AGM13 Apr 2019 00:11
These are not minutes; just my impressions from what was said.
In response to remarks about dilution, it was said that there were no better mechanisms for for raising funds. Debt finance won’t be available until significant production history has been recorded. It was suggested that dilution would be more acceptable to shareholders if our interests were more aligned with directors - ie directors might take more in share options and less in salary. SS was unsure about why dilution was an issue for s/hs. He seemed more focussed on market cap etc.
New funds could be needed for non-drilling items, eg expanding production facilities.
Acquisitions might be a way of diversifying the political risks of taxation and regulation. Personally, I would be more concerned with problems of the company diluting it’s focus on the Weald, given the current enviable niche position. UKOG has enough on its plate without trying to diversify offshore or internationally.
It was asked if there was enough technical info available for a new CPR, or if more needed to be gathered. Reasonably enough, it was pointed out that the issue was shifting ‘contingent resources’ and low probability reserves into P1 and P2 categories which form the basis of company valuations. A great deal more production history would be needed to make a significant difference.
Hope these personal observations are helpful to those unable to attend