Member Info for EGTP

My Latest correspondence with PA (1st part)

Thanks for your note.

The decisions we’re making now have been part of a plan for almost a year, although some of the decisions had to be delayed until we cleaned up some of the surprises that came our way and had a solid base to step on. 1 year in I think we accomplished quite a bit notwithstanding the particularly sad share price.

Running stripper wells (<15 bopd) is hard business and only sustainable if you have scale, are in close proximity to one another, you know the geology, and have good relationships in the area to reduce downtime when things go south.

I came in 1 year ago in early October and worked with the UK group to put in place best in class corporate governance and procedures, introduce fiscal discipline and a structured decision making process. We conducted a thorough review of our portfolio even if it meant putting everything on hold. We brought on Sarah Cope (a former NOMAD) as a NED in December ’18. We renegotiated the Stockdale well package, picked up a salt water disposal well and another well with no additional cost to us, terminated all US based employees, reworked the wells, brought them online, merged with Attis in May 2019 with their Fort Worth gas assets. Russell Lamming (a geologist) and Thom Board (Petroleum Engineer) came on board as NED and COO/Director, respectively.
In June, our production update was as follows:
PRODUCTION SUMMARY - MAY 2019
OIL (Bopd)
GAS (MCFPD)
(Boepd)
MAX PRODUCTION
148.84
685.50
267.03
MEAN AV. PRODUCTION
79.32
303.55
131.66
NET MEAN AV.
56.58
216.51
93.90

We stated that once fully optimized, we should achieve close to gross 72 Bopd (oil only), and expected that production would be in the 110-120 BOEPD range.

Along the way, we settled numerous debts, avoided lawsuits /settled claims with creditors, cleaned the company operationally, are current with our filings, are in the final stages of the transfer of operatorship in Zinc Ranch (takes 9-12 months), we obtained a lease in the Texas Panhandle with 17 drillable locations with a PV10 of $7 MM, entered into an MOU with a large player in the Area to explore additional opportunities, and finally bring a clean structure with large net operating loss carryovers (20+ MM) that we can use to shelter gains in the future with any JV.


Commodity prices dropped by 20%, had to raise money to cover past and current debts and diluted shareholders. It wasn’t pretty for anyone, but we couldn’t get reserve based lending and until we got our governance and other issues resolved, we weren’t a proper candidate for a JV with a larger entity. I believe that we’re much better now than we’ve ever been and are working to monetize all the effort to date.

Please note all this information is in effect in the public domain

Interesting from talking with a couple of Attis investors over the weekend who don’t post on this board, to discover both hadn’t actually understood the 22nd October RNS - and TBH it caught me cold initially too.

Their understanding being the new ‘red cave’ acerage secured with the 17 primary well locations - still needed Attis to close the proposed JV to finance this deal and understandably the need to then split a large chunk of their 75% net profit share.

They did not understand Red Cave was already set up ready to go next March - and did not understand that the MOU agreed toward the potential JV was yet another deal set up to open doors to other opportunities in Texas panhandle and Enhance Attis own credibility. The in house bottom to top practical knowledge and the 20 plus mil of reclaimable tax losses, no doubt the overwhelming major attraction to the undisclosed large player.

To quote PA from a few days back

‘Along the way, we settled numerous debts, avoided lawsuits /settled claims with creditors, cleaned the company operationally, are current with our filings, are in the final stages of the transfer of operatorship in Zinc Ranch (takes 9-12 months), we obtained a lease in the Texas Panhandle with 17 drillable locations with a PV10 of $7 MM, entered into an MOU with a large player in the Area to explore additional opportunities, and finally bring a clean structure with large net operating loss carryovers (20+ MM) that we can use to shelter gains in the future with any JV’

Presuming the JV gets signed off (imminently) there could potentially be an advanced pipeline of funding available to Attis to do example the re-works at Zink PA spoke of once operator-ship transfers (also imminent) they may also be able to deal with the mothballed forest hill issues too.

