SXY (ASX) Ann: Senex completes asset portfolio review

Originally posted by tt2000 ↑

Here are some more objective facts about what ID has failed to deliver - except for the first point (which was just about complete at the time of presenting at the Good Oil Conference last year).

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How can a CEO that failed to achieve each of the above deadlines not have anything to answer for?

Worse still, how can he think that the market is not interested in any of the above.

I've presented at Board meetings, and generally Board members are pretty savvy.

ID should show shareholders the same respect that he would give a Board member, and update us with why these deadlines are continuously slipping. There is obviously a reason - why can't it be shared.

The only thing that would explain this and forgive all was if ID was pulling off some acquisition - he did mention 4 weeks ago that they were looking for assets (but I got the feel this was part of his spruiking, much like the supposed 425 wells with project acceleration).

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Granting of the Atlas block would have pushed back all the the timelines in that presso and any of the slides shown to the shareholders before that tender was awarded.

So I wouldn't pay it much attention, it was unachieveable once Atlas was won, it's basically twice as much due diligence for all the banks who wanted to loan Senex money. Of course it's taken longer.

I am also not concerned about the rate of drilling, surely you are aware there is no material gas facility infrastructure at WSGP right now? They are selling to GLNG through GLNG pipelines and with no compression of their own they cannot optimise production from their wells, they are always subjected to the downstream pressure at the GLNG facility. If that is high then the gas production from any well feeding into that pipeline will be depressed. So what would be the point of draining the bank account to drill all these wells before there a loan facility available, nor a compression facility built or possibly pipelines of their own?

ID has also mentioned teething issues with their first phase of production wells, from my point of view I'm glad they haven't drilled more aggressively since that would just be more wells with the same teething issues, not what you want if you are hoping to make money from your gas project instead of making some drilling rig operator rich beyond their wildest dreams.