RE: AGM - 10 FOREMOST SHAREHOLDER QUESTIONS27 Jun 2022 13:00
Dear Comms Team
I ask that the below questions be directly addressed by the Board at the AGM. This request represents the collective wishes of a significant number of shareholders, arrived at following considerable discussion:-
AGM - 10 FOREMOST SHAREHOLDER QUESTIONS
Why has no apology been proffered, nor acknowledgment of any errors made, regarding the 2021 failed attempted restructuring which would have needlessly diluted shareholdersâ holdings by 95%? It cannot have escaped the Boardâs notice that that action caused shareholder confidence in the Board to evaporate. How does the Board intend to restore shareholder and investor confidence in it? What reassurance can shareholders have that such behaviour will not reoccur?
Do any Board members intend to purchase shares in the company? If not, why? It is commonly accepted that management with âskin in the gameâ other than salary is more likely to be fully aligned with shareholdersâ interests.
Given the most recent P6 well data analysis, until what date does the Board now consider P6 will be economically viable, on a âstand-alone do nothing furtherâ basis, with Brent priced at (i) $100 (ii) $120?
The 205/21a-6 well (well 6) was fitted with 2 ESPs. In March 21 the company switched from the lower of the two pumps in well 6 to the upper pump following a lower pump issue. Does the lower pump still provide backup in the event of upper pump failure? If not, does the company have a costing and % downtime if the pumps need replacing? In the event of unplanned failure, what contingency is in place to minimize production downtime?
When will the remaining outstanding bonds be formally repaid? Post repayment, with significant net cash plus ongoing healthy profits, what specifically will be the companyâs strategy moving forward? In short, what is the companyâs âPlanâ?
Does the company intend to effect a sidetrack of well P7z? If so when, and what is estimated CAPEX? If a sidetrack (P8) is commissioned, is it intended thereafter to drill a water injector well to improve reservoir sweep, and at what CAPEX?
Will continuing gas flaring of well 6 risk extended production? If so, how is it planned to counter this? Also, in light of extensive data now collected, is there an intention to drill another producer well on Lancaster?
Is the company seeking to engage in a corporate transaction whereby it either (i) increases producing assets & relieves itâs single-well dependency? (ii) sells the company and obtains âfair valueâ for itâs historic tax losses? If (ii) what fair value does it assess those tax credits at? And what SP value does it currently place on the company in the event of a sale? Does the company plan to market itself for further investment? If so, how?
Does the company plan to issue dividends, either special or regular? What is OPEX and well 6 flow rate as of today?
Does the company intend to invest the whole of any EPL sum otherwise payable as tax, in order to obtain 9