HDR hardman resources limited

relinguishments & jv exits - xmagx

  1. 2,631 Posts.
    lightbulb Created with Sketch. 17
    xmagx & others

    I agree with the general tone of posts after today's dull announcement. I have been trying to understand what logic could lead to the dearth of information flow. I recall reflecting that during 2002-2003, there was a similar phenomenon when WPL in particular, was extremely conservative in its analysis. At that time many like me were annoyed, but it transpired that there were undisclosed similtaneous negotiations going on by ENI-Agip about them exiting the JV. Therefore it was my opinion that because of the JV pre-emptive rights there was a deliberate strategy to minimise the price that ENI would get, and therefore that would have to be paid under the preemption.

    Could the same principal be applying now? Could one of the JV partners in any of the blocks be looking to exit during what appears to be an indifferent wildcat drilling season? Pure speculation on my part, but I can't think of any other explanation.

    I do recall Scott Spencer commenting at the Melbourne briefing that there are often significant commercial reasons why more [technical] information is not communicated to shareholders.

    The other possibility could be that they are trying to buy some time with the government to extend the date they have to decide to relinguish some of the territory. I know xmagx did some excellent work on researching that...would you care to make a comment?

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.