Ann: Appointment of Specialist Corporate Finance Energy Advisors, page-90

Good to see your back @Byron I disagree with you wholeheartedly and don't think HHR is a dog stock. I think it's a speculative stock with all the risks and potential that this type of stock brings.

IF HHR manage to retain a meaningful position in the project and the project proceeds you are looking at 7-10c+ SP. (based HHR, BPC Research , Bell Potter) That's the potential 3-4 bagger from current prices. You can't access that potential without risk.

The risks have been well laid out by others but include all the macro, political, approval, technical, supply, pricing etc. Until these are mitigated/resolved the stock is likely to struggle. The good news is that these are being addressed and we won't be waiting 3 years to find out.

To me one of the biggest risks to be resolved is financing. Securing a $100m+ facility as a single asset O&G company with a MC of $65m will be challenging. This is why HHR are looking at all the options including a "debt facility, pre-payment on future production streams, publicly listed and private bonds and possible additional divestment of equity in the Phase 1 development project".

Maybe they can pull together a financing suite with a blend of debt, pre-payments and bonds but the problem with this sort of deal is it's a little like a trifecta/multi bet, you need each leg to perform and if one doesn't it all goes down.

The other option is to farm out another chunk. Far less risky and potentially would give HHR a "free carry" on Phase 1. There is a little easter egg in that announcement as any additional divestment will only be for Phase 1. Retaining 40% of Phases 2 and 3 is important as that is where the real money will be made. (as the infrastructure is already paid for in Phase 1 and the EPL will be finished)

The transition from explorer to producer is a big step. Maybe HHRmake it, maybe theydon't. Either way this is all happening in real time and won't drag out to long. In the meantime maybe consider averaging down?