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Don't disagree on the deepening helpful and to be fair I thought after the loan one would be started pretty quickly.
Wondering if they've taken a step back on those while they work out which is the best next contender after the 45B/Day didn't exactly shake the market?

Rather hoping they plan to do both helpful but we'll see..
On the positive though they've drilled the horizontal,found a "a good reservoir containing oil with significant gas" which we know flows at least which they plan to now flowtest selling the gas and oil as they do so whilst they simultaneously decide best completion techniques for better flow.
Basically they're a Georgian PANR only with some production already and have the boon of being 68 times cheaper.
Whats not to be excited about??

"What is concerning is the geoscience team pointed this to be one of the greater chances of success and any suggestion on here that they understand the geography better as a result of drilling is for the birds. "

Not necessarily correct imo.

They reported."Drilling data indicates a good reservoir containing oil with significant gas." with an extended test planned whilst they decide how best to complete the well "which may require further low-cost drilling operations to remedy or by-pass the wellbore failure and improve overall wellbore connectivity to the productive zones."

May yet be highly successful to early to call either way imo.

Not holding so many as that myself so rounded up this a.m. Fortunate to have a low average but really with high gas shows and some oil already and this marketcap it doesn't seem wise to consider a lost cause no matter today's disappointment with the unstable conditions of the bore.

Would be good to know what they mean by high gas volumes as they intend to sell same during the extended test. Suppose it will be a while before we find out?

“Intermittent testing has produced some dry oil with zero water cut and high gas volumes, despite the wellbore issue. The well will now enter an extended well test period during which oil and gas will be sold whilst data is acquired to optimise the completion design, which may require further low-cost drilling operations to remedy or by-pass the wellbore failure and improve overall wellbore connectivity to the productive zones.”

Think the plan remains as it was with their projects its just they now need to spend more time/cash trying to get a decent flow out of this damaged wellbore.

"The drilling and geoscience teams have done an excellent job completing this well, given the challenges experienced while drilling the horizontal section. Drilling data indicates a good reservoir containing oil with significant gas. The extended test will provide the data required to optimise the completion design whilst monetising both oil and gas produced. Production results and forward plans will be communicated once the extended test is complete and production rates have stabilised.

"Meanwhile, the Company is reviewing the data gathered during drilling and testing WR-B01Za to optimise the KRT-45_ST drilling programme, the second Project I development well. The Company continues to work on Projects II, III, and IV, and we look forward to updating shareholders as we progress."

Well at least they've updated. Same old same old though. Is it worth hoping they'll still pull a rabbit out the hat with testing is the question.

thanks steven, appreciated.

Is this new guy MBU's second board appointment?

Adam Wilson, Chief Executive Officer of Bens Creek, commented:


Sounds like you're right Banzai and Kudos to BEN for getting this far so quickly.

"We have been extremely pleased with the support offered by ACAM as we have reconstructed the business. We are now approaching full production and as such our operational cash flows enable us to commence paying down loan obligations. This is the first step towards full repayment of all our loan arrangements."

bit early should have read "and on the other site."

Getting a bit excitable as cashflow and profits get closer. Been a bit of a wait but looks to be well worth it imo.

Good to have this paragraph. Peeps were asking on twitter on the "the site" if they meant cashflow positive or not in their last RNS..

"As we transition from an exploration and development company into a cashflow positive mining operation the capacity for growth becomes ever more real. I am confident Gordon will help the Board achieve its aims of fully unlocking the value of Lubu in these exciting times."

Good time to be entering production then. Zim have big plans for coal too, believe they're pushing for $1 billion out the coal mining sector this year and an increase in steel production too.
Gives credence to CGO's reports on customers beating down the gates so to speak.
Looking forward to hearing on their (customer funded)expansion plans.

Interesting piece imo. Good to read they have very big plans still and with the offtakes they're discussing doesn't appear they'll need to worry about funding them.
https://www.herald.co.zw/lubu-project-coal-wash-plant-nears-completion/

Seems the geothermal/heat network preparations haven't stopped in Stoke. Just a bit under the radar with the markets.
https://www.energymanagermagazine.co.uk/second-phase-of-stoke-on-trents-heat-network-is-under-way/

ie..
"Once calibrated and operating efficiently the wash plant is expected to be able to produce 20,000 tonnes of washed coking coal per month which will satisfy its first offtake partner, AtoZ Investments (Pty) Ltd, and also provide sufficient supply to secure further offtakes for our coking coal."

and of course they already have more interest than they can cope with..

"As shareholders will be aware, we are now in our final phase of pre-production at Lubu as we approach commissioning of the wash plant and we anticipate first sales to our first offtake partner, AtoZ Investments (Pty) Ltd ("AtoZ"), by the end of the current quarter. During this development phase, the Contango team has also advanced other commercial negotiations and post period end, Contango signed a Memorandum of Understanding with a l eading Multi-National Company ("MNC"), which has the potential to support both a further expansion of the Company's coking coal production capabilities and also its future higher-margin coke production strategy. Final due diligence is underway, and we will report on these findings in due course. Given the MOU's broader focus than just coking coal offtake and subsequent potential to unlock significant value, the Company has not elected to enter into any additional offtake arrangements at this time, despite clear demand and interest from several groups keen to acquire Lubu washed coking coal."

They're holding back on any further offtake deals til they're sure they can cope with the full 20Ktonnes/months with the current washplant even with the interest being shown in their product at which point it will add to revenue.

They have wages to pay like any business but director remuneration is extremely low. Believe under £100K last year for the lot of them.
Question here has always been will they make it to production not will they be profitable thereafter.
Still quite a few doubters they'll get there judging from the boards hence the sp action.
I'm content that they will do but others as ever should DYOR.

They did state that being cash generative was round the corner and presuming they're quickly up to the initial 10K tonnes/month sounds doable imo.

"I would like to thank our long-standing shareholders for their support, and welcome the new entrants to our register, as I reiterate my excitement and enthusiasm for what is in store for Contango over the coming weeks and months and we transition into a fully-fledged and cash generative production company."

Meaning of cash-generative in English
producing a profit for a business: There is a solid cash-generative grocery business at the heart of the group.

CASH-GENERATIVE | English meaning - Cambridge Dictionary
https://dictionary.cambridge.org › dictionary › cash-gener...

Thought the below no's were good for GAS and wth two drills about to be given permission (Corringham and Glentworth) they could approach 3000BOEPD this year.

"H2 resulting in peak production (averaged across 5 days) of 2,432 boepd and December production averaged 2,221 boepd (net to IGas)"