Member Info for Shedulike

Well they're trying hard on Twitter. To be honest I'm very sceptical about a bid coming in for EUZ as things stand because valuing the company accurately is impossible until we know what the enlarged mining district actually is and what it might hold.

CHRI5P just a thought, I had been assuming that Denarius would progress one drill at a time but with the funding there is nothing to stop them sticking three rigs up there if they can get them. That might mean something like six weeks drilling, assays have generally been about a month and JORC reports just over a month. Perhaps it isn't unfeasible for the DD drills to go into the PEA but in any case as mentioned the other day the completed work since 2020 means the PEA will be greatly enhanced. Just for starters the indicated resource has almost doubled going from 3.8 to 7Mt. I guess the CAPEX will have soared along with everything else but against that they reckon the ore sorting means they will plan on a smaller concentrator plant so maybe swings and roundabouts.

I was told the DD drills are not just marking our homework as it were but will be designed to grow the resource. Basically both parties will benefit from them (assuming they hit mineralisation). My question would be whether they can be completed and the technical report work done in time for the PEA and MLA.

CHRI5P - Denarius were going to complete their due diligence drills before updating the PEA. Unless they have started I can't see how they can complete the holes, assay and JORC for the PEA all in time for the MLA deadline in July. Still as you say the new PEA will certainly be more impressive than the 2020 version even without the DD drills, given all that has happened since. Off the top of my head two resource upgrades, completed metallurgy, completed hydrology, additional geotech plus the impact of ore sorting.

Twitter frenzy occurring - orchestrated pump, or something in it this time?

Haha very good Patpill. Not sure about 1) though. Did notice some livestock on Google Earth so perhaps a heavy sow is blocking the site entrance, preventing access for essential testing equipment.

Possibly Pisc, also wondered if the Nomad may want rates fully stabilised before announcing. Someone mentioned a Nomad change the other day, but I can't find anything in the RNS's. Anybody know how long we've had Spark Advisory Partners?

Yes it should reaffirm their credibility. I'd also like to see Aris participating as that should indirectly be an endorsement for Toral. They were likely one of the standby guarantors for the RI. Bit of interest in EUZ today I see!

Well I found an article about a 15000 metre horizontal drill so it's possible. If what they're finding is incentivising them to extend this section then perhaps it's a positive?

I might have caused some of this confusion over the 500m. WR-B01 ST has been drilled 500m away from JKT-01Z but also in a presentation somewhere it is mentioned that the horizontal section was also 500m at JKT-01Z. It's supposed to be the same well design so I would have thought they were planning on a similar length with WR-B01 ST. If they are still drilling that would mean they have been on the horizontal section for over a month. Comparing the timescales they had finished testing at JKT-01Z by now and were on full production so the facts are that WR-B01 ST is taking a lot longer, why that is the case is more open to speculation.

Have to agree, if you provide regular interesting Tweets from the site all well and good but if they suddenly stop for the best part of a month (coupled with no regulated announcements) then questions will inevitably be asked. Bit naive from the Company and if this forum is anything to go by some are getting spooked. It might mean absolutely nothing but they should really have updated the market by now, if something is going badly so be it, everyone knows that nothing is nailed on with O&G exploration and will be prepared for it. As things stand though all outcomes are still in play, frustrating though.

That is one of the things that I find encouraging. Why accelerate Project 1 development if the current well is casting doubt over the concept? IMO wouldn't they have to go back to an appraisal well to test an alternative approach to production if that was the case. Undoubtedly they have taken the opportunity to feather their own nests in the process but wasn't it ever thus.

Scrodingerscat I don't disagree with any of your logic but had a slightly different take, assuming they have data to indicate what sort of result to expect (which seems likely after all this time) and looking at the market. 1. It's likely to be a complete failure but there hasn't been a leak, 2. It's likely to be a roaring success but there hasn't been a leak 3. It's going to contribute to our production but far from knocking the ball out of the park. Knowing that O&G is notoriously leaky I'm leaning towards No. 3. Also partly because of this: "The Loan Facility will allow Block to accelerate its Project I development programme, with the aim of increasing near-term cashflows, without the need for dilutive financing". If WR-B01st was a failure to the extent that it shakes confidence in the concept and well designs of Project I would they be concentrating the loan in this area? Therefore I don't think the loan suggests that WR-B01st won't produce but perhaps unlikely to be a complete game changer on revenues hence the Directors taking the opportunity to make a very safe and self serving loan to the company. Disagreement more than welcome if it comes with a little thought :)

That's how I would see it also. The reason you have to sell and buy back into the ISA is because it is a tax wrapper so any profits........ (remember those?)....... on the stock outside the ISA becomes exposed to CGTax.

Sorry missed that - I see what you're getting at now. One thing is definite - it's taking a lot longer than JKT-01Z.

This might be of interest:
https://www.slb.com/-/media/files/oilfield-review/defining-directional-drilling.ashx

Chesh also no expert but it's easy to see that the landing point is at the end of the curved section. Anything afterwards will be the horizontal section. So according to Twitter we will have been on the horizontal section since the 12th Jan. In fact they say as much I've just noticed:
@BlockEnergyplc
·Jan 13
??WR-B01-ST: Drilling horizontal section

So as discussed before the landing point was Tweeted on 12th Jan which means they would have been over a month just on the horizontal section (assuming they are still drilling).

Thanks Chesh - something soon on WR-B01Za?..... surely they've completed and started testing by now.

I'll be a lot more relaxed when we know that the current well flows but overall I like the strategy here. Projects I & II seem to be relatively low risk re-developments which are steadily moving the ball forward (as I said fingers crossed on WR-B01ZaST), stabilising the finances and hopefully we're not too far from cashflows which could put an end to the endemic dilution, although I suppose the alternative is depleting cash until a major placing is required, neither are particularly palatable for us. Assuming I & II continue to incrementally steady the ship the major running room for the mcap and sp looks for me to be in III & IV which could be huge. I really want them to hit the ground hard soon on III as gas looks the safer hydrocarbon moving forward being the obvious bridge fuel. Rather cleverly IV appears to look after itself so hopefully GOGL get cracking on that asap. Finally it seems obligatory to curse the board in every post if you don't want to be accused of being infatuated with PH, generally I don't bother as I try not to get agitated by factors beyond my control but if it helps I agree that it's obvious that the salaries are excessive and greedy given the company's performance from a shareholder point of view.