Some more info the conference...
This one is fro cheeky chappie...
I have a bit of time now between changing trains going home.
My feeling is that PL was and has been seriously rattled by firstly the reactions of the shareholders and the copious amounts of ever increasingy abusive emails he has received. He started off the meeting essentially wanting to address shareholder discomfort and also with the realisation that more needs to be done to enhance shareholder value. Secondly, he also gave he impression that he was very pissed off with the amount of trading (CFD's and spread betting) that is currently occurring and this is starting to shape the forward corporate structure.
Highlights are a very comprehensive talk by Eastman. Trinidad, in case anyone has not realised it is the jewel in the crown. Much more to come, and now that have made assurances that the teething problems over the past 12 months had not been factored into the timescales and PL admitted that her most certainly had not managed expectations. The assurance is that everything seems to be progressing smoothly now, and the future drilling programme should now run to schedule. personal opinion is that PL will not over egg the custard any more - lessons have been learnt.
Georgia - this is now a 3 year proposal. The tie in with GIG has meant that they are now converting 2 power stations to natural gas from coal, as coal is becoming an issue in mining dur to increasing levels of methane encountered. This bodes well for RRL as they will have an immediate and lucrative market. However, don't count the wonga yet, this will take time, but when on line it's a good one.
Colombia - just under 8m barrels ready to go, and this will help fund the remainder of the play there, and by all accounts it is a good one.
Texas - this needs to be sold in order to fund an open market share buy back. The buy back is going to help by reducing the shares in issue by about 10% but this is just my back of the envelope maths. However. Far as PL is concerned, anything to reduce the liquidity of shares and cease trading is a good thing, and I agree with him. If Texas is not sold, then the open market share buy back will become an issue, but Texas may be sold within about 3 months. Offers expected in the next 6 weeks or so. He will take about 40-50m US$.
There will certainly be a certain amount of new debt undertaken, but this will be sought to allow a payback starting only after 18 months of no payments, by which time Trinidad will have ramped up production Ironer to make this payback a simple excessive.
Puntland - the aim is to have this and offshore spun out into another company in whic holding shareholders will get an in specie stake in the new company. It will then be up to the shareholders to see if they want to hold or to sell. However the main reason for this is thatPL and the bOard see that the only way to progress in the USA is for the shackles of Somalia to be divorced from the RRL portfolio as the USA chaps prefer the Trinidad and Colombia plays. I spoke to Eastman after and he seemed to be very buoyant about Puntland.
Stock mailer - total cock up. Not going out and they are looking at other methods of reaching out to the USA market. My feeling is that this will not happen until after Puntland h been hived off into the new company.
I have to go now, but if you want my overriding opinion on tonight - IF YOU WANT TO SEE A SUBSTANTIAL RETURN, THEN YOU NEED TO BE IN THIS SHARE FOR ABOUT 3 YEARS.
I am going to be there and if anything this has now confirmed and realigned my timelines. Sure the price should be higher, but it is not going to happen overnight to the levels banded about in the past until the corporate side of things has been sorted.
Anyhow, have to go now as next train is coming. I hope that this helped. I will try to answer any questions if anyone has some.
All the best
Cheekie chappie
