To put it simply CHL put some of the costs for the initial drilling along with Foo this was when VOG had no cash , in return they were promised a royalty that is front loaded, without this happening there would have been no VOG so understandable they want their cash back(plus profit) via this royalty, but new comers don`t understand and keep questioning why all this cash is going on royalties and say it is a drag on the SP and II participation and want rid of it!
This 4.4 million by KF worries me not gives me heart. For if cash flow rich then this would pay back the amount due. Worried also that if KF not have the money then the mother of all cash calls and dilution of shares would need to take place as happened a couple of years back. How did Foo etc get in a critical position where suddenly needing to payback 4.5$ mmillion, this should be pplanned in advance.
In fairness, I think the point Salty and other so-called whingers are making is that the good responses you received in a one to one chat would not be so necessary if the BOD were more forthcoming in their rather infrequent RNSs.
The AGM went well apart from the old chestnuts being dragged out, more on that later.
Impressed by John Bryant and Ahmet Dik whi seemed competent and personable additions to the board.
Apart from usual Blah Blah... these are the positive points I took away in no particular order:
Accessing 25 new customers H1 2016 8,000m pipe laying into Bonaberi, followed by 5,500m in H2 12/25 customers in H2 - GSA's signed.
3 phase expansion of processing plant, initially 25mmsf, then 30mmsf and then 40mmsf, no timescale or cost given.
Looking to increase P2 to P1 reserves presumably through drilling programme, competitive costs on drilling expected due to market conditions. Spud 2016 twin wells to current producing wells, so risk considered low.
RSM relationship going well and RSM paying contributions.
BoD will consider buy back resolution, although substantial buy back could only occur with windfall e.g. sale of West Med.
West Med sale still being worked, my view is that it may take some time but would be a welcome surprise when it happens, Foo clearly still sees it as a possibility.
BoD recognises royalty issue needs to be addressed to see more fall to the bottom of the P&L., which in turn will assist share price and institutions perception of VOG.
The BoD were asked to review joining the main market and report back to shareholders, don't expect any action.
BoD recognise need for new independent BoD members and seemed to acknowledge need for continued work on governance.
GDC operationally profitable and need to get costs down.
Discussions with BLVN could lead to something.
Discussions on further power contracts coulod lead to major contract.
NOW the negative points:
The BoD finally acknowledged and even Foo (and Numis) all agreed that the royalty issue needs to be resolved for VOG and the sp to substantially move forward - the BoD are looking into this issue and Foo (at the right price) would appear to accept the idea of being bought out. On this point Foo did state that he had put up over $4m of funding at a critical point and at considerable risk and that he had yet to get all the money back as he defended the CHL royalty. So watch this space, I think something could happen here, especially if West Med is sold.
Grant M's. contribution was openly questioned and at a salary of $250,000 a year not unreasonably. He looked totally bored and I reckon he had a "gagging order" imposed on him as the others have finally realised that silence is the best policy in Grant's case. Foo's defence of his contribution was weak at best and frankly the only justification that had any sympathy was that he was a founding member of the company, but then one could also say that he is partially culpable for loosing our money as well. If Foo wants to cut costs and raise credibility, it is time that Grant steps down before shareh
It's a load of B******x next year, blah.blah,blah, GM's contribution is experience then! this get's better by the day.
The Grip of the Entered Apprentice is made by pressing the thumb against the top of the first knuckle-joint of the fellow Mason, the fellow Mason also presses his thumb against the first Mason's knuckle.
The name of this grip is "Boaz". When a candidate is imparted with this grip and its usage it is done in this manner."
First the Worshipful Master says to the candidate: "I now present my right hand in token of friendship and brotherly love, and will invest you with the grip and word. As you are uninstructed, he who has hitherto answered for you, will do so at this time." :)
I certainly agree there is no need for bluntness Mr Rich, but FFS I certainly do not think an answer of giving ''KF the benefit of his advice and wisdom on a regular basis'' is a satisfactory explanation for someone to receive nearly $1/4million a year of shareholder money !!!!!
Thank you for your comments, If the question you asked about the company now in overall profit and the answer was correct (yes), then that is a very big deal now and would push the sp higher. IMO the company should put out a rns to say so as it's very important, but this just goes to show how much we need a good PR department to push the good points to date.
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