Member Info for Proquo

H2 was a critical well up until Gazelle came good a few weeks ago. I accept that it's less important now but since 2024 the focus was on H2 to improve the company's short-term finances and to strengthen our negotiating position in partnering discussions. The fact remains, however, that the company still needs every possible cent of income it can muster and it cannot be acceptable to take a whole year to get around to re-testing a well when we only had one well producing any oil at the time. So yes, H2 was indeed a critical well.

I don't agree with much of what you say Hamm but I do agree that Buck needs to account for how time is spent and managed - the most glaring discrepancy is the work around Heron 2; the results of the first testing of H2 were announced in November 2024, informing us of the 30bopd disappointing flow-rate and assuring investors that further work to get the thing flowing was already being planned for the 2025 work programme. However, no work actually started at H2 for another YEAR, give or take a few weeks and now it's possible we'll have to wait until Spring 2026 to get a definitive answer as they've effectively run out time due to the weather. This seems to me unacceptable. It's pointless writing to the company as you just get PR blandishments by way of reply. I will insist on pressing Buck on this at the AGM and I hope others will do the same.

Taking a whole year to get going again on a critical well for the company smacks of either incompetence, chaos behind the scenes, or downright laziness in only seeming to work for a few months in a year, or all three.

In many things I think Buck has got things right, but this particular issue and other things like Jerry, the technical manager being in London on holiday right in the middle of the Mongolian season, have really irked me for some time, and I'm looking for answers and accountability from Buck.

Absolutely no idea why genuine investors engage and interact with what are clearly position position posting stockbashers. They'll say anything to goad posters into replying as they need to create a dialogue to affect the general atmosphere and sentiment around a board. If you respond to their goading hen you're doing exactly what they want. Put them in the trash boxes, ignore and forget. Come on people, wake up!

Buck said himself that it could become quite quickly a very lucrative part of the business and he's really not a man given to hyperbole. He's also mentioned several times how hard the Mongolian's are pushing on renewables and how rapidly the sector is developing, with money pouring into it. He has seemed genuinely surprised and, dare I say, excited?

Anyway off out for a walk in the beautiful Burgundian countryside whilst the weather is clear. Bonne journée!

Finally, I'm not ruling out partnering as the preferred way forward and it will undoubtedly happen one day. My point is that we could go it alone for now, get a lot closer to refinery start-up and the partner from a much stronger position. Long-term as opposed to short-term thinking.

And as I said, Petrovis were prepared to lend us money when we had no income and have since increased their stake in the company. Why wouldn't they lend to us again once we have disposable income for a highly accretive works programme?

Nor is anyone taking into account how much Buck has streamlined this company to reduce running costs. Our income as of now covers the company's costs and that's before back-payment of monies owed, full payment for oil going forward at some point, the possible addition of an extra well or two by May/June, Gazelle producing more, and the distinct possibility of Sunsteppe securing money for one of its projects or more.

Hamm, not necessarily as RBL could be available with sustainable income from 3-4 wells. Also the Mongolians might step up the support with the refinery start-up looming, Petrovis are still there for a soft-loan - after all they lent us money when we had no income whatsoever! Our running costs are clearly covered, the refinery and pipeline is getting ever closer, Sunsteppe is looking very promising. I'm just saying there's a scenario where could go it alone and it works out. Not the preferred one but, as I said previously, I'd prefer no deal rather than a bad deal where we give too much away.

It clearly makes the most sense to partner with an existing Chinese entity, hence Buck's stated preference for such. Having said that, no deal is better than a bad deal and the increase in production means that a poor deal is much less likely. However, I can see a scenario where we eventually go it alone for now, tick over until the refinery is up and running, keep progressing Sunsteppe and then JV when we are in a much stronger position. As I said previously, I think it's more important to get the payments issue resolved atm. By next May we could easily have three, possibly four, wells pumping at a stabilised rate with full income from each with an income of something like 6 million and greatly increased proven reserves, and some money in the pipeline from Sunsteppe. So in six months time we could be utterly transformed as a company, able to secure RBL and still holding 100% of everything.

