Member Info for Proquo

Not hedging my bets but I'm pretty sanguine about H2 coming in. It would be brilliant if we get 100bopd extra from it, and disappointing if not, no doubt about that, but the fantastic result at Gazelle takes us into new territory as a company on its own, whether H2 comes in or not. Great position to be in.

*life

Yes, the speed of the Gazelle test is the thing. They've basically opened it up, the thing has gushed to surface unexpectedly with no stimulation so they didn't need to test for flow any more than that, just shut her in and gather pressure data in order to connect her up safely. Job's a good 'un. Heron 2 they've fracked and dissolved the thing to within an inch of its to make the stubborn old bird come up with the goods. Hopefully!

Flying into the close.

Agree Gadgie. I asked the company specifically if they had complete confidence, and indeed trust, in DQE so it was no surprise when they made it clear in an update that DQE's work was being closely monitored. I took that comment as an answer to my query. I know that other investors had also put similar concerns to MB.

'Jesus!' is what Buck said when he saw Gazelle gushing!

I totally agree, Abzzba. That was my point - assuming the most pessimistic predictions and scenarios we would still be a viable, self-sustaining profit-making outfit with pretty much none of the massive potential upsides priced in. That's a great position for a little AIM oiler to be in. It was meant to be an optimistic post!

Agree that there is incredible potential upside here. Tremendous value at less than 1.5p per share. More prosaically, most analysts are putting a worst-case scenario on POO of around $52-$55 per barrel through 2026, with a ceiling about $62 per barrel. Taking the lowest figure of $52 for the year, our average take per barrel would be around $25 per barrel. Our current running costs are about £2.5 million or about $3.4million. By my reckoning, we need therefore to be producing around 380 barrels per day to be comfortable in the current given worst-case scenarios. We current have stable production of 150-160 barrels at Heron 1, meaning that we need to get a stable production of 230 bopd across H2 (poss/prob) and Gazelle 1. Given the 'enthusiasm' (Buck's word) with which Gazelle 1 flowed unstimulated, there's a good chance that production from there alone makes us self-sustaining. If H2 comes onstream that's pretty much our minimum profit margin going forward. Of course, I have not factored in the farm-out deal and any cash upfront from the deal, nor any windfall from Sunsteppe which look increasingly likely. Although I am assuming the withholding issue with the Chinese gets sorted.

So working from an absolutely base-case scenario, in a relatively low POO environment, the company looks on a sound debt-free footing going forward. That is a pretty good position for us to have reached now. Hence I reiterate that very few, if any, of the potential upsides are priced in yet.

MM'S walking it down in the absence of updates. As they do.

Yes, must be odds-on an update in the morning. Any one of six potentially incoming in short order. Ignore the trash.

I think we might Abzzba.

I think people have noted there's an imminent step-change in MATD's rate of progress, with multiple updates in a short space of time very likely. Moreover, there's a perception that Buck likes a Thursday RNS so I wonder if things will pick up even more through the day.

Bid 1.375p.

Agreed. And Brent ticking up. Trump-Putin cancelled (no surprise there) and crude inventories tightening a bit.

Lovely.

And Buck is not afraid to give up a licence if it's not right. He's done it before.

By my reckoning, any one of six RNS's could drop anytime.

Or it's just people realising that we are due quite a few updates in a short space of time?

Or the email has just come through confirming that the withholding problem has been resolved? Buck was pretty bullish about a resolution not being far away.

After hours RNS or 7am tomo?