Versarien Share Discussion Threads

[alchemy] 02/7/2019 10:36

Here come the blues! Ne'er mind DYOR. - Buy more.No disclaimer.LolEoe

[dgduncan] 02/7/2019 10:11

Columns don't line up but is easy to mentally line them up.

[dgduncan] 02/7/2019 10:10

Here is my estimate of VRS potential revenue.

From the RNS

"This order is for 12kg of Versarien's high purity graphene nano platelets ("GNP-HP") integrated into a polymer masterbatch by the Company and follows successful laboratory testing and industrial trials by the Customer. The Versarien GNP-HP enhanced material will be used by the Customer in down-hole drilling components for their initial scale up process. If the scale up is successful, additional significantly larger orders are anticipated. "

I have been involved in oilwell drilling for the majority of my career – now retired. The only downhole drilling tool I can suggest that would greatly benefit from graphene enhancement of any sizeable nature is the stator in a drilling motor. Battery posted a great description in post 71947. Additionally, Johnveals posted 71959 with a great explanation of why the reliability and performance of motors are so important.

Problems have been when the bit encounters too much bite on the formation, the fluid slips between the elastomer and the rotor and the bit stalls. If the elastomer can be toughened while maintaining or improving friction this would allow greater power to be transmitted to the bit.
With the constant rotation and compression of the elastomer, heat builds up in the crests of the stator and can lead to mechanical chunking failure. Graphene is a great heat conductor and so would help dissipate the heat from the crests and improve reliability. It therefore makes total sense to enhance the stator elastomer with graphene. Several patents exist for this.

If indeed this RNS refers to a stator manufacturer I would guess they would target a 6 3/4” or 4 3/4” motor since these are drilling deeper and this is where reliability and power are essential. They have a direct impact on rig time and clients will pay a premium for tools that can minimise drilling time.

So taking a 6 3/4” stator by a leading manufacturer,


If we look at the dimensions of a stator as per 675-56 7.0 which would be a reasonable stator to use in demanding drilling conditions.

Using the OD and ID of the tube and using 7.9g/cm^3 for the density of steel, we can calculate the tube weight. Subtracting that from the spec sheet stator weight we have the weight of the elastomer.

Further, we can assume different loadings of 0.5%, 1%,2% and 3% of graphene by weight of elastomer. Which would be best ? – only VRS and the buyer know.

I do not have current price lists but this stator could be in the order of $10,000. Just an educated guess - maybe more - maybe less.

I could easily see a customer paying an extra $10,000 for a motor that is almost guaranteed to drill super fast and not fail downhole. If it works, they would be willing to pay way way more !. (Motors are paid for by in-hole hours so this $10,000 additional capital cost to the stator is peanuts in the overall drilling costs).

Assuming all the 12kg is being used to enhance stators for field use, we can calculate the number of stators based on the % loading and we could assume that the full $10,000 is covering the cost of the graphene i.e. we now have an estimate for the cost of the graphene per gram.

We know the capacity of VRS is 3T per annum and we hope that with the imminent big 5 coming to fruition etc. we would hope this figure to be well exceeded.

We can therefore make some wild guesses at the possible annual revenue for VRS assuming the graphene is being sold to clients at similar values.

Tube Weight Kgs Elastomer Kgs Purchased Kg
311 26.94 12

VRS est Revenue
Loading Graphene Stators Manufactured GNP cost Cost / g 3 T per annum
0.50% 0.13 89 890,886 $74.24 $222,721,431.48
1.00% 0.27 45 445,443 $37.12 $111,360,715.74
2.00% 0.54 22 222,721 $18.56 $ 55,680,357.87
3.00% 0.81 15 148,481 $12.37 $ 37,120,238.58


WARNING : these figures are pure fiction and just a futile exercise at taking a stab at what revenues could be possible but in reality, could vary from 0 to $Bs. This is not intended to be advice to buy or sell VRS shares. Do your own research.

[rogerthegrouch] 02/7/2019 09:55

Expensive game to try and keep it under a quid. Buyers will come soon. Blue finish.

