like that thinking but remember the big boys move slow....glacially- that's how we nabbed ATP 2044 from under the bigger players....inertia at play. Neil saw the opportunity and pounced on the EnergyCapture lads- they're happy because we will monetise Grandis faster than a major. Neil managed to _(within the space of 16 months)....JUST on Grandis (forgetting the other assets):
procure ATP 2044 at a relative bargain (the extent of which is yet to be realised)
convert a smidge of prospective sandstones to 395bcf at 2C
get a very scare and hard to procure rig lined up
exercise the foresight to get a mobile ALS lab on site at Grandis
Get all the necessary approvals and blessings from the relevant stakeholders/land owners/native title- etc etc
secure a Federal Govt 48.5% R&D rebate for utlising an innovative technique
Line up a loan facility against that rebate
Sign a Data Sharing agreement with Santos
Meet with potential new certifiers NSAI in the US (same mob used by OMA/BLU- very exp. QLD CSG certifiers)
and negotiate a $1million contribution from Origin (with options for 405 more drills) to provide data for them to potentially give us shed loads more $$$ to inject the shallower reaches of Grandis with CO2 to offset their naughty naughty fossil fuel emissions
drill a 4000+ meter hole- and UNEXPECTEDLY gush conventional gas from it.
currently await data analysis, wire logs and the like- to unveil just how much gas (and potentially condensate) we have lurking below.
All- funnily enough- all whilst "fluffing around";
I reckon it's an agile broker led raise and they'll want to feed their clients a nice deal- as is the norm.
The pace of investment inflows for small cap explorers like us is, trickles down very roughly::
early doors retail chumps like us, getting all frothy over reading an email from a nimble investment house/marketing machine like Next Investors (after they've had their fill initially of course- and remembering- we paid for them to spruik us!!)
hungry, alpha seeking investment houses/brokers (for alpha seeking clients)/smaller funds- not afraid of a bit of risk in return for outsized returns
more industry focused investment types- brokers for clients with a pancahnace for oil n gas etc
High Net Wealth/Family office types with an interest in O&G (or perhaps balancing their "safe" portfolio components with a bit of countercyclical risk
Sophisticated investment houses/funds
Big oil n gas players looking for assets
Examining the makeup of the Top 20 shareholders (and even deeper analysis of the Top 200) shows a mix of the early players above, not the last 2 bullet points......so far at a least.
Santos/Shell/Origin/Whoever will be very interested in us even more once we're further along the analysis and prospective to contingent to proven curve.....they probably don't stump up monies yet. Maybe the Flannerys and Tri-Star do....maybe, to supplement their OMA stake- but that might just be my fancy.
End game- Santos obviously best placed via relationships, data sharing agreement etc etc and maybe we do partner with them, using their cash to dig the heck out of Grandis and we give up some asset % ownership for that privilege.
Ultimately though- someone takes us out - they'll have to pay good money to get it.
EXR Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
(20min delay)