Not a scenario for traders and short-termers but not beyond the bounds of what's possible.

Brent holding up pretty well atm.

Weird that more than doubling production is somehow being spun as a problem. People have been arguing that Gazelle was priced in before yesterday. If this is so, then it has to be agreed that the problems with the Chinese wrt to payments has also been priced in given that it has been going on for over a year. It has been a long-term drag on the sp. Buck simply shouldn't have mentioned it in the Gazelle update, and certainly not used the word 'disappointing'. There was nothing new wrt the situation with PC. So, in effect, the negs' arguments that the SP dropped by over 20% purely on the inconclusive news regarding H2 hence a ridiculous overreaction yesterday. It was great news but Buck diluted the positive effects with unnecessary use of downbeat language.

Also we didn't get to Gobi so the cash earmarked for that is still in the building society. If Buck can get the Chinese to play fair finally and wrest the outstanding monies back in a lump sum, plus full payment of invoices going forward then I'm confident that the market will respond very positively. Atm it's a big drag on the sp imo. I'm going to get slapped for saying this but I think it's currently more important than getting the farm-out over the line.

The 200 bopd from Gazelle makes us much more secure and independent. PoO is looking a bit depressed for the foreseeable but it's not hard to imagine a world with PoO at 90-100 bucks again - most analysts predict an upward trend late 2026. Add that increase to gradually opening the taps on Gazelle 1, hopefully H2 comes onstream early 2026 along with a return from Gobi and there forms a scenario for us to go it alone especially if Sunsteppe delivers some premia and the refinery comes in on time in 2027. That's a scenario for the patient LTH but it's not out of the question if you take the long view as I am.

So much so that I took another 500k shares yesterday. I've averaged up a tick but I can live with that.

Point taken. Thanks

I disagree on that Hamm. I think the resolving the 30% withholding issue and getting back monies owed to the tune of multiple hundreds of thousands would take the brakes off here.

Buck simply has to resolve the withholding issue. It is clearly a drag on sentiment and must impact the confidence of potential partners. I would hope that Buck has fleshed out the Plan B for getting oil away. The Chinese have messed us about for over a year on this invented and spurious concern. I wonder if he's also put a shot across DQE's bows.

Yes. I think this has cracking potential but one to keep an eye on for now. I know the 5 mill loan helps but that won't last that long. A big game-changer is if it becomes clear this EIFO loan is just the beginning of long-term support for a strategically important company. Or possibly aJV with a bigger entity once the initial development proves the viability of concept.

Ive had the same thought myself, Investor. If Buck does talk to Malcy he needs to address this issue directly rather than just spouting blandishments about making progress' etc. It has been going on for over a year now. I also agree with those who criticise the wording and construction of the RNS yesterday - the main point should have been that we've doubled our output butthewholething ended on a downbeat note withheld word 'disappointing' being used. It's so basic. He should have screamed from the rooftops about Gazelle's success on its own and we just didn't need info on the withholding tax as nothing has changed since the last time- literally no change so why include it in what should've been a very upbeat update. So frustrating and so basic.

Totally agree about Matd's lack of debt. All our increasing income comes to the company's coffers rather than being hived off to service a large debt. As tough as the last raise was, it's done the job in upping our income. I was thinking things through last night after what was a pretty discouraging day here - I'm happy with where the company is now, we have income to pay our way now even if oil drops a bit but our biggest problem is the trying to do business with the Chinese who are as slippery as a bag of eels; I could be almost accept us ticking over for another eighteen months or so staying debt-free until the refinery starts up and then tell the Chinese to stick the arrangement where the sun doesn't shine. Then go for a bigger, more aggressive farm-out as a much more attractive proposition minus the perfidious Chinese. In the meantime allow Sunsteppeto grow, hopefully bringing in increasing revenue and projects. It's clear that its the whole withholding thing that's suppressing the sp and encouraging traders to pile in and out constantly. It's been an issue for over a year now and is a massive drag on the company's progress without a doubt and of course it's a deliberate ploy.