Member Info for Proquo

Apologies for the typos

Just to remind everyone of the value on offer here, as it seems to keep getting lost in a sea of garbage - 100% WI in an oil producing field with OIP running inot the many millions; oil currently being extracted from a well which flowed UNSTIMULATED at one of the highest rates in the field; no debt: very welcome support from local authorities; company development seen as important by the Mongolian govt; early diversification into sustainable energy so very responsive to stated govt energy policies going forward; huge oil infrastructure investment (pipeline, refinery) by a govt determined to achieve energy indpendence as key part of the country's growth and development; further testing ongoing on drill results from an even bigger field with huge potential there; on good terms with neighbouring operator who has agrred to help with getting oil to market cheaply - discussions ongoing; as the income starts to develop nad increase the CEO has stated that borrowing - probably Reserves Based Lending will come into the picture for funding the company's growth; a CEO who has worked to create very good working relations with the local regulator; big investment put into facilities for local communities to win hearts and minds; Heron field development on a rinse and repeat, proven method of well rollout but also looking to embrace newer drill technologies to maximise reservoir output; moving into the first winter in the company's history where regular income will be coming in.

The current market cap is currently around 34 million.

Absolutely no evidence for the mythical single seller at all. Always has a whiff of the conspiracy theory about it. MM's, traders flipping the more likely explanation. If it has been a single seller these last few months they must have held a massive percentage of the sharesin issue. Where was the Tr1 if that was the case. The 'single seller' trope is an old method used to spreaqd a bit of fear ie somebody big must be in the know about some huge negative news etc. It's a bit old hat tbh. We're still up on the week, nothing priced and so much news to come over the next few months. We are still 'early November' in my book, certainly you wouldn't call the 8th November anything else. Expecing a nice bit of Fomo going into the weekend. Happy holder here (that's alliteration btw). Good luck all genuine holders, don't let the muckspreaders cover you in their sheet.

Sorry, forgot to mention the refinery coming onstream, (although that might be a while yet knowing the Mongolians as we do!). The other thing I forgot to mention is that the company will look at more modern methods of well design to absolutely drain that reservoir as efficiently as possible - horizontal, lateral wells for example.

The final question I ask myself with my investment here is; could the investment case be any better for a small oiler at this end of the market? And to be honest I can't see one; no debt, support of local authorities, producing oil in a field with 100% working interest, oil flows at a good rate without stimulation, diversification process underway in order to meet the stated requirements of the government's energy independence and sustainability policies, good relations with neighbouring operators, excellent PR campaign to win local 'hearts and minds' (Mike Buck's words), very experienced local rig operators, potential for RBL on good terms once income is proven up, a reliable, proven and basic model for field development, large proven reserves in place, infrastructure improvements well underway (pipeline), other large fields offering huge potential, large director buys and so on. Honestly if you can find another oiler with all this for a 30 mill Mcap then good luck.

Well, I tend to more conservative figures as a baseline. If the Heron field produces half the stated target of 9000bopd and the company manages to get 25 bucks a barrel from Mike Buck's working assumption of $75 a barrel gross going forward, that still works out at over three million dollars a month coming into the coffers. That seems to be a decent launching pad for all its other plans.

Tbh I'm not interested in the sp now. I'm holding here for at least the next three years. I have a very healthy average - below .025p - so risk/reward for me is excellent. Yes, it might go belly up for whatever reason, but that's a risk you have to take with any company at this end of the market. But if Mike Buck's vision for this company plays out to even half its extent then I should do well. I'd like to buy more at these levels but I'd then be breaking my own rules for investing. Discipline!

Agreed Investor. Like I said the truth of the selling is probably much more banal the the mysterious single seller theory regularly promulgated on here.

What's great is the company is opening up on many fronts so the winter newsflow should be relatively good. Don't forget Gobi is still there as a 'teaser'. RBL becoming more viable the more money we bank. Perhaps the Mongolians have a nice surprise up their sleeve especially since their vhange of attitude recently. Maybe now we've prove up Heron 1, we become a much more attractive farm-in proposition. DQE? Sunsteppe looking good going into 2025. And the winter only lasts about three and a half months. In fact the currently weather in eastern Mongolia is warmer than normal for this time of year which must be helping at Heron. Mike Buck already mentioned a plan B for getting oil to market so we'll be earning through the winter, come what may. We have never been in that position. Lots and lots to be postive about.

