It’s always disappointing to see a SP languish and struggle to...

It’s always disappointing to see a SP languish and struggle to gain traction, just prior to Xmas we were at 11c. I have invested heavily in EXR for what the future holds and the realization of EXR making its mark is only about 6 months away IMO.

There has been a lot of criticism of Neil by some posters with the handing out of free oppies willie nillie (not quite true they will still cost you 12c to exercise). I personally think that the additional money raised was an excellent strategy, yes there is some dilution but the trade off to drill Grandis and carry out the flow testing without a partner gives them total control over the operation. This is invaluable as they hold all the cards, the success of the Grandis was outstanding no matter how you look at it.

I watched this Crux investor interview again a couple of nights ago, I can highly recommend this is worth revisiting particularly from the 14-22 minute mark where Greg speaks specifically about Grandis and the strategy and target zones they will be honing in on. Here we are about a year later and everything that they had planned on has turned out better than expected, and we are months away from getting flow results and hopefully booking reserves. What is particularly encouraging is Greg has said that they have done computer modelling and can get commercial flow rates. Computer modelling is not new it is done the world over in oil and gas and the programs work.

There is 400bcf in the sands (proven) and around 1.5tcf in the coals yet to be verified but he said that they are targeting around 2tcf all up (that was back at the time of the interview). We now know that that there could be even more gas in the coals with what was reported in the last update and then there is the unexpected additional free-flowing gas to surface.

It is all about getting the gas to flow but I think the next few months will be very exciting, it all hinges on the flow rates but you must have the gas there in the first place which we have in spades. Neil, Richard, Stephen + Greg are among the best in the business, if anyone can get commercial flow rates I think they can, I am sure that they want to make money just like the rest of us. As far as a partner goes, I think it’s more likely a partner who wants to be a part of this next exciting phase rather than trying to attract one with a lucrative offer. I think EXR holds the cards on this one.

I can be accused of looking at this through rose-coloured glasses, but I have stepped back and really thought this through. I have personally spoken to Neil and all the board members and had several email exchanges.
My conclusion is I like what I see, and I have no reason not to believe that they want this company to be highly successful and to sell the assets at the best price possible. As far as Mongolia is concerned thisis just a slow burn, dewatering will take time but IMO will be worth the wait.
I am not concerned about the SP like nearly any stock it fluctuates daily, you just have to decide if you want to be a holder or not.

Sincerely all the best to all holders and those thinking about getting on board.