Notes from the AGM in consultation with @Barranut and @Wilko16
Thanks boys, great to meet you.
There were only 6 holders there. One or two in the industry (maybe @VOGC ?) plus us HC rough nuts as well as Scott, Chip Dog and Vicky.
Posting my previous questions with answers and some other info that was discussed. Please don’t take this as an exact record, it’s notes from my phone and the other gents records.
We have had no on ground work since M2 finished and the SP has dropped by 2/3 over the year. Shareholders have had no information as to why this is. Is the PPSA the reason? Is there a standoff over this?
After the failed rights they made the decision to avoid self funding and get a farm in. This will be for 2 years and multi wells. Admitted that the sophs tanked the price due to the time lag with the RI but felt they should go through with it.
2.Are you still planning to deepen M2? All recent announcements recently mention testing. Have long leads and contracts been finalised?
Will deepen in 6 inch. Pricing is mostly agreed at the 40% cheaper mentioned previously for future wells. 3D seismic will come before testing.
3. Is a farm out or finance partner dependent on PPSA? Does it need to be executed first?
Pretty much yes. There will be back costs and he’s very determined that we never go to market. Enough info that well testing isn’t a deal breaker for a partner.
4. Why wasn’t 3D seismic done during the year? We could have been well into processing by now.
Recon have the vibroesis gear since June. Went way over on their drill.
5.Why weren’t the recent director options aligned in price with the Mutapa options?
Were at 50% over current Sp at the time and have to be paid for to exercise. Said their current board aren’t in it for the money but deserve some incentive. SM and Chip Dog have never sold a share.
6. When the $15m was raised a year ago and again in the Mutapa investment, one of the uses of the money was for testing. Is the money still there to do this?
Yes but any unexpected delays in farm in would leave us needing to potentially self fund again. Farm in sounds very close and waiting for PPSA finalised. Mutapa money will be cleared in the next week or so.
New question:
7. With the news today, is the PPSA terms and conditions complete or were there recommendations /amendments by the outside legal which need to be included in the document? Does being ‘finalised for execution’ mean the wording and all clauses are agreed? Is it with Mutapa now to finish? Does it need to go to parliament? Will there be a signing ceremony or similar?
Needs very minor adjustments. Will be put on the ministers desks and told to sign. Yes there will be a signing ceremony.
Other things:
Log data- has to be calibrated with the flow test
Himoinsa research supports high gas prices in the region. Feasibility study news coming.
Monetisation- gas market, info soon looking at export to Zambia copper miners through grid. Less to do with Sable. Purely selling gas, others will generate and sell the power. Possible mid stream partners could do this.
Carbon offset project still a goer. Govt had changed the plans but there will be news soon. Was mentioned in their board meeting yesterday.
Forest was probably the only disappointing target.
Condensate market is growing 25% a year. Potential extra revenue stream.
IVZ Price at posting:
6.9¢ Sentiment: None Disclosure: Held
