selling has finished on ggp - up from here, page-35

Hi LWR,

The actual view on this company is starting to be seen by shareholders.

The best well in the Permian to date is SRH 3. At least is has been on production the longest.
According to the company it has been on production since March 2012 and has produced 16,000 BOE to date. That equates to approximate GROSS revenue before some costs of $670,000. The company has stated the well cost approximately $1,500,000 to complete and ready for production. So 16 months down on the best well in the PB and its still to return half the money back on a gross basis. Management knew these figures and PB performance before the entitlement issue so it appears a dammed if you do dammed if you don`t position. A poker game with shareholders that they expected to participate in shares that at the time were trading above the entitlement price.
By proceeding the wages and fee stream to director related companies continues.

Directors of companies buy shares for a wide variety of reasons. History shows that their investment decisions can be very poor indeed even when they are good managers of the company. In this case FP and Steve Gravy brought shares at 2.1 cents over one year ago.It would be save to say now that was not a good investment decision. So at least one bad investment decision by two directors. The other director at the time Frank Brophy never brought any shares.

Purchases of shares by Directors of GGP has been an encouragement to shareholders to participate in entitlement issues and share purchases. This maintains the flow of wages and the fee stream to director relates companies.

In the case of SG`s recent 5 million purchase it equates to one and half weeks of the wage this company pays him. This has been his biggest single purchase under his wifes name he has made.

So SRH 3 is showing that it will take 3 years to reach its cost just on a gross revenue basis when the decline curve is taken into account. The company has announced a much shorter payback to the market and has never adjusted this market statement although not one of the 4 verticals currently on production is close to supporting that announcement. They are not even close.