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If anyone can provide insights on the impact of net pay on flow rates that would be much appreciated. Clearly the LS3 sands are high quality and 8 metre column I’d not immaterial. I’d be keen to understand the correlation between net pay and flow rates. Putting bankable reserves to one side it would be interesting to understand why perforating 10ft as a mariposa would not yield similar flow rates ? Thanks in advance.

I’m wondering if somebody more knowledgeable could she some light on the sol RNS. We know mariposa encountered 120ft net pay and indico 230ft. Is it significant that 10ft of net pay was attributed to LS1 une formation? Also we know that mariposa is producing from 10ft perforations near the top of the 120ft oil column. Could SOL flow rates be similar but reserves attributed lower? Interested to get the take of anybody with a technical understanding of correlation between flow rates vs oil column size. Cheers

NILES - OXYs $19.1m (upfront I might add) payment means we have retained 50% of the licence and have a committed strategic partner that can fund 50% of capex with no issues. It also validates our retained 50% interest has a value prior to any exploration upside of $19.1m and the most of us are just happy to see the back of VETRA and their feet dragging.

350BCF x $8 = $2.8billion x 0.10 (eg 10% GOIP value) = $280m = 25p share. What can JP get for lead inventory to be determined. Under 30p = we drill on. One material discovery based on size of prize changes negotiating hand forever. 2 to 3 interested buyer and 50p is achievable IMO.

Leem cash burn is an issue agreed. However with OGIF onboard I can’t see any issue raising £25-30m other than dilution to existing shareholders. However dilution when each drill is aiming to add 1-2TCF is neither here nor there - the fugures are huge. It comes down to whether you believe that in a vast licence area the te5 discovery is a one off anomaly. I’m not happy with the BOD or but also not of this opinion this is an isolated discovery. . The acreage is prospective of that I have no doubt but predicting the porosity and tightness of the sands through seismic appears impossible. All to play for.

Soundingoff. I was as disappointed or more than most and am infuriated with the te10 testing phase, comms pre result and JJ in particular. However the current SP has zero correlation to the LE price sought by the BOD. I may be mad but I will be loading up if sentiment drags this under 10p. GLA

JP has been clear on this already but the pause to market the asset must have been tempered with an OIEO figure to manage expectations prior to access to the data room. We surely cannot be sat at the negotiation table without having vetted suitors as the luxury of time and a drawn out sale process, given our market cap and cash burn which impacts te11 funding. A prospective buyer will have to enter the process in the knowledge we have set a date for any offer and will drill the Palaeozoic which despite a lower COS changes the value prop forever if successful. Post development costs for the Horst a buyer will want a sure thing underpinned by Fundamental of the GSA mad GOIP in place. HOWEVER JP will want a value assigned to the prospect inventory and market the strategic value of the in country relationships and we low threshold for commerciality as a risk mitigator. REMEMBER the low threshold for commerciality at TE10 was due to economies of scale from a tie back ...: Any offer under 30p = DRILL ON

There is no way that Tendrara will be sold for a song. Given the strong ties to OGIF raising £25-30m to drill on and poke the paleazoic is option B. Any suitor at the table will know that any success will materially change the value prop forever. A prospective suitor will have to balance the risk/reward which we have borne over the last drill campaign. A different outcome across the next 2 wells leaves the land grab looking like a £1b acquisition vs a £250-350m bet now underpinned by te5 production. On reflection today’s valuation looks laughable to me. All IMO

SG47 - I assume sound have communicated An offers over valuation in order to filter time wasters and any suitors at the table that lack the imagination to see the upside from the exploration lead inventory beyond the te-5 Horst. Toxic time wasters need not apply etc.

Spot on Davey. I and many shareholders would be unable to square any recommendation of a sale for under £250m cash and clear terms associated to contingency payments per TCF. I would rather raise £25m and suffer a 25% dilution of my holding based on the upside from any material discovery from the larger paleazoic targets. Let’s be real here any buyer will understand that with OGIF onboard we should easily raise the funds for a 3 drill programme at 7-8p. If any material discovery emerges the value prop will have changed forever. 25p + future milestone payments is a very real near term outcome IMO.