If the placing has flushed through, why can't the sells be coming from the same place all the buys came from earlier in the week? All this guff about a mysterious single 'seller' has a whiff of the conspiracy theory about it. A trader makes a margin of .002p on a 500,000 trade makes £1000 in a couple of days. Why can't it just be that? Rounded buys and sells? I always buy rounded numbers as its easier to manage a portfolio that way, and I'm sure many others are the same. The whole single seller thing always appears whereas the truth is probably much more banal.

I agree Thorn, although your numbers are off - I make 9000 bopd @ $50 a barrel $165 million bucks per year gross. 9000bopd at something as low as $10 a barrel is still around $33million a year! Costs, taxes, biscuits etc, those are still great metrics for this little outfit.

My view is, 'no news is good news' until I hear otherwise. Generally, in my experience, negative news re a well test tends to get reported earlier than a positive flow simply because there is more to do to correlate and double-check results for the latter. Interesting anyway. I'm actually more interested in where they can get H1 flow-rate to over time. I think I read a poster on here that it can't go beyond the 821bopd already reported as that was stated as the maximum rate during the intial testing period. Actually, I don't think that's right as I'm sure that 821 occurred without artificial lift ie stimulation. The unstimulated flow-rate was considered incredibly high for the basin, and Mike Buck stated clearly that there has been no deterioration in the integrity and quality of the well during the long hiatus. That well H1 alone has the potential to be totally transformational for the company if they are able to really get the thing singing. If H2 doesn't live up to expectations it just means that they haven't found a sweet spot. H1 clearly did hit the sweet spot.

Blimey it's less that two weeks since the RNS re start-up at Heron. It's still early November by my reckoning. What's the problem? The company has been excellent with meeting their own deadlines recently like any well-run outfit. I'm happy with next week as it should stimulate a bit of Fomo running in to the weekend. Monday is the 11th which still counts as early Novemeber in my book. It certainly couldn't be called mid-November then. Don't let others panic you into a mistake people. Btw the 11th should actually be a bank holiday imo, as it is in Belgium.

Again with respect Investor, you haven't made a point, you have just reiterated the same question over and over again. Why don't you answer your own question, or at least give us your version of why this happened as you seem to be obsessed with this question, whereas others are not so bothered by it?

No share such as this will ever go up when there is virtually no positive news coming out, no new investments, no deals, nada. Issuing endless reams of technical drill result data from LS just doesn't cut it. I'm assuming more and more that JV is waiting for LS to play out. It's like he's just disappeared.

Sorry Investor, I'm not being obtuse but what are you actually driving at? It sounds like you have a theory for previous spikes over and above sentiment driving the SP, as it did when it went to 35p+ on nothing basically. What's the point you are trying to make?

I'm not disagreeing with you Investor. My point is that companies like MATD can issue an RNS that absolutely blows the doors off - or the opposite - an no amount of chart interpretation can predict such an event. I mean MATD could announce tomorrow that they've had a buyout offer for 20pps from a completely hitherto unknown company looking to parachute into the Mongolian energy story. Unlikely, but I have seen such event-driven leaps elsewhere. 'Events, dear boy. Events.' Who said that?

I don't have the type of brain for charts tbh but if it works for you then great. In these small penny stocks it seems to me that they are sentiment driven as much as anything. Hence a drop today simply because people were expecting an RNS from Monday on and we're getting closer to week end. Plus no chart can account for a blockbuster/catastrophic RNS which is always a possibility in companies like this.

I'm particularly interested with what the Mongolians might do from here. I've said it before, their sudden desire to bend over backwards to get things moving, after years of stasis, signified something for me. There has to be a reason.

I don't get your point Investor. I agree that this should never have got to 35p + as it had no assets back then. The company has made great strides over the last year or so after a very rough ride in a very difficult place to do business. I give credit to Mike Buck for steering this company to the point it is now. I keep repeating that it is not risk-free - if it was then we would be way north of here. For me the risk is priced in now though.