RE: Questions not put...20 Jun 2021 23:16
BB, hi. "NO-ONE, asked a question at the Q&A period"..."Says a lot doesn't it"
I asked loads of questions at last year's AGM. I didn't this time partly because 'my' shares are in probate limbo this year so I only attended the AGM as a guest and seem to have only had "listen to AGM" enabled - the "submit a question button" was non functional for guests. In any case in the previous year, my questions submitted in advance, on behalf of a shareholder, were paraphrased to be more the type of question they preferred to answer.
The most interesting things to ask about are all share price sensitive, so they can't answer those. Anything commercially sensitive to do with relations with the KRG, you can't really expect them to answer. I was too busy this year to submit any questions in advance, except in an email where I asked for a copy of the old bye-laws pre-2019. I asked when the PSC expired. Answer mid 2043.
Questions I submitted in advance last year were:
Can you explain, given the low share and oil price at the time you signed off the 2019 Final Results, how purchases of GKP shares at times of high oil prices, for holding in Treasury, are, at times of low oil prices, value-accretive to me? (I now know my relative did benefit because it enabled them to get in at a lower price than they otherwise would have; but for the person selling to my relative, their sale price at the time was lower than it otherwise would have been, but for the share buyback). The article that explains how value is destroyed when overvalued shares are bought back is Phil Oakley' article on 08 03 19 in IC called Buybacks versus dividends – which is best?
Does the requirement to show deference and respect to a production licensing authority require you to give them unlimited interest free credit to the point where it increases the liquidity and dilution risk so much that it leaves your shareholders with almost worthless shares?
Is that the reason you have not personally invested in your shares, particularly when your business model incorporates three different types of gearing, all driven by the oil price, and when there is a contango on the oil price curve and when you say value creation for your shareholders is one of your goals? (Now I understand the PSC better, I realise I should have bought oil instead of GKP shares.
How much further capital expenditure is required now to reach 55,000 bopd?
Does the PSC time-limit you to how much oil you can produce from Shaikan and if so does this incentivise our host country to delay production expansion plans? Does the OPEC+ agreement hinder our production expansion plans? What is the constraining factor in expanding production?
Can you assure me that no further significant capital expenditure is required to maintain current production levels? Are the wells’ natural decline rates an ongoing problem, requiring constant high expenditure?
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