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Hi Jack, very valid points you’ve made, I guess the key difference is that field being in the Middle East where there is a lot less bureaucracy, easier to drill, easier to plant a pipeline to deliver oil/gas to a ready made processing facility, techs will be a fraction of the price (foreign labour), no nuisance council, less HSE to deal with etc. All very valid points you raise but subtle differences in my opinion.

I look forward to seeing how this pans out regardless of whether I’m in it or not, I do worry that taking this to production will be biting off more than they can chew though.

ATB
TL

Jack, I have to respectfully (and I do mean respectfully as I have no desire to get into a heated debate) disagree with you on this one and this is why; Production drill costs if exploration drill costs are £24m then I would assume (and this is the part I don't know about) would be around double that. FEED (front end engineering design) on a project that has this potential you will be looking at around £20m (drill, production, operation, maintenance will all want a chunk of that) you will need to contract a service company, costs will spiral on this as they inevitably do (looks at the Laggan-Toremore onshore build) but at a bare minimum you will require electrical, process, instrument, and mechanical engineers, you will also need techs of the same disciplines for the build, pre-commissioning and commissioning I'd conservatively estimate that this would be around £100m as you will need all disciplines (possibly 10s of each) to be working 24hrs a day at 12hr shifts (the cost to operators is ~£1500-2000 a day pp per discipline, and this will take 18-24months to build, best guess). If a pipeline is required that will need to be trenched I would estimate £10m for this depending on length. the processing plant materials value would be around £250m then there is the build cost, structural engineers (the most expensive of disciplines) will be required for the design and build, that alone could be 10s of millions. You will need an excellent PR company and consultants to handle the news flow and communications with local councils and businesses.

I'm barely scratching the surface of the requirements but you can see how this adds up very quickly, when I was at the AGM Stephen acknowledged that the cost to production would be around £300m when I quizzed him on this and if I'm being honest his value is very conservative. Of course, you are right in saying it can be taken off by truck but that has it's own implications depending on flow rates and then you would be paying an external company to process the oil by the barrel significantly increase the cost of uplift.

TL

I'm still holding a huge amount of this, I read the results yesterday and the word of the day for me was "average" the thing is though if I found this share yesterday with those results I would buy it at this price. It is potentially undervalued, the progress is slow but all it takes is for one of these products to catch on with one big player and the price skyrockets... I'm sick of them marking up the value of the companies it owns, however, I suspect this is a necessity for them to do to raise capital in accordance with the sales (regardless of how minimal they are) it is producing.

still a strong hold for me, the ups and downs of this share although they look like they are big are fairly aesthetic as they seem to just move the spread... I'll give it till next year

Just remember the oil is worth nothing if you can’t afford to get it out. There is money to be made here and a lot of it, just not hundreds of millions to RBD, but I could be very wrong of course. Anyway I think I’ve commented enough until results come out, GLA

Krull, That’s the game of exploration, you get a fraction of what it’s worth, imagine its worth £700m and the operator has to spend £500m to get it to production, do you not think they deserve the lions share of what it’s worth? In this scenario RBD would get about £50m I imagine which is 100% ROI or there abouts (very good return imo)

Albino74, completely understand where you’re coming from with regards to raising capital but ask yourself this if you were Warren Buffett, would you lend Bill and Ben the bankers £500m to develop an oil field? It is of course possible they sell 90% of this and retain 10% of whatever profits there are to be had.

Krull, it’s not as simple as that, you either need a pipeline to the nearest receiving terminal or you need to build a receiving terminal for processing what you are taking out of the ground both options cost far too much to make placing along the way a viable option all you would do is see the share price remain stagnant but the mkt cap grow and it’s not really in reabolds mandate to become an operator, you need all sort of certification that just isn’t conceivable for these guys imo. To give you an idea you would need to see the share price rise to about a quid to make that a conceivable notion which would value the company about £6.5bn you would then be looking to issue another 500,000,000 shares to complete the works presuming no hiccups and there are always hiccups.

