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Thanks for the much more detailed explanation. Such a shame this solution has not been used by PEMEX who have had a historical glut of heavy viscose residues, to the extent the basically had to massively reduce refining, instead sending their crude to the US and buying back the diesel.
Even if they had used MSAR in one of their smaller refineries it could have been a game changer for us as a company. Makes you wonder why the agent (Redliner?) couldn't convince them to implement our perfect solution to their problem. Probably not greasing the right palms....
"What, specifically, is refinery refuelling as it relates to MSAR?"
My understanding is, once the refinery has produced all the expensive products from crude, it is left with the heavy residues. In order to utilise these they have to use diesel to "thin" the residue into a usable product. Using the MSAR process there is no need to use the expensive diesel saving the refinery money. Also the MSAR produced can be used to power the refining processes making a further saving??
I'm not holding my breath. Wouldn't surprise me one bit if agreements still not signed by end May. The "lawyers" excuse is simply that, an excuse. If these giants were seriously prioritising the trials, they would have started by now.
Sincerely hope to be proved wrong but cynicism has proved to be the correct approach when considering QED timelines.
Agreed! When you approach it from this angle, a potentially huge global opportunity driven by 2 (privately owned) leviathans of industry and the only way you can get involved is to invest in little old Quadrise. If all goes well, the potential upside from here is enormous!
46G
"While we still have the open offer open what will happen with the SP if we get news that MSC is signed"
As the OO is not for a significant amount I don't think it will have much effect on the SP reaction to the announcement of the tripartite agreement sign-off. Might slightly delay or partly subdue any rise short-term but I would expect a quick jump 100-200% followed by a steady rise in the weeks/months following sign-off.
It beggars belief the store JM puts in the Valkor/Utah story. Everything happening in Utah seems to take ages and Heavy Sweet Oil got the permits for their 4 pilot wells in Dec 2022, yet here we are 15 months later and he expects the Valkor money "imminently". Dream on Jason, I don't believe we'll see a bean from them this year.
Another concern for me is around 2 years ago when AM joined us, he told us his specific priority was to narrow down the focus and get a commercial contract over the line. Based on what we have been told today, we seem to have more plates than ever wobbling away on their respective canes. I appreciate it takes a lot of logistical planning to deal with the majors they are trying to sign up but for goodness sake, don't get side-tracked by the likes of Valkor until oil is actually flowing!
Get Morocco to a commercial deal, while developing the MSC project. The BioMSAR Zero can go on the back burner for me too until such times as we have revenues, (not shareholder cash) to throw at new ventures/developments.
I'm not overly concerned about future fund raising as the cash runway post this raise should see us well into 2025, when hopefully the SP will be much healthier.
The cash runway could be reduced however should significant progress be made on projects, requiring development capex. Again, should this be the case I would hope future raises are at much better SP rates and less dilution.
What we definitely need to avoid is another year of meandering through delay after delay with the corporate expenses burning the cash and being no nearer commercial success by 2024 AGM. That I think really would mean the end!!
"So whats the verdict, Buy, sell or hold on the basis of that call."
On the basis of the call, for me it's a hold, although I am buying the OO. Regardless of the call, I would not sell @ 1.25p but will hang fire on future purchases until more positive news is forthcoming, even if it means paying a bit more!
To be honest, the whole presentation looked like a pitch to new investors, rather than an existing investor update, as nothing has basically happened in the last 3 months, well except for 3 more salary payments to our hard-working team.
Looks like both AM and JM were in home offices too, so at least they might be reducing office heating costs at QED HQ
"Did they mention the Valkor drilling permits and if so i am guessing they are imminent ?"
Exactly so! and guess what? If they do get some oil out of the ground, they are going to send it to us for testing, whooopeee!
In addition to my open offer take up, I have spare cash in both my SIPP and ISA which I hoped to use to take additional shares in the OO or buy on open market. After today's IMC I'm hanging fire meantime as I heard nothing to suggest there will be progress on the SP, other than JM's hopes to conclude the tri-partite agreement in Q1. However, he seemed pretty sure it would be done last December, so he obviously remains clueless on timescales.
They give us the same "clients are very keen to progress at pace" rhetoric but actions, (including lawyer activity) would suggest otherwise. It would appear we are in the "diddy pile" on the MSC/Cargill lawyers desks continually being overlooked as they concentrate on much bigger contracts.
Well that was another hefty dose of jam tomorrow. Very disappointed with the Moroccan project as was under the impression client would review test results Q1 and negotiations for commercial supply in Q2 with a view to commencing supply Q3/H2. Now it would appear there will be no commercial revenues in 2024.
IMO the funding has been an issue holding up projects and the SP.
How can we negotiate an agreement to supply OCP when we don't yet have anyone signed up to produce the fuels. I believe the MSC trial and Moroccan supply are inter-linked, even if they end up being from two different suppliers.
Sincerely hope once the cash position is improved, things will progress more tangibly in Q2 and at the very least, a contract to supply Moroccan client will be agreed. The agreements required for the supply of the MSC trial are obviously more complex as they probably will include future supply agreements beyond the trial stage, (if successful). It may take a year or two to get there but hopefully we will see the SP hit record levels in the not too distant future....