RE: GBP4 Apr 2019 11:51
If I can interject, you raise good questions. Like any company relying on a deal with a partner to progress it's assets, GBP will drain the money pot, however I don't believe GBP are a company such as COPL for example who advertise themselves just prior to the begging bowl coming out. Members of the board have very very large personal holdings in the company and it is their absolute interest to make this a success.
The board did make it clear via RNS/presentations about the oil industry's position on exploration during the downturn. For tiny GBP, no partner meant no asset progression. It goes along way to explaining why we are where we are. I watched Soden of Africa Energy talk about what they look for, the follow on prospects, GBP with just PEL 29 did not meet that and again, for me this explained the wilderness.
Now, had we not acquired PEL 94 I may have reduced my holding by now, but the thing with GBP is the teasing known's and unknown's that point towards a possibility of a deal in the near future. Why GBP terminated the mandate with Stellar at the most crucial point in time? Followed by a vote to have the right to add an additional 10% to a max of 25% share issue for a 1 yr period and 5-6 months later it still has not been issued? A change in the wording to 'right partner for all their assets' suggesting interest knocking on the door. After all, it makes sense to have interest following on from the result of Tullow's Cormorant well proving the play, it is a big deal for our asset/s!
We have recently acquired PEL 94 with the read across to both those proven plays being PEL 30 & 37. The info from Cormorant via Africa Energy is now migration distance risk.. the thief channel mentioned by PCL.. the recent wavering a further 25% licence reduction by the ministry in PEL 29 that was due, just the award of 94 prior to that due reduction ..? None of this makes sense with the info to hand.
The light is absolutely flashing is in our direction. Who knows what, when, why, how, if, will they... but so much is pointing to GBP finally progressing forwards from recent events not just within GBP, perhaps we'll be pushed quicker with a discovery from Exxon or Shell later this year? Or maybe Seapulse are about to take us on? who knows?
The current risk/reward is whether GBP will seal a deal and J is correct in saying the share price will increase should we achieve that. Whether or not it will take a discovery on someone else's drill or whether acquiring PEL 94 which gives GBP a much better Namibian portfolio will achieve that interest.. we wait to find out.
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