Hello all,
Thought it would be useful to transcribe to BRR interview so that everyone is clear as to exactly what was said and what wasn't said, as I am sure people will be keen to discuss over the weekend.
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Today on Boardroom radio we are joined by Mr Mark Smyth, CEO of Cityview.
Mark, good to have you back on Boardroom Radio.
Good Morning Jamie
I was very interested in your overview of Cityview’s mineral concessions which you lodged with the ASX on Wednesday, Mark, can you please explain how Cityview will gain control of Fortitude?
Jamie, you will notice in the overview that there are 62 Fortitude shareholders, many of whom are Angolans. A Lot of these shareholders have asked if we would be willing to exchange Cityview for their Fortitude shares. I have replied that we are only prepared to do this on the basis that the price of a Cityview share is 30 cents and they have agreed to this price. We will therefore include in the agenda for our AGM in May a request for Cityview shareholders to approve an allotment of shares on a formulae of 30 cents per Cityview share. This will lift our holding in Fortitude to a controlling interest.
And now for the big question Mark – how are your technical guys progressing with their assessment of the four offshore blocks, 15, 17, 18 and 6.
Jamie, the team are still finishing off their review but everything is going exactly as I’d hoped for. The four blocks have mega potential and it is now a question of how we handle the economics. We are using a base oil price of $70/barrel and assuming we will receive cash flow within 6 years. We have a $100M facility in place already and will have to expand this facility to cover the extra capital commitments. Initially, I thought we had until the end of March to work everything out but in fact we have more time up our sleeve to organize the finance. Apart from being a great investment participation in this venture locks Cityview in with its Angolan partners. As soon as we can our team will start work on assessing the whole onshore Kwanza basin to ensure that we participate in the best permits this year.
And finally Mark, can you please tell us what is happening with your Matanda block in Cameroon.
Jamie, the key person we are dealing with in Cameroon has been sick, so we have not been able to get on with the negotiations. This has given us, actually, valuable breathing space as we have been overwhelmed with the volume of work coming out of Angola. We will however resume negotiations soon and work out the best format for Cityview. What I want to do is leverage our existing contract into a bigger scenario. In Angola, Cityview has progressed way beyond what we were talking about a year ago and we are now entering the big league. We have to do the same thing in Cameroon.
Mark Smyth – thankyou for joining us on Boardroom Radio.
Thankyou Jamie.
That has been Mr Mark Smyth, CEO of Cityview on Boardroom Radio.
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All the best, and have a good weekend.
boardroom radio transcript...
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