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Its a good point WAa. I haven't added up all the lease costs and annual payments, but doubt the difference will be that significant if it is more than $23m.

And on the whole that acreage was acquired for the HRZ, which we've still got. So a fully funded drill while still keeping a decent WI for the conventional targets is a good bonus.

My impression is that the plans have been amended after they established the existing copper circuits at the plant could still be used without much work involved. And reading the RNS they have also established that they can use much the the same circuits for both copper and zinc without permanent changes, so keep capacity for both. Although the time scales for zinc looked to have slipped in the short term, this appears positive in the longer term as we've added permanent capacity for copper production to the plans.

Gives a bit of a firmer timetable for events to happen.

Q4 2019 - copper refining circuit, upto 3,000 tonnes per year
Q2 2020 - Zinc and Vanadium, 8,000 tonnes zinc in concentrate and 1,500 tonnes of vanadium pentoxide
Q2 2021 - Lead with 11,000 tonnes in concentrate.

But doesn't quite fit with what GLR are saying, they say they're going to send ore containing 12,000t zinc per year to kabwe. But we've only capacity to produce 8,000 tonnes from that ore plus our tailings. We can't get the vanadium without processing our tailings, so somewhere the numbers don't add up.

Yes, and I guess the side track will depend on the results the initial results. But its good this is included in the plan from the start, and is hopefully all included in the agreed cost.

Also not being mentioned much is Premiers funding for 3D. Our release just refers to them spending $15m for their option on Area B or C, but Premiers presentation gives this as funding for 3D. Cost for 'Area A' 3D was around $8 I think, so assuming $15m will cover both Area B & C. That has potential to add huge value, at the moment we don't have a clear idea for whats there, and I doubt we could move forward with either area without it.

Good article, nice to have some informed opinion for what Charlie 1 will be targeted. I had thought certainly the Stella stacked prospects/discovery in the Torok, and a possibility of one of the Schrader prospects. But they've worked out its targeting 7 in total including Lima in the Seabee formation.

With the new working interest, it works out that this one single well is targeting over 3 times the net resource that we were targeting at Winx and which everyone got so excited about. And unlike Winx we don't have to pay for it.

One major thing they've not factored in though is possible changes to the HRZ. The estimates are still based on gross acreage of 271k acres. We've added a lot more land since then and the fairway has been revised. I think we'll get a new estimate when its ready for farmout.

18.49- The 1B oil in place is an estimation almost certainly based on the Middle Stella Discovery only. Hence Premier also say "considerable upside".

Having seen their results presentation today, they've overlayed an image on the map that corresponds with the shape of the Middle Stella discovery from our October 2018 portfolio update. That's identified as having 292MMBO in the Torok formation, which would also fit with PMOs release saying 1B oil in place if their working on a fairly standard 30% rate for recoverable oil.

So there is indeed considerable upside, Middle Stella represents just 12% of the portfolio in what is now called Area A.

Brom 16.19 - I was invested in PMO a several years ago, sold because they were making a big loss and I thought there were better investment options.

Can’t say I really know a huge amount about their current projects, but they looked to have turned things around now and making decent progress with profits.

The level of trading today doesn't really look like a big sell off. The bad news day with winx saw a drop of about 40% and 217M shares traded, no doubt a lot of those sells were from short term traders who'd bought in just for drill results.

Far less trades than that today, and really all the SP has done is fall back to the equivalent ASX price on their last trading day (1.6c).

Hopefully he will, and get that presentation out soonish to give some more detail on what has been agreed on. Most of the information has come from PMO, and its unusual that DW hasn't given that much info at the moment. Hopefully we'll get a more comprehensive update in the presentation that also includes the forward plan for Yukon and launching the formal HRZ farmout as well.

13.43 "Must have some fantastic drilling and testing equipment to drill and test in 1 quarter"

How so?

Winx had a 45 day drilling schedule from spud to flow test. 91 days in Q1 2020. Doesn't seem that unrealistic to me, weather permitting.

A note from Cenkos has appeared on twitter. Its a bit blurry, but some of the highlights are:

* 88e will retain a meaningful 30% working interest within the Western Fairway, containing net mean prospective resources of 720mmbls
* Whilst some investors may have been expecting the farminee to be a major or supermajor, we would suggest that such a counterparty would have sought a 75%+ working interest, significantly reducing 88Es working interest and potential value to shareholders
* We have updated our valuation, reducing 88Es working interest across the Western Fairway, whilst increasing the chance of success across those prospects targeted by the Charlie 1 well. We update our target price to 2.6p and maintain our buy recommendation.

https://twitter.com/AndyMDon/status/1164447714513477632

CB has already appeared to rule out the prospect of LC agreeing for JLP to provide funding for Star Zinc during his UK investors presentation.

Maybe LC will change his mind, but you need to remember that if we really need zinc ore to optimize the process at Kabwe, then GLR/Star Zinc are not the only source we can get it from. We will have options, as has already been indicated in the JLP RNSs that mention it.

According to PMOs presenation, their option for Area B or C involves them paying $15m for 3D. Based on costs for 3D on Area A, it looks like this will be a 3D survey across both areas. But its unclear if they have to choose an area before or after 3D results are in. But I would guess our options to farm out the conventional in either of those areas are limited until we have 3D on them, so doesn't really delay a further conventional farmout on the remaining area that they don't take.

Hopefully now we've got this farmout done, we can push forward with the HRZ farmout and/or Yukon

Islayman 11.43 - The 1B oil in place is an estimation almost certainly based on the Middle Stella Discovery only. Hence Premier also say "considerable upside".

Having seen their results presentation today, they've overlayed an image on the map that corresponds with the shape of the Middle Stella discovery from our October 2018 portfolio update.

So there is indeed considerable upside, Middle Stella represents just 12% of the portfolio in what is now called Area A.

Yep, we saw far more shares traded during Winx, over 200m a day on a couple of days.

It looks like Charlie 1's primary target is going to be Middle Stella Discovery, detailed in the October 2018 Portfolio Update (Page 3). Comparing the map on the RNS today with that update, the site for Charlie 1 is on Middle Stella. That's identified as having 292MMBO in the Torok formation, which would fit with PMOs release saying 1B oil in place if their working on a fairly standard 30% rate for recoverable oil.

Premier also say considerable upside potential, which again fits with the October update, where it lists Stella as a stacked Prospect/Discovery, with gross mean of 639MMBO.

Its my view that Premier have just worked the safest figures possible, that being what is already identified as a discovery and not including any figures for other stacked prospects. But the combined targets for the one well could be far larger than 1B oil in place, more like 2.1B oil in place using 30%. And that in itself could be conservative, at Prudhoe Bay they're now getting on for 60% with the advances in technology.

Its difficult to tell from the maps if any of the other prospects could be hit from that location, but its possible it might be more than just the Stella Discovery/Prospects.

Hopefully the next update from DW will give some more detail.

October portfolio update
http://clients3.weblink.com.au/pdf/88E/02037520.pdf

Sorry guys, but how does anyone come to the view Premier are bigger than Repsol? Their MCap is in Euros these days not Pesetas.

Premier MCap ~ £600m, Repsol ~ EUR 19B

Still a large company with decent revenue/earnings, but perhaps more aligned with our overall strategy of proving up and selling on than one of the large majors would be.

At least the Premier share holders have taken the news well, up over 5.5%. Pretty good rise for a FTSE 250 company

Not sure where that's come from, but Premier is not bigger than Repsol.

Next up they'll be moaning that DW gets paid for doing his job