To quote PA again

‘We stated that once fully optimized, we should achieve close to gross 72 Bopd (oil only), and expected that production would be in the 110-120 BOEPD range’

This is been achieved now - so with this in mind, the probability of 200 to 300 boepd net to Attis at Red Cave. Re-works / enhancements at Zink potentially adding a conservative 50 boepd ? Then another 100 / 150 boepd If Forest Hill could be restarted

It’s very understandable to see a 400 to 600 boepd company within 12 months - putting the well management and any fruits of the possible JV, and PQE coming good aside - how much would that be worth in SP and mkt cap ?

DYOR

Understandable call Scotty - good luck best wishes :-)

Yes a good producer also but Unfortunately we cannot move with Forest Hill as of yet due to the access issues - But I have no doubt that PA will either resolve these, or work out an acceptable Exit strategy - he is the main man :-)

Yes good valid point Spikey - but just to repeat from previous, and again to quote PA In the last 24 hours

‘The decisions we’re making now have been part of a plan for almost a year, although some of the decisions had to be delayed until we cleaned up some of the surprises that came our way and had a solid base to step on’

Obviously being a Lawyer PA could not possibly even hint / allude CW was on his way out in correspondence from a few weeks back, but the last RNS clearly indicated to all this was likely.

Hopefully confirmed news of the JV shortly where we can make great use of our 20 plus million losses, further enhancements at Zink, prep work at Red Cave, more service contracts and who knows maybe even PQE !

Onwards and upwards ! :-)

Absolutely Stalin - all the CW bashers were adamant they’d buy more - I’ve took another 2 mil - but as we know elsewhere talk can be cheap

Anyway onwards and upwards !

Hmmm what a surprise - looks like I’m going to be apologising to PA. As we used to say in drag racing ‘when the pedal drops the bulls##t stops’ :-)

So going by the words passion And pledges of all the anti CW crowd - we should double the sp today ! PA done this for you guys don’t let him down :-))

Hey Diggit ! Get those filters turned off - You don’t know what your missing here, there’s at least a few on here that have been campaigning hard to assist your nice low top ups - maybe you might want to thank them ?

Ironic we’d had a totally spam free day until late afternoon - no doubt helping us finish blue :-)

Appreciated helpful :-)

Thanks Helpful - $25 mil ! I didn’t figure there was so much recoverable (maybe missed it?) - mind I’ve only been around a couple of years - yes in that case no wonder we are a hot target

When a lawyer states in writing ‘we will do a lot better going forward’ they mean it - always under promise - over deliver - never make promises you can’t keep (boris Johnson take note)

These were PA’s parting words - and the key statement for me

DYOR

PA – also happy for me to add

Given the delay in drilling to the spring, I do understanding of the feeling of dead money in an investment that wont produce results for a few months. We’ve tried to provide proper visibility to the shareholders that we continue working other avenues (MOU with a large player in the Tx Panhandle) and will work over the winter months to prepare for a spring drilling program.

While we would’ve preferred to be drilling in October, it took approx.. 2.5 months + to get the signatures on the lease. This fact was completely outside of our control, but put us squarely into the winter months. Drilling does occur in the winter months in the Panhandle but its expensive (heaters for the frack liquid) and delays for inclement weather that pops up

As a Board, we’re evaluating strategies to partner up or enter into JV’s that would allow us to tap into their infrastructure in order to grow .

Hope this has helped and we’ll certainly do better going forward.

Paolo

In my opinion the majority of our current negative issues are clearly caused by previous administrations, however Eddie G still did not set out to cause us any harm, he was hands on, positive and pro-active, he targeted Forest Hill first because the flow rates we expected to be the best and he turned out to be correct. Initially this and the hype spiked the share price and nobody complained. However he and CW did not deliberately overlook the access issues – which eventually cropped up and crippled this venture.

EG was also focusing to much effort on PQE – hence his early departure, and as a result Align Research made a valiant attempt to remove CW as a suspected party to this, and for a number of other reasons which remain unsubstainated.

One can only presume the aim was to boost the SP - but unfortunately it inadvertedly poured more fuel on the fire, because the action totally failed and the SP tanked – hence the bitterness and gang warfare that still remains here.

