RE: CAESAR29 Jul 2023 11:24
From ADVFN f31:
Last year I left the AGM with a feeling of a complete standstill and not much hope for anything any time soon.
Yesterday I came away a lot more positive, and in fact I feel rather optimistic that we will see some positive developments coming up for Petrel – and in a not too far distance.
Summary of the AGM:
GHANA:
I would say – forget about Ghana for the moment.
As per David in AGM…….
“There is a deal to be done, but the expectation on the other side is for pay-off’s - which we can’t do”
They have also been asked to consider alternative other acreage than the current one, perhaps with better chance of title, but we might struggle to find farm-in, so not attractive.
For the moment they are therefore hanging in and insisting on their current acreage “agreementR21; and see how it all packs out.
But I would say – don’t gamble on any Ghana development any time soon.
IRAQ:
Stumbling block has always been the fiscal terms.
But David on the new TOTAL Contract…..
”Not seen official details but media reports suggest that up to 30% of produced oil may be available for profit sharing, which means that the game could be up again.
And as a result of that we also re-established contact with Itochu”
PS: the current world-wide boss of Itochu Gas, was previously a 1 year intern with Petrel in Dublin !!
David….
“We have a very good local representative, politically involved, who had made considerable progress and wanted Petrel to submit a very specific proposal.
So they have submitted a proposal for Merjan, and they have been told to be available in September for meetings on the proposal.
David:………
“It will all depend on which terms can be negotiated.
If it’s not sufficiently attractive, we won’t be able to farm it down – and if the rate of return is not sufficient, we won’t be able to fund it independently”
So basically, we’ll now have to wait and see what will develop in September, and if negotiations can be successful.
As of February this year, no other competitors had (yet) submitted a bid for Merjan.
GENERAL:
As per above, I feel we MIGHT get a reasonable shot at Merjan, so that’s good.
But in addition to that ………;
(and this is the reason why I feel rather optimistic ………;..)
First off: David stated that their priority is now to increase the share price, and he could not have been clearer that this was not only in the interest of us as shareholders, but obviously also in the interest of their own large shareholdings and that of their family.
As you know, altogether they have a very large combined shareholdings, so yes, a good share price is very important to them as well.
The quickest way to achieve this goal is to use Petrel as a liquid LSE trading vehicle, very much like the Tamraz model
(David:……; “The Tamraz model in itself was a good model, but unfortunately Tamraz could ultimately not deliver).
So they have prioriti
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