Member Info for Shedulike

Thanks pardariff - I do remember a lot of excitement around this stock back then, it must have been one of the most talked about on here in 2019, maybe he just raised expectations too high and never really recovered his reputation. I do like this relatively low risk strategy on projects I & II, hopefully if this drill comes good we'll be well placed to go for higher risk / reward on III & IV.

I hear a lot about PH's credibility on here but nothing specific. I remember long before I was invested there was an issue with declared flow rates at one of the early wells (WR16a), looking back the actual production turned out to be a lot lower due to a smaller choke size for production rather than that used in testing. I guess that could be seen as misleading but can any LTH's tell me what else he has done to be so unpopular? - genuine question not trying to put anyone on the spot.

Bit of a concern to see the 1m sell and slightly relieved not to see an after hours RNS. It will certainly be a blow to Project 1 if WR-B01 ST doesn't flow but the multi facetted strategy means all our eggs aren't in one basket, thankfully we're not in the 'do or die' situation that so often befalls AIM O&G explorers. Still, there's no getting away from the fact that we could really do with some meaningful production from this hole and I guess cautious holders will get increasingly jumpy the longer we wait for these preliminary flow rates.

Sorry CHRI5P you're quite right.

I do like the Tweets but I guess the problem is that if they are interpreted as a sign of confidence then a lack of posts from the field might be received negatively. I have no idea who calls who in order to get an image from the site but if it's a case of someone connected to investor relations calling a drilling engineer to ask for a piccy during a critical phase of drilling they might well get short shrift! Certainly this well seems to be taking longer than JKT-01Z, could be a good thing, could be bad, nothing is nailed on but I'm sure we all accept that.

Fair enough Chesh though I'll be a lot happier when we know we have a producing well with WR-B01. Success would put us on a stable footing to pursue the more ambitious projects III & IV which are huge.

I think it closed yesterday CHRI5P, but yes the 'standby guarantors' have basically underwritten it. I suspect Aris will be amongst them, perhaps we'll find out later today. Anyway one's thing for sure if Denarius want their due diligence drills to add to the new PEA for the MLA they need to crack on. Hopefully we'll get details of their work programme soon.

Rock I'm hopeful that there is decent COS with the current well, particularly as they're building on what was learnt at JKT-01Z. If it does produce then it I'll be looking for levels that negate the need to part-pay salaries in stock. Preserving cash is one thing but at some point the cash deployed needs to free us from that business model IMO.

If you follow the timescales of JKT-01Z they gave initial production rates on 24th Jan. The current well kicked off three days earlier (compared to JKT in Dec 21) and while I'm sure no two wells progress identically the design was described as analogous so I would guess that last years events can provide some guidance unless I'm missing something?

Because we are now in the 'Option Agreement' period Bricks. They get the 51% when they fulfil their commitments of the Option Agreement, only then can they exercise Option 1 for 51%.
"Denarius will advance the US$4,000,000 by way of a loan (the "Loan") to EMI (the "First Option Expenditure") and on satisfaction of all of the conditions of the First Option, Denarius shall be entitled to capitalise the Loan up to the amount of the First Option Expenditure for the issue to it of 51 per cent. of the shares in EMI. In the event that the First Option is not exercised, Denarius shall be required to assign the loan to Europa Metals for US$1".
Similarly the board of EMI only becomes 3-1 on the exercising of Option 1"
"On exercise of the First Option, the parties shall also enter into a joint venture agreement (the "JV Agreement") and a shareholders' agreement (the "Shareholders' Agreement"). The JV Agreement sets out the terms of the appointment of the management committee to be established (the "Management Committee") to determine the overall policies, objectives, procedures and actions in respect of the joint venture as regards its business including the Toral Project (the "Joint Venture"). The Management Committee shall initially consist of three representatives appointed by Denarius and one representative appointed by the Company. The board of directors of EMI shall reflect the decisions of the Management Committee in all respects".
- This isn't the deal I had envisaged at the top end of my expectations but I think MC, EK & DS have been somewhat cannier in negotiating this than we initially gave them credit for. I think we hear this week if Denarius' RI has been successful and it will be interesting to see who's backed them, hopefully with the deal on a firmer financial footing sentiment will start turning.

Chesh I'm no expert but the 'kick off point' is the start of the curve and the 'landing point' is the end of the curve or start of the horizontal section. We reached the landing point on 12th Jan (see Twitter) so are on the 7th day in the horizontal section as far as I can tell. Can't find a diagram showing this on a Block well but here is an illustration from Brookside Energy on Proactive.
https://www.*********investors.com/companies/news/1000417/brookside-energy-drilling-ahead-in-horizontal-section-at-wolf-pack-well-1000417.html

Ah yes Chesh as Cpt Mainwaring would say - I wondered who'd be the first to spot that! :) I do remember in the technical report before JKT-01Z Paul Jeffs mentioned 500m for the horizontal section but they ended up nearer 600 so I guess it depends on the data coming back. Just a coincidence that the wells are also 500m apart, hope they've considered the next obvious question :)

So 7th day on the horizontal section, anyone got an idea of how long it might take to complete the 500m? I note that JKT-01Z had 600m and we got initial flow rates on 24th Jan 22. The current well WR-B01 ST started a few days earlier so it might be reasonable to expect something imminently? Not sure how the TD's compare but the rock encountered must be the the same being on the same formation.

Hang on... does that mean that no confidence is better than low confidence?

Mm's as established yesterday we will actually have an updated PEA plus a MLA lodged but until Denarius complete the $4m spending commitment we will continue to own 100% of EMI.

Ah thanks, so give or take they should be completing the horizontal section soon.

Oh I see CHRI5P, of course the work completed up to the MLA won't soak up the $4m. It will be interesting to find out what their targets will be, best bet is extending to the east of the high grade IMO prior to MLA and perhaps the long awaited 1000m + afterwards? Certainly becoming apparent just what a huge amount Denarius have to do before getting their 51%.

They gave initial flow rates on JKT-01Z on 24th Jan 22. I'm sure I read somewhere that WR-B01Za is analogous (can't find it now of course) so the progress of that well should provide some rough guidance as WR-B01Za started a few days earlier in Dec 22 compared to JKT-01Z in Dec 21.

Another thing - I don't understand why Option 1 needed a three year period when the MLA has to be in by Jul this year. The MLA requires a new PEA (another of the conditions) so surely along with Denarius' due diligence drilling most of their Option 1 work will be completed comfortably this year. Maybe it's just a very cautious contingency period?
Ps. EUZ are 100% owners of EMI until Denarius meet their Option 1 conditions.

Mm's now you're confusing me! The MLA is one of the conditions of Option 1 which will result in them getting 51%. If Option 2 is executed they acquire an additional 29% leaving us with 20%.