Member Info for Rugby2015

IMO the quote of cash positive at 540 bopd at a price of $45 was a true snap shot at that time (October I believe). LK has always been very cost conscious and would not increase any costs unless they were affordable. End of year production 2017 was not as high as he wanted or as high as he expected due to problems that he explained st the time but he did achieve his aim of the company achieving a cash positive position by year end. There has since been a reduction in costs regarding Spain, not confirmed yet but NR salary may have dropped out now too but LK has also increased his manpower too. The cash flow positive concerns production and POO v costs and you can be damn sure LK has his eye on costs and will not commit the company to anything that is not affordable. POO at $70 a barrel must be a huge bonus to the company and hopefully this might enable him to speed up the implementation of some his plans but of course there are other things for him to consider as well as cash - the legal work surrounding the leases in the SWP is an obvious example. There are many positives to this Comoany and I see no negatives as most of us can clearly see the progress he has made quarter on quarter. LK says we are now in the phase of transformation so why would anybody doubt that? It’s only May, we can all make our own minds up on his progress when the end of Q2 Ooerational update is released but there could be plenty more news before then. I see no reason just yet, not to believe that he can achieve results towards the higher end of his year end production expectations - at least! I am hoping and wanting to be pleasantly surprised (however my private expectations are high so it won’t actually come as a surprise to me)

We’ve all had plenty of time to increase our holdings here and many of us have. When the SP rerates and at some point I firmly believe it will because the fundamentals are too strong for the market to ignore forever, investors quoting ‘I wish I had topped up sooner’ will get little sympathy. The bottom has been hard to call and like many others I bought on the way down but well above the current SP. We all know a positive RNS on either DT Ultravert or our Helium play will properly wake this share up but I think East Denver will play an important part too. Once flow rates are released and translated in to hard $ for no investment on HNR’s part I believe the market will finally see what a good deal Highlands have secured. Some well researched posters have published their figures and I don’t think they will be far wrong but at the moment it’s just assumptions (based on good research and historical figures I know) but when the revenue is a reality and hard dollar numbers are published as fact I think more investors will be attracted.here because they will see no downside but potentially huge upside. Just my thoughts for what they are worth.

PinWiz - got it, thanks for clarifying

PinWiz - wrong board?

What a difference a year makes! No strategy, no direction, regular dilution through placing, large debt, company teetering on extinction and talk of waterflood in years to come costing $20-30 million - nothing for investors to look forward to, it was just fingers crossed and hope! Now we have direction, a strategy, a road map, experienced BOD headed by a first class CEO in LK. Production up from 327 bopd to 650 bopd and riding with plans to reactivate/optimise/workover Wells at Icasos and Bonasse and water injection pilots ongoing that will boost production before year end. Plans in place for drilling SWP in Q1 2019 paid for by the company. Add to that WTI has risen from last Junes monthly low average of $45.18 to today’s current price of $71.58 and you can clearly see the big upturn in the companies prospects as can Schroeder’s who now iwn 14.23% of the company. The SP will rerate when it’s ready, I have no concerns and am staying the course - GLA!

Goudron is the cash cow that is funding the current water injection pilot schemes and allother work to improve production. Goudron is key and when LK achieves his aim of Giudron producing a steady rate of 1600-2000 bopd the company will have a great revenue stream to fund his other projects. Drilling SWP in Q1 2019 is an exciting prospect but let’s not wish our time away and enjoy this journey, goodness knows we’ve suffered enough to get here. Possibly additional acreage in Trinidad and M & A deal but we know the plan is ti increase production in Icacos and Bonasse and the water injection is continuing. Plenty to look forward to!

Apologies for typos in previous post, fat fingers and iPhone not a great combination!

Boom or bust what an absolute joke! There might be many of us disappointed with the current SP but I doubt there is anybody who imagines the company could go bust. LK has a tight hold on expenditure and only increases manpower when the con isn’t can’t sffird it and that’s why he will drill in Q1 in SWP from current funds/ positive cash flow. We have been cash flow positive since the end of the yesr with priduction at 550 bopd and recently over 600 bopd. We can estimate end of year production until the cows come home but just look at the revenue if he reaches his higher estimates in Giudron if 1500-2000 bopd. Say he drills 1 or 2 wells in SWP to prove up the reserves and then sells all the SWP - how much would we be worth then? Keep Goudron pumping out 2000 bopd and take the SWP cash along with ‘innovative technique’ to increase production to South America - BOOM!

Can anyone see how L2 is looking? Volume is well above average for this time of day, is it too early to suggest we have buyers following last weeks presentations from our BOD?

We’ve all had plenty of time to buy more shares and many of us have. Annoying not to buy at the bottom but in reality thats very hard to do. We have been told twice that DTU is at tipping point, it can’t remain there for long so am very hopeful of good news on that front soon. In the meantime let’s enjoy a rare blue day and let’s hope it’s one of many. FWIW I think the deal is a good one which will become more apparent to everyone given a bit of time

Lancygeo - I had to look them up and WTI actually peaked in Jan 18 but had been climbing since June 17. Figures below are the average monthly WTI prices from June 17: June $45.18, July $46.63, Aug $48.04, Sep $49.82, Oct $51.58, Nov $56.64, Dec $57.88, Jan $63.70, Feb $62.23, Mar $62.72. An approx. 30% rise in the last 6 months and although I don’t have the figures for April I’m confident they are higher than March at around $65. Definitely upward trend, long may it continue or at the very least stabilise at these levels. In his media interview around October time, the CFO’s explained the impact of WTI to the company’s bottom line. He was very excited then when WTI was only around $54pb!

is fluctuating daily but within a very healthy range of $67-$69 which seemed optimistic at the end of last year. The price may go higher, who knows, but April average price will be the 8th monthly average rise in a row let’s hope May can make it 9!

Thanks Joycopter!

Could someone provide a link for tonight’s hearing please. Many thanks!

Horseyhead - good response, I knew the information was all out there if people could be bothered to read it.

Intotheblue - where does the $4 a barrel come from? If today’s POO is say $70 then our 7.5% stake is worth $5.25.

OK let’s use $4 a barrel and look 12 months ahead and we have 24 wells producing. In fact let’s look 24 months ahead when optimal production is over and we are looking at a boring125 bopd from each well for the next 15 years. Let’s factor in a bit of down time too and say each well only produces on average 350 days of the year. So $4 x 125bopd x 24 wells x 350 days = $4.38 million each year for the next 15 years for no capital outlay. The first 2 years of optimal production will obviously create a much higher revenue stream and then if we do a boring rinse and repeat that becomes $8.76 and if in the same terms we profit $3.8milluon on top of striking a deal to keep a high % of the first 6 months of very high production. Am I missing something?

I have just scribbled out some revenue forecasts, they are too big to share LOL. Can someone help me with more accurate numbers. Are we saying the life of a well is 15-20 years. In its latter life it may produce on average only 125 bopd, happy with that? Would someone like to tell me what average yearly production numbers will look like. Happy to be laughed just to get this started but how about Year 1 - 700 bopd Year 2 - 400 year 3 - 250 and year 4 onwards 125 bopd . Can someone with more knowledge comment?

I’m with you Garmon, I think there is plenty of time for this to turn around

Siliv - post highly recommended, you have managed to capture what I have attempted to say on several occasions. In the last few months there have been several RNS’ and video updates to satisfy most shareholders thirst for information but some people are never happy. I do think if the SP was around 7p now there wouldn't be any whinging.. LK knows what he’s doing and I am happy for him to focus on the continued successful transformation of the company and happy to wait for his updates. If we keep long and strong and we will reap the rewards in the future - just like Schroeders! GLA