Member Info for miker444

Hi lucky2
Out of all California projects Grizzly is the one that may well need extra funding as all others will be self financed from preceding drills if successful.
Grizzly is a bigger concern, Steve & Sachin have openly stated that Grizzly is more exploration than appraisal but expect it still to be a success.
Still think Rathlin and extra acreage of newly awarded Colter blocks are worthy of a £2.65m fund raise but expect we will have to pay a bit of a premium for extra % of West Newton now it appears to be a bit of a monster. May be decisions are already being drawn up for next years drill/s of West Newton, after all there is 176,000 acres available running room and imagine if we get even just 1 more of similar size. The site will be bigger than Wytch Farm and then some.
atb

I also think Rathlin and possibly Colter South extra acreage/licence blocks.
Not disagreeing Angela but thought California, best part at least, was self financing from revenue after each producing well came in for the next one.

Hi Helpful, I certainly think Simon Gorringe wants to conclude a deal with Colter, it's a big fish for all the tiny JV partners, and in his eyes I believe he wants to bring back some personal credibility / integrity call it what you like to his somewhat beleaguered standing from past ADL history.
Couple this with what I now believe is a pretty significant Indonesian deal with buckets of 'running room' (if the workovers are a success in increasing production) then he will go from not quite a villain to a hero. imo.
atb

It's good it shows that talks are still ongoing on how to prove up for 'sale' but not sure news is imminent, love to be wrong, Colter for me is a bottom drawer and also think the Loan Note was prepared for this, best part, to continue and possibly take part in the extra acreage the new licence blocks recently awarded.
Big returns but significant funding needed for the extra work, all good but we are just 2 weeks or so away from first production of the workovers. End of the month latest, that's pretty imminent imo :¬)
atb

Looks like I will be topping up some more lol
atb

Thanks Greg, appreciated.

well over the ask, perhaps the workovers have made some realise that whilst its not deal of the century it will add a decent rise to the sp once producing, it has to at this incredibly low MarCap irrespective of Colter / Eagle or anything else that may / may not come our way.
Remember we were at 1p on hype of Colter alone, now we will be producing and in a matter of weeks hopefully.
atb

Thanks Greg, not a big twitter user so not sure what follow back means but I will look out for any tweets, thanks again.

Hi Greg you can e-mail if you want mread36@yahoo.co.uk or twitter Michael John Read

Hi 37h for me mate its just the simple fact that at long last we are close to a revenue income. These workovers are already producing ( 3 out of 4 ) so a pretty safe bet to increase from. If Greg is correct and we have quoted under achievable volumes then the sp will re-rate strongly.
These workovers excite me more than Colter / Eagle.
They also do not appear to be a roll of the dice which looking back with hindsight both Bunga Mas and and Badger were.
Our Mar Cap is tiny, rightly so with our previous embarrassments but it looks set to change, fingers crossed.
atb

Thanks Greg, you seem confident mate and Gregor Mawhinney comes across as the real deal whose body language suggests he cant wait to get started, almost as though he is frustrated at the methods and lack of ability in bringing the wells to their full potential.
If he impresses with the results lets hope its a kick start for many others.
atb

Greg,
If we can get anywhere near 200 bopd I would be ecstatic, that will definitely give a re-rate from this current sp, and 250 bopd would be incredible even after deducting the current 70 bopd being produced. That would give us 90% of an increased 180 bopd and therefore circa 160 bopd.

For comparison RBD on their presentation page show the 4 workover wells they have in California produce a total of 70 bopd (RBD only have 50% ownership of them) and it has been given an NPV of $10m!

It does give some insight of how even very small amounts can accrue to a substantial NPV, or at the very least a substantial NPV for Company whose MarCap is only approx £900k, for those that are risk averse for not a lot of money the returns could be a couple of multiples in a very short space of time, certainly for new investors.

It was very hard watching the sp /my £52k go down to less than £9k but am glad I did not sell a single one and held my nerve. If the workovers fail I will then give up!
atb

Well, whilst its early days its just a nice change to have posts a little bit more upbeat than a few months ago when all we had left after Bunga Mas and Badger was the remains of a Colter South drill being / not being commercial or not.

The work overs are real and we hopefully will have a source of revenue to underpin the company which correct me if I am wrong is a bit of a culture shock for ADL!

I have averaged down from 0.95 / 1p to 0.4p and holding nearly 20m ( it was my £18.6k last week) so more hopeful that this is an achievable sp to at least get me back to break even book price, and hopefully a profit, who knows lol.
atb

Simon that makes perfect sense and the right way round to go in to negotiations , obvious now you have stated it ! thanks.
atb mate

Just wonder how long we will have to wait to know where the money is going, I would have thought it would be the order of things that the further investment 'cost' would have been known prior to the raise and subsequently how much to raise.
Hopefully an RNS soon on the back of this.

In existing portfolio, so looking at everything we currently have and with California self financing further wells it does seem likely that we are looking / have already discussed with Rathlin in increasing our 37% ownership.
Question is how much will Rathlin be happy to part with knowing West Newton has been pretty much de-risked and the sheer size of the beast.
The price will be at a huge premium to our previous £3m getting 37%. This time around I suspect £1.5m - £2m may get us a further 10% if we are lucky.
With the huge returns that would be a great result in my book, either way some hard ball negotiations will be had by both RBD and Rathlin.
But what a nice position to be in irrespective.
atb

Thanks Greg, appreciated.

Thanks Greg, out of the two options which would you consider as the best scenario for ADL / shareholders.

Greg sorry to be a pain but still unclear even after Reading RNS. If the workovers are increased from the current 70 bopd to 150 bopd how many bopd net will go to ADL.
I am assuming the 70 bopd is total from all 4 workovers, average 18 bopd from each of the 4 wells. Do we get 90% of the increase of 70 bopd - 150 bopd i.e 90% x 80 bopd ( 150 minus 70 ) so circa 72 bopd.
Or is it 20% as worded 'Participating Interest'.
Any explanation welcomed in advance.

Thanks Greg,
that's in line with my way of thinking, the workovers will underpin the sp at a higher rate than where we are now, I would be very happy ( assume Optiva will be also lol ) at 0.45p before / if anything else pans out.

I genuinely think the extra lincense blocks awarded (Colter South) is a statement of it eventually being proved up (with bigger volumes) then 'sold' on, just will take a good few months from now but may as well wait as nothing to lose and so much to gain with our current tiny MarCap and sp so low.
atb

IMO of course, atb.