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I would add that the farm in announcement was made on a very bad day for the wider markets, which now appear to be stabilizing. All CLON needs is one spark to set it off. The fundamental proposition is in place. Once the SP looks like it has consolidated and starts to move higher I would expect it to snowball. Last week's 0.80p is the obvious initial target, but I won't be surprised to see a break above that level once it gets going. The best way to clear placing shares is to spark a huge rally and sell into the massive buying volume. Of course, anything can happen so consider your own situation and position accordingly.

To put the current SP in perspective, in 2019 when oil and gas price were much lower ECO reached about £190M market cap ahead of Joe and Jethro drills which combined were about 55 MMBOE net to ECO and 41% COS. We are at £10M for 136.7 MMBOE net at 32% COS. On the same multiple per BOE risked CLON would be 15.5p BEFORE drilling. Obviously we have some placing shares to churn, but hopefully that conveys the level of cheapness here.

Forget about production at this stage. It's all about unlocking a major discovery. The choice of what to do in the event of a discovery is yours, but I will take into account the market cap on discovery, the forward plan, the balance sheet and various other factors such as likilhood of a takeover or asset sale and whether I'd rather just relax at the beach, but everyone's assessment will be different.

Vbeckers, Most AIM stocks have very little or no institutional investment yet many of them have extremely big moves higher so that is not a factor. Indeed many exploration stocks regularly reach hundreds of millions in market cap on the basis of a single drill, even with targets much smaller than CLON's net share of Sasanof-1, and we are only £10M (!), so a much a higher valuation pre drill is eminently feasible.

Generally speaking the market is not concerned with development at this stage in proceedings. It is the same with mining exploration stocks. Explorers tend to re-rate ahead of transformational exploration and then again as development moves towards first production. There is usually some lag between the two, so some people may sell on discovery. In the success case I imagine CLON would look to sell the asset although a takeover would be the most likely outcome IMO.

Quite right Dicko. Anchois-2 was estimated at 151 MMBOE gross going into drilling and Sasanof-1 at 1,367 MMBOE on a 2U basis. The fact Sasanof is surrounded by other major discoveries and developments is a huge plus as the Australian jurisdiction. The point is that even compared with Anchois-2 pre drill this is super cheap on a BOE basis. The rest is just cherries on the top.

75%. It's all factored into the calc.

CHAR was one of the cheapest drills I've seen in a long while on a risked BOE basis, reaching around $0.93/BOE in the run-up to Anchois-2. CLON which is also gas, but in a very prolific area is currently priced at $0.26/BOE risked, so the SP would have to reach almost 1.4p just to be on the same multiple per BOE as CHAR was before drilling, which itself was significantly lower than just about all the other drills at the time. Potential at these levels looks massive.

CHAR was one of the cheapest drills I've seen in a long while on a risked BOE basis, reaching around $0.93/BOE in the run-up to Anchois-2. CLON which is also gas, but in a very prolific area is currently priced at $0.26/BOE risked, so the SP would have to reach almost 1.4p just to be on the same multiple per BOE as CHAR was before drilling, which itself was significantly lower than just about all the other drills at the time. Potential at these levels looks massive.

Well that 2.596M trade just gone through is definitely a £10K buy looking at the price 1 hour ago.

Rather than focusing on the SP, what price per BOE do you think is justified pre-drill? By comparison with other exploration drills this should multi-bag BEFORE drilling. And it's not even a wildcat.

Placee should just leave off for a bit and let it rip higher. This should go nanas from such a tiny valuation. Shooting themselves in the foot.

Where's the selling though? I can barely see any on the LSE and CLON isn't listed on Aquis or the Irish Stock Exchange. Less than $0.08/BOE now for Sasanof-1. Beyond daft.

That's a very good idea. From a slightly different angle, I've been expecting ECO to make a play for Sintana since they moved into Namibia last year, particularly as Charlestown Energy is a major investor in both companies.

Yes. Thanks for the update Harel. It's been pretty quiet here the last couple of weeks. I'm surprised we didn't see any reaction to the Barreleye-1 result last week as that discovery is quite close to Orinduik and a bigger step out than our targets.

While we wait for MOU operations to start, has anyone taken a look at CLON? They've just taken a 136.7 MMBOE 2U stake in Sasanof-1, an exploration well with 32% COS spudding imminently in the prolific Carnarvon Basin Australia. The well is directly adjacent to a discovery that is filled to spill and the project so far has made 15 discoveries out of 17 exploration wells. There are many other numerous large fields in the area including Australia's biggest, Janzs-Io. The crazy thing is CLON is priced at only $0.09/BOE unrisked, $0.29/BOE risked, which is exceptionally cheap for an exploration drill. DYOR

https://i.ibb.co/C2W0Qkx/CLON-Sasanof-Location.png
https://cdn.offshorewind.biz/wp-content/uploads/sites/6/2021/12/29173509/Sasanof-amplitudes-on-merged-3D-seismic-showing-Mentorc-Field-and-Western-Gas-Sasanof-Prospect-outline-Source-Western-Gas-1024x582.jpg
https://www.westerngas.com.au/equus-gas-project

Has anyone taken a look at CLON? They've just taken a 136.7 MMBOE 2U stake in Sasanof-1, an exploration well with 32% COS spudding imminently in the prolific Carnarvon Basin Australia. The well is directly adjacent to a discovery that is filled to spill and the project so far has made 15 discoveries out of 17 exploration wells. Sounds a lot like Stabroek. There are many other numerous large fields in the area including Australia's biggest, Janzs-Io. The crazy thing is CLON is priced at only $0.09/BOE unrisked, $0.29/BOE risked, which is exceptionally cheap for an exploration drill. DYOR

https://i.ibb.co/C2W0Qkx/CLON-Sasanof-Location.png
https://cdn.offshorewind.biz/wp-content/uploads/sites/6/2021/12/29173509/Sasanof-amplitudes-on-merged-3D-seismic-showing-Mentorc-Field-and-Western-Gas-Sasanof-Prospect-outline-Source-Western-Gas-1024x582.jpg
https://www.westerngas.com.au/equus-gas-project

All these up slope discoveries must be having a very positive read across for ECO's Orinduik targets.

COS increased from 29% to 56%.
https://oilnow.gy/featured/wei-1-chance-of-success-doubled-after-updated-results-from-kawa-1-cgx-frontera/

Priced at about $0.07/BOE now for Sasanof-1. LOL. Crazy cheap.

I'm struggling to remember an explorer that was on such a low valuation per BOE going into drilling as CLON is for Sasanof-1. This is orders of magnitude off where it should be at this stage in proceedings IMO.