JTD - with SOL nearing TD I am wondering what the impact of a dry well would be on the SP. I don’t think we can go any lower based on production guidance but I’ve been wrong before. Should SOL be a discovery of much sought after light 36 API crude then a buyout in my opinion is imminent. I will be filling my boots if the reaction is muted as the indico appraisal results could blow the lid off. CPO-5 could soon make out market cap look ridiculous but the BOD will need to stop hoarding cash to keep up with ONGCs plans. Posters can be as negative as they like but onshore wells that flow 4- 5k BOPD are as good as it gets. Based on the tenders in public domain I think an aggressive 2-3 rig programme will be announced in early 2020 but pipeline and groundwork’s commitments cannot be covered by FCF and a new outlook from the BOD on material growth and debt financing is needed. All in all an exciting year ahead.

Big smoke I don’t think anything can be read into SOL-1 result yet as the well was spud on the 11th May. From memory a return to indico post Calao result was communicated but in reality ONGC are in the driving seat. I think we are 10 days away from any announcement on sol

Sol spud on 11th May - I’d expect update by end of June. PLAT 26 still no update? BOD need to get a grip on investor relations.

SHEDULIKE. I noted post te10 results that all historical twitter posts and many videos have been deleted. Perhaps this is part of cleaning up the noise for the corporate eyes about to enter the data room. I suspect though that this is more about removing the embarrassing content on the public domain. JP must cringe watching his rampathons , I know I do.

The well is drilling ahead at 7,800ft with a target depth of 9350ft. . This was the update pre AGM. RESULTS! The BOD don’t do themselves any favours - how long does it take to drill 1550ft and test? I am not want to make short term investment decisions but something here is starting to not feel right. Had it not been for the OXY farm in I would have lost patience by now. JW needs to have a serious think about investor relations.

ZIGGY ZAG - how about communicating to JP that he constantly used £1.50 per TCF in various presentations and conference calls as a ballpark of value range with no context of working interest or GOIP vs recoverable resources. Then suddenly changes the goalposts and tells private investors they have misunderstood. It is clear that HE and his TEAM were purposefully ambiguous. Not sure how this can be denied or how JJ can claim the recent report (NOT CPR!) is for the benefit of PIs who are confused on value metrics.

Gary - the historical mismanagement and missed timelines are the issue as the foundation of platanillo has not been built on. It’s clear that the market wants more meat on the bone before pricing in any upside - especially at CPO-5. If and it’s a big IF SOL is a discovery with the same flow rates and light oil as indico then I expect a sea change. Following SOL with 2 appraisal wells and CPO5 could be at 25k BOPD by end of 2019. Not implausible of sol is a discovery. From their cue a multi rig campaign in 2020. I do see where your coming from but the flow rates at CPO5 are world class and any major would be interested. Not many onshore discoveries in recent times that flow 5000bopd plus....

Hi Nile’s. We all have our own personal boohoo story so I can sympathise. On reflection despite the current depressed SP all I’m trying to highlight is that CPO5 in its own right could well be valued way north of the current Mcap. Current SP in my opinion is a gift.

Niles 24p is just not going to cut it. CPO-5 value Appears to be thrown in for nothing at current SP. onshore wells with flow rate in excess of 3000bopd are not to be sniffed at. I’m convinced that if SOL is a success a buyout at 35-50p is very realistic though.

“The company recently spud the Platanillo-26 infill well targeting a potentially undrained area of the Platanillo field identified on seismic. The well is drilling ahead at 7,800ft with a target depth of 9,350ft.” This was announced in the pre AGM statement on the 14th May. Surely they would have reached TD between 18th to 20th. I expect a Monday RNS - anyone else concur?