All valid questions which deserve answers from Treaty.
I am only a retired oil man with 30 years experience in an international oil major.
In the oil major I worked for (mkt cap approx $10t), we had a lot more money than Treaty (mkt cap approx $10m), but in the oil major I worked for heads would have rolled if we:
- Changed company strategy from a focus on old field reactivation (low cost, low risk, low reward) to international wildcat exploration (high cost, high risk, high reward) without shareholder approval (like Treaty did)
- Increased Authorised Share Capital many times and many fold without prior shareholder approval and used the shares to pay for services (like Treaty did)
- Wasted shareholders money buying a lot of things that weren't used to make oil or money (Treaty purhased 3-4 drilling rigs before finding the right one I understand)
- Didn't do a seismic survey and adequate geological studies (IMO)to increase the chance of finding oil during subsequent exploration drilling (like Treaty did)
- Started drilling a well with equipment and procedures not in line with international oil industry standards (San Juan #2). Then left the same well for many months after drilling before logging and casing and no surprise it collapsed (like Treaty did - IMO Treaty wasted all the investment in this well due to incompetence)
- Shipped all equipment and drill crew from US when equipment was available locally (like Treaty did and IMO Treaty wasted a lot of Shareholder money flying the drill crew to and from the USA at shareholder expense while teething problems were sorted out)
- Purchased things that other oil companies normally rent (like the Treaty logging unit parked in Belize)
- Employed people who didn't know what they were doing (like Treaty did - in my view Brian Luczywo and Steve York were perfect examples of this)
- Made premature announcements that were then contradicted by the Government of the country we were working in (like Treaty did)
- Hived off people and assets into a subsidiary and then disposing of it (like Treaty did [maybe] with Treaty Energy Drilling) without prior approval of shareholders and reporting the impact of this whole transaction properly in accounting terms prior to doing it and then in quarterly and annual reports after it was done
- Were late in filing Quarterly and Annual reports (just once late is too often IMO but Treaty are always late and gettig later and later)
While Treaty's original entry deal in Belize was innovative and now in Belize Princess/Treaty are at last doing a professional job, someone must be help accountable for all the above management mistakes. IMO.
Shareholder value is increased by good management and operations.
