Ann: Results of General Meeting , page-18

Hi all,

sorry for the delay but I see others have given their interpritation and feelings on the meeting.I have spent some time on just going through my post making sure I am not posting any mistakes.I'm sure others will pick me up on them if I have.


Firstly let me say it was great to meet some of our HCites at the meeting. I did a count and there were 23 all up plus 3 company reps. Not sure how many came from Novus but I suspect they tried to do a little stacking ?? Just my observation. Tom Booth from Novus was there also.the resolutions 1 - 6 didn't really raise a any concerns with anyone from memory ??



The meeting didn't get too emotional from what I could see, no baseball bats were needed, but I am sure some felt like they wanted to use one.I introduced myself to CR and he told me that Steve Graves was on his way from the US to attend the meeting but his plane had some sort of mechanical issue and was cancelled.He also had ( from memory ) some finance meetings to go to ??




I will go through what I wrote down as the meeting progressed and hopefully I haven't missed anything. I will not say who asked what questions and I will not reveal any one's identity from here.the meeting went for 1:45 as there were quite a lot of questions asked from the floor.Please remember this is my interpretation on what was presented at the meeting. I sincerely do not wish to misinterpret anything that was answered,nor do I have any authority to give anyone that reads my post financial guidance.most of all, my post is not meant to belittle anyone from the company nor any shareholder at the meeting.




The companies ability to communicate to the market was brought up and in no uncertain terms, Frank, Frank and Chris were told by a few it needs to improve as there are a lot of pissed off SH's out there with their lack of communication.Frank Petruzzelli said he would take our concerns on board. Let's see ?? Some slides were presented and the directors really tried their best to sell the future of the coy through this Hori well.




This is in order as the meeting went on.

1; Confirmation that GGP has shifted from Explorer status to Producer. ( had to start with a positive )


2; When a Company Ann refers to an IP it is referring to a 30 day IP ( unless stated otherwise )


3; Fausse Point project. I asked the question, will GGP be considering their future in this project. I wasn't given a conclusive answer so I am at a loss as to the future of the project. It would not surprise me if we offloaded it.( my interpretation only )



4; A reserves report was asked about. This was spoken about on numerous occasions.It was quite a contentious topic, especially after it was mentioned that the company announced an independent reserve report was initiated last November. Anyway Frank Brothy ( Director & Geologist ) stated that the company cannot release a reserves report until it has at least 3 - 4 hori's drilled and running. Like I mentioned this was a hot topic as it was then put to the coy reps that we can get a reserves report done on 4 producing verticals.This conversation carried on and to be honest I am still at a loss as to the coy's position on this. This was just one item which was not explained with great conviction nor was any of the coy reps decisive when other SH's questioned them on this point.



5; our 4 current verticals are all " test wells " as stated by Frank Petruzzelli



6; The question of the 25% claim from the previous owners contract agreement which was supposedly transferable when GGP took over the leases was asked. Frank Petruzzelli could not go into detail ( understandable ) but did say any court proceedings which may or may not be happening does NOT involve GGP at this stage. He also stated it will likely take 3 - 5 years to be sorted IF it continues. So my understanding of that subject is that there are no finances currently being used by GGP on this matter. It is out of GGP's hands at this stage.




7; The topic of which intervals were NOT available to GGP in our acreage was asked ( spraberry was specifically talked about ) This is where I held my breath ( not the first time I did during the meeting ) while the two Frank's stumbled their way through answering a pretty simple question. Frank Petruzzelli answered by saying that the Spraberry was not an interval that GGP could access at all. This sent shivers down my spine and all the way into my finger tips( hope thats dramatic enough,lol ) because I thought someone needs to tell them where our verticals have been feeding from.Then Frank Brophy joined in on the answering trying to get his mate out of a bit of, well, hum how can I say, a spot of bother.It was eventually answered in a very difficult and some what embarrassing way that each individual well that is drilled will entail it's own specific intervals. In other words, some will have access to the Spraberry and some will not. Some will have access to the Wolfcamp or Cline and some will not.I don't know why it was such a awkward question to answer as there were a few moments of silence during that answer. ( my interpretation once again )




8; The infamous JV was mentioned and sadly at this stage, there are no firm dealings happening, stressing, "at this stage" . Frank Petruzzelli answered this one and not a lot of detail was divulged. Numerous people pushed the question and Frank basically said that the negotiations were confidential and he could not divulged great deal. I asked if the issue of "operator status" was an issue and he said yes, and other things similar to this were sticking points.




9; There was someone from the floor ( I won't divulge who ) who put forward a resolution. It was suggested by this person that the company introduce a "non-conversion" period of 6 month's with the Resolution 7 notes. Personally I thought this was an excellent and very fair resolution to put forward and one which would appease a lot of frustrated and disappointed share holders. With this non-conversion period, the Note holders wouldn't of had the need to drive down the SP to manipulate a lower VWAP in their conversion.This was a very big and from what I can gather from the meeting,the main concern and sticking point with long term shareholders, I repeat shareholders and not D/T's.




The meeting was called to a 5 min break while the 3 company reps discussed this proposal. ( I didn't take notice if Tom Booth or any other Novus rep was in the room or with the coy reps at all, but there were SH's in the room at the time. My point being is that I am not sure if Novus had any say in this proposal at all ? I seriously hope that did not happen !




Anyway history will show that it didn't get up, so we did try our best.



10; Resolution 7 First, let me say it's been more than 20 years since I was at a meeting like this and let me tell you, if ever you go and it is expected a show of hands is needed, you should sit at the back of the room to validate the count. Not suggesting anything sly went on but you all know how some people can't count.

Yes it was a 5 - 5 count and Frank P chose not to cast his deciding vote, why not I'm at a loss, possibly because he new the amendment to this $10 mill to a $5 mill CN issue. He claimed that there were no other options available to the company ??? and where the extra 60 mill or so came from to get them across the line I'm not sure ?. That final poll count took place when the meeting was closed and it was tallied up by the Advanced share registry reps. Unfortunately, I don't or didn't know the ropes well enough to be present to validate that count, lesson learnt and I will certainly remember this if the need ever rises again.I can tell you all for certain that the point of any note holders,prospective note holders or Novus connected attendees were NOT eligible to cast a vote ! This point was put across very very firmly across to Frank P. The other $5 mill will be raised via a SPP ( from memory ) sorry, surprised it hasn't been released ??



So that's pretty much it from what I remember and what I have written down through the meeting.Personally, I really didn't get a lot of confidence from the directors body language and the way some of the questions were answered.I understand they can not divulge a lot of information but sometimes it's not what is said but how it is said.A forward plan for the company was asked about and let me tell you, I am still none the wiser with the coy's plan after the first hori.



I have decided to hold for now as I am still quite excited with the assets the coy has.Oh, and I can't afford to take a big loss right now,haha. long way to go yet with this one and I am sure the coy now knows that the shareholders are determined to see them earn their very generous packages.I did have some quiet discussions with others there and some want change, change in a lot of areas,so lets see what unfolds leading up to the AGM.

If anyone else who was at the meeting finds some errors in my post please correct me.Been a long day but very glad I had the opportunity to attend. I hope more share holders attend the AGM as I know that behind the scenes, there are some who are determined to see this company move forward, no matter what it takes.

cheers