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Let's not forget the BoD is in talks with other interested parties, the BoD's preferred party, for their other licenses so we could possibly get this farm out this week and another farm out news for the other licenses with their preferred bidder.
All in the RNS's if you can be bothered to do some research..
Posted on Twitter just search for CLNR.
We are in for a treat I tell ya!!! 4,6 then 10p coming imo. Just remember one thing and that is the £650m NPV for the licenses. If CLNR is valued at just 10% of that figure we are looking at £65m mcap.
My buy showing as a sell so MM up to their usual tricks. Been watching this for a good while and have previously traded it. Looks to me the JV is coming and with licenses worth $700m who wouldn't be interested.
9p is the risked NPV10 valuation assigned to the 2p reserves, i.e: the book value of where BLOE should be as a bare minimum PRIOR to ANY drill program results.
The 46p valuation is based on the unrisked contingent resources of 72mmboe & 605bcf. So BLOE should be range bound between 9-46p as we continue to derisk the resources in our acreage...
Obviously won't get to 46p in one go unless we hit a motherload but slowly and surely should get there in time....
These valuations will require adjusting if there is any further equity raises obviously which there will be to fund phase 2 which I believe will begin in H2...
Let's not forget about the MOU with a major gas company in Georgia and currently facilities are able to handle 2500bopd with plans to hook up to BP main gas line once production exceeds this figure...
72mmboe and 605bcf resources all for £7m mcap. BLOE has the resources of a mid cap company and are slowly derisking it's acreage aswell as proving the tech in country which can have larger implications.
NPV10 valuation of $39m for 2p reserves which are set to increase when results from West Rustavi are out which will significantly derisk the acreage and add further reserves.
All foe £7m mcap. You couldn't make it up...
Mcap is currently below the NPV10 $39m value attached to current reserves which in itself tells you BLOE is undervalued.
The current drill program in Norio and West Rustavi are set to increase these reserves significantly. Sooner or later the sp will catch up with the book valuation.
The BoD are underpromising and overdelivering and are yet to set a foot wrong. PR is fantastic and RNS's read as they should. The only negative I can find is BoD lack of skin, which will hopefully be addressed soon enough.
Worth a repost as it contains very detailed analysis of both Norio and West Rustavi. Current target is 900bopd in Q1 with longer term targets exceeding 2000bopd which they can easily achieve this year...
http://www.blockenergy.co.uk/wp-content/uploads/2018/12/block_energy_initiation_report_5_dec_18.pdf
Norio is just the taster with West Rustavi being the main meal. The side tracks set to derisk a large proportion of the resources and have a risked NAV of 9.2p on a success case.
That is just for the current side tracks and without taking into account the workovers. BoD have so far been delivering on their promises, now it's just a simple matter of removing the operational risk by proving the tech works.
The tech has been tried and tested in Canada and has proved to be a useful tool to increase production substantially. The BoD are looking to reaffirm that by demonstrating it can work in all geographic locations...
Let's not forget that BLOE has an MOU with a major gas supplier in Georgia who is willing to take all the gas it can produce.
That coupled with the mid cap resource on offer makes this a very exciting prospect at current mcap.
Weathering the storm Cogster, it's been a good ol' rollercoaster has AIM and so too has life.
Taking a back seat now although still searching for that unicorn lol. I'm still pretty much a nipper, no retirement just yet. Let Zaza know we've got a tool to help him get that 200tcf out the ground pmsl
Here's your 5 reasons:
1. SP currently below IPO
2. Fully funded drill program
3. Low b/e of 110bopd
4. $600m NPV
5. Targeted revs of $20m by Q1 end
6. Low free float & No of shares in issue
7. Drill Program targeting 900bopd by Q1 end
8. Wells are workovers and appraisals no explo risk
9. 608bcf and 37mmbo resource
10. Do some research
Such a shame that this drill hit dust as AIM in general could have done with a strike. Given the CoS the odds were stacked against a strike and anyone holding either hoping or praying for one really needed a miracle.
The risks were pretty high but so too were the rewards. Had Wild Horse hit the jackpot then we could have easily been looking at 50p+.
Now that the risky exploration drills are out the way there is still a chance for the BoD to redeem themselves and shareholders too
The Block XX drills are appraisals therefore virtually no risk of hitting dust. Rather the risk is the flow rates which need to commercial for the oil to be monitised.
I will be looking to buy here as soon as it stabilises and we are given further guidance on timelines. All is not lost here plenty to play for.
GLA
Why bother with people stuck in the past? Thing to concentrate on is the here and now. Out with the old and in with the new is exactly what's going on here.
If people can't see that then they will never see it. Continue to provide the CURRENT facts because that's what should be reflected in the CURRENT mcap.
I think it's £3m on completion of JV and £2m 180days later so plenty of time for a big rise before we are due to pay our share of the costs...
Will play out here. Fully funded drill program targeting 900bopd with MOU in place for 1million cubic meters of gas per day or in good old oil barrel equivalent 6k boepd...
Drill Program kicking off this month, let the rerate begin.