IMO - if we are all united in the cause for the SP to rise, we simply need to accept the past and move on – life is short.

This is now a good growing cash flow positive company with solid achievable ambitions going places

DYOR

?Thanks Luther - to quote our good friend Sinbad ‘deloro was within the rules’

Rule number 1 - never make statements you cannot Substantiate and promises you can’t deliver, the latter the reason for Eddies departure.

I can confirm I’ve had several correspondences with PA over the last few weeks and have passionately pushed for the case against CW on behalf of some members of this board, to which it’s main body consists of I believe up to a dozen investors ?

PA is happy for me to quote the following -

‘Regarding Charlie, currently he’s not receiving a salary and is the contact with the London market. Thom is very capable as a manager and operator and I’m in the US. We need someone in the UK that focuses on the public market. Thom should be focused on doing what he’s best at in my opinion’

‘On the Charlie front, I don’t know of his past and to be honest, I didn’t care when I came on. I believe in hard work and dedication and that’s it. During the first 6 months (prior to the Attis transaction), Charlie and I worked endlessly to clean up the issues left behind by the prior US administration and not allow this company to close. He was instrumental in the UK side of things and I handled the US. Plain and simple. We then acquired Attis and he’s been the lead on the integration, filings in the UK, etc. While the shareholders think that executives are overpaid, I can’t hire another CEO, General Counsel, CFO, etc. and not pay them. Wages are what they are and qualified people aren’t free. Its difficult to bring in a strong CEO, GC, CFO, Chair, etc. with what we have at this time’

So all I can add is I’m not a happy clapper - I’ve tried my best for you all, but unless you can supply some evidence of substance to back up your claims CW won’t be going anywhere soon. Either way the company is currently moving forward in a very positive direction.

The only way to prevent / slow this is to continue harassing PA with regard to CW - which may encourage him to depart and / or continuously churning over the same spam on here over and over discouraging new investors

Well it’s almost as interesting as big brother - Nobody including bloe expected the drill result to be so good - it caught everybody cold hence the lows it came from, it was a lucky jackpot strike - are you seriously suggesting that someone had looked into a crystal ball and dreamed up a plan that CW would decide to sell our 3% holding off at a loss - for some kind of back hand pay off at a later date ? Granted we specifically know Align Research received a huge payoff after the first placing - for services rendered - or perhaps future services not to render.

Can only suggest that it there is specific water tight proof to back any theory’s to simply present it to PA or some relevant legal body - all you will achieve by posting it all here is more erosion of the SP

Keep in mind CW Isn’t currently receive a salary and hasn’t been for the last 3 months - this from the horses mouth and I’m sure others can confirm this

Sinbad can I please ask have you ever met Charles Wood ? and do you actually have any credible evidence to support the allegations you and others make ?

If so can you please share so we can all make judgement - thank you in advance :-))

It’s a good important question about production that’s been overlooked in the last RNS maybe due to the bigger news J2019, I don’t doubt it but understand why others wouldn’t

Mr Helpful are you able to please help this gentleman with his concerns ?

Quite ironic that MATD after 5 years and 50 mil plus worth of placings, director changes and dusters, finally struck oil

should settle down to maybe 300 / 350 boepd with current 33 mil cap - apologies it’s non Attis but provides a good appreciation of our current low sp and mkt cap despite what’s been achieved and what is now very possible

So conservatively very rewarding in short time span with low risk - potentially massive and game changing

Plus key to. opening other new doors

DYOR

Hey Sinbad and Squirrely - appreciate the constant input very entertaining at times ! but i think most of us would love to mark you both as strong sells - but don’t want to be mis-understood

In the meantime congrats on the deramp campaign again today - appreciate being another 10% down doesn’t matter - but it maybe does to others ?

But for me Is there anyway you could please continue this good work so I get some even lower top ups 0.5 / 0.4 would be fantastic in the short term - all you need to do is keep pushing the utter clueless poorly informed rubbish

thank-you in advance :-)