Best case scenario here once flow testing is complete is a monumental spike like what BLOE had when it went to about 17p and all the smart money exited, have a look at it now if you wonder why I say the smart money exited.

TL

Krull, another question I asked at the AGM albeit in a slightly different fashion, the true fact is that Reabold cannot afford to develop a field like this. I’m a process control engineer, I’ve worked in and out of O&G for about 10 years both green and brownfield so I have a small idea of what I’m talking about on the process side (not the drilling side) and to develop this into production you would be looking at about ~£500m if it’s as big as it appears to be. You might think that is a ludicrous amount but if you take the MAR project that was projected to cost about £1bn it ended up being closer to £3bn (offshore project) this would be the same scale but as it’s onshore a lot less. How much dilution would shareholders really want to see for these two clowns to prove they can get something over the line? Trust me on this selling this ugly stepchild off is the only way any of us will see profit in this share.

I refer to it as the ugly stepchild because this started off with such promise but has required far too much dilution if you ask me. If you got in after the last £24m placing then this probably still looks like a tiger on a leash

Agreed Rubey, which is where a lot of the hostility seems to be coming from that is aimed at yourself. The mind changing that goes on with S & S is a big concern for me, I think that when they announce the result of this well test you will see this fly to roughly the 3p mark, I will sell as I’ve lost trust in them now.

Hi Rubey,

Hate to weigh in on this but I went to the last AGM that was held in person (I think it was October last year now) and Stephen did say the plan was to prove it up with this coming well test and then sell.

All the best,
TL

Nice!

I suspect that this could be classed as supporting the energy industry, therefore they would be considered key workers and not necessarily have to isolate... but I've lost track of this now

good summary there Max... for me, once they prove they can sell and sell big (with one product) then this will fly.

I wouldn't be surprised to see this drop a little tomorrow, all the confidence in the world won't prop the share price up without proper solid new, however, I think the people who sell out will do so knowing they will be back in the next month or two. It's a strong hold for me still and as I said earlier they've calmed my nerves. We won't see any of the major shareholders dumping off the back of what was said today and I think that really is the best news of today.

Philbatch, the simple and short answer is no. Not much was said but a lot was reinforced, my nerves have been calmed.

I was due to be on a flight today during the call however that looks to have changed at the last minute, if I am free I will 100% attend the call to make sure we get some sort of answer to our questions. I don't think you guys can call Steve out on being negative, at the end of the day he's frustrated and has every right to using this bb as a sounding board. I don't think he has been overly critical about anything we haven't all been disappointed with. Sure it's not great for new investors to see but at the same time, all he's really asking for is some transparency. I have been guilty myself of being a little negative recently but in general, I like to try and keep it balanced, I do have faith in the products but I need to see more get up and go from the directors. I'd far rather see a solid sales unit installed than anymore "advisors"... there may even be one but how would we know?

I look forward to hearing what has to be said this afternoon.

Daresay we will see a lot of PIs sell today and buy back in lower... completely understandable, more needs to be done, I doubt this Q&A will attract any attention from outside investors so I dare they price will stay the same but you could be right and this could be well down in the single digits by tomorrow lunchtime... The products are good but these clowns need to get selling and get some traction on any of the products

We definitely want this to conclude with no investigation... I think you've done the right thing in raising your concerns however, a company at this stage in production sure as s h i t doesn't want this kind of publicity

good spot and I'd say worth asking the question.

we do need to become careful of not becoming an "echo chamber" on this board... the share price drops are a bit odd in my opinion, I don't see the point in them but I'm also not particularly worried about them. I look at the news vs the share price and honestly I don't see any reasons for it to have fallen so far from the highs of 20p+ there hasn't been the news we all thought there would be but by the same token there hasn't been any bad news either... I do hope we get some reassurance on Monday.

amazing how they got these all out right before the Q&A... I'll still have the answers to my questions thank you very much!

In addition I think I've just gained more information off the back of the packet than I have from the company itself, like the fact they have a website saltme . com where you can buy the bloody things!!!!