[adejuk] 02/7/2019 09:49

it looks as if a shorter is churning around 200k

[luckyorange] 02/7/2019 09:41

Hopefully the seller is out now , I do think the shorters have information when there is a seller in the market, who it may be/was I have no idea. Sometimes shorters are given too much credit they always operate from a position of inside information which has been proven many times in VRS and more recently in IOF.

They have a network obviously and it is verging on/or is criminal. It takes time to get evidence of that type together and hopefully there are enough 'honest' people in the city to out those who have been making a good living out of it for years.

When there is a large seller the share price will decline, but on the other hand it will recover too.

[pshevlin] 02/7/2019 09:38

He is DEFINITELY NOT an intellectual!

[adejuk] 02/7/2019 09:30

he is unintellectual. he is mono-maniacal and obsessive. nobody can be an intellectual with those limitations

[rogerthegrouch] 02/7/2019 09:16

As genuine investors in a company, we have far more knowledge and desire for knowledge than someone with a tactical short, who is probably reliant on some fake news, chart pattern or listening to a misinformed TW sell call. We are in the detail, they are not which has been proved on many occasions. A couple of recent examples:

1)TW suggested that the BIGT deal would be at 60p with a degree of certainty
NR told us with absolute certainty this would not be the case

2)In TW’s latest podcast he referred on several occasions that VRS makes no money from its GRAPHITE business.
Whilst this is true, Versarien makes money from its GRAPHENE business, it shows a massive misunderstanding of Versarien’s products

3)Furthermore, TW also estimated that the recent graphene order would be in the region of 2-4 million dollars, but the next day said actually it would be 20k at most.
This is quite a range and shows the guy hasn’t got a clue so shouldn’t comment. The deal value is sensibly kept private and its value is largely irrelevant as it shows the business model works with high profit margins and a scalable solution that needs (not wants) graphene to work.

The guy hasn’t got a clue and purely values companies on P/E ratios which overlooks growth and potential which Versarien has masses. Whilst this metric may work for established companies it doesn’t work for companies with incomprehensible growth. He’s not an unintellectual man, and knows this but is preying on those that struggle with this concept (eg Rainbow).

[squire007] 02/7/2019 09:14

Early May we were just over 130p, so hold on tight, we are primed ready once again ..

[davemac3] 02/7/2019 09:13

SuperG aka Colombo

[grabster] 02/7/2019 09:04

"The speed at which equipment and materials degenerated was a surprise to the military"
Eh? Rusting in seawater took them by surprise?
And they are going with the dirt cheap brand of graphene paint?

I look forward to the day when rival coatings are tested alongside each other for a year on a publicly visible sea wall or pipeline ;-)

[rainbow23] 02/7/2019 09:03

There you go,back under a quid just as I said a couple of days ago.This really is a shorters dream share.

[pshevlin] 02/7/2019 08:57

I'm thinking that a lot of this selling is punters moving cash over to IOF. A balance is needed here as news could come any day which would shift the share price dramatically. Wouldn't want to be short of stock.
edit. In cash terms Buys on IOF almost exactly mirror sells on VRS

[twatcher] 02/7/2019 08:27

“Re Patrick and his story, which I read before near all were aware”

Ah, a variation on the “I know something the rest of you don’t”....”I knew something before the rest of you”

[woodpeckers] 02/7/2019 08:13

"The testimony also discussed the need for the U.S. government to adopt a grand strategy for graphene commercialization – a large-scale integrative and collaborative effort amongst industry, academia, and government to support and accelerate commercialization of graphene in the U.S. similar to what the U.K. and EU have undertaken."

“In the past 2 years, we have been actively raising the issue of China’s rapid advances in graphene to the US government and emphasizing the time sensitive nature of creating US competitiveness. This is a pivotal time for graphene development. With China’s strategic investment in graphene and lack of US momentum, if we do not take drastic measures, we will soon be dependent on a supply chain dominated by China,” says Dr. Zina Jarrahi Cinker, Executive Director of the National Graphene Association."

[ic0gcds00] 02/7/2019 08:08

Sounds good