREM at group level. I hope GR gives the SP a chance to move but I fear the need for cash at group level will drive timelines around the next placing. The race is on.

Technicals looking decent, bounced off the daily MA50 and had a crack at the MA200 earlier. Closing above this would bode well for further upside. Volume is good but RSI looking pretty lofty.