Cheers Scott. An interesting read, it's clear the process to get the gas flowing at higher rates takes time. These initial rates were clearly just that. From that report;
"During the dewatering phase, water production is relatively constant and gas production is negligible."
Scott how did you come up with these projections? Are they a guess or do you have knowledge of the likely increase in flow rates for CBM lateral wells?
"Imo both pods are now at around 25 mcfd and will continue to add around +20 mcfd minimum and prob much more per month until peak is reached."
That did make me laugh applegarth! To be honest it wasn't even intended as a ramp. I genuinely hold those views. I've done pretty good in the markets over the years and I like to think there's a bit more to that than blind luck, in fact I know there is. I know some regard chart reading as akin
to reading tea leaves, all I say to them and you is watch and learn ;)
Found this from a few years back... company talking about just the Lesedi field:-
“But we believe this field has more than enough gas for 300 megawatts of power production, and that’s something we expect to be working on from 2017 onwards. In addition, the partners we’re talking to now are all very interested in being part of that larger-scale financing as it progresses.”
I think Zak Mir called this absolutely right the other day when he labelled it 'chart of the year' it really is a thing of beauty. The strongest looking chart I've seen in many a year. There will be pullback OR consolidation points of course (with charts this strong a consolidation is more likely at the moment than a significant pullback) but the daily and weekly trend is VERY strong. I see the next possible resistance as the 200 DMA @ 0.00125 which is also a price action resistance point on the chart for added confluence but ultimately when we get the 50/200 DMA golden cross in a week or two I'd expect (given the aggressive angle of trajectory) a 4 to 7 fold increase again from that point. So what are we looking at? 0.00125 by the end of next week and within the next few months we'll be much much higher again. This isn't going parabolic it's going hyperbolic. Hold on to those winning tickets people you just hit the jackpot!
LR stated way back (before all the new news that's been talked about) that he would 'consider' selling for £70 million so divide that by the number of shares in issue and you get 0.0058445354 so over half a penny should be anyone's target price FOR STARTERS! With all the aforementioned news to come would he really be happy to give it away at the same price? Of course not! It's not rocket science. Institutions don't get involved for beer money. Hold tight and they have to raise it. I'm holding 75 million and I'm not selling a single share at these stupid prices. DYOR!
I thought it was a fairly positive and reassuring update to be fair and I like the fact that they clearly set out the work program for the next 12-18 months. The only real problem with it was that there were lots of 'possibles' and 'hopes' and 'potentials', the kind of language that worries the market in times like these when peeps want certainties. It's also the kind of language that TG likes because he comes across as a very cautious fellow. So I always add 10-20% enthusiasm and positivity to his announcements lol. As I say I thought it was a decent enough update. No timelines had changed for the hope to announce commercial flow rates and PPA. It's hard to be patient when you've waited so long but sometimes that's all you can do. If we consolidate here that's fine, if we dip lower I'll probably add some more. TG's record speaks for itself and what he's trying to do here could eclipse what's gone before and make the patient investor very rich imho. PADYOR :)
Nice strong candle broke through the 200 DMA yesterday. I thought we may pull back briefly to test the 200 DMA now as support but the Stochastic is still below 80 and the RSI has actually turned back down so we could well see more here before we take a breather... PADYOR
Imagine if they have stumbled across another metal... he did say they'd found something interesting, I was wondering about that comment. We shouldn't get too carried away just yet but the assays of this last hole will be very interesting!
The reasons people are fairly confident are as follows. First and foremost the company themselves have already implicitly stated that they will be announcing commercial flow rates. Secondly they have been running their own generator off of gas flow for some years. Someone posted figures on this thread for previous flow rates which were more than adequate and even in the worst case scenario (which I don't envisage) they would just need to drill another hole.
They are letting the pressure build to an optimum and stable flow rate before releasing flow rate figures to the market. As always with TG a sensible and cautious approach. With any AIM stock you get drift with a dearth of news and investors start to imagine all sorts of worst case scenarios.
We broke through resistance today and bumped up against the 200 DMA in the process. As might be expected this enticed some stale holders to exit stage left. That large buy was very encouraging as was the huge volume. Despite the sellers they we still showed strength and finished positive. 20 and 50 DMA's have now turned up. I see price breaking through reistance AND the 200 DMA next week, tomorrow if the herd are super bullish... Strong Buy imho. PADYOR.
Personally I'm just looking for them to confirm via rns that they have between the two holes enough gas to deliver the 2 megawatts, anything more is a bonus in my book. What would I consider a very good result? Perhaps getting the required flow rate from 1 hole? Meaning they could effectively double production without any more drilling, de-watering, testing etc. that would be a great result in my book but as I say just fulfilling the 2 megawatts needs will do for starters.
On the recent shareprice performance, I think you have to look at the greater macro picture of trade wars, Brexit and the summer doldrums. Some good news (commercial flow rates, ppa and financing) and a move into autumn and we should see things improving. A resolution to trade wars (likely given US 2020 election) and Brexit (trickier but even some certainty of in or out should help) and we will fly. PADYOR.