agm concerns and ppp future...., page-2

Jayinaussie..... I admire your jaundiced perception of PPP.

I will chuck you a few of my observations and you can consider them along with any other bits of information you care to add into your mix of things you want to take on board.

1) It is true that many shareholders (or HC posters) were overjoyed at seeing PPP apparently branching out on its own. Many probably did not read the fine print too closely.
Their anticpation turned to euphoria when Ca Dong Rong struck oil. PPP could do no wrong.

Whoops hang on perhaps it could. Reality began to sink into the market as the fine print loomed a little larger.

Why did so many vote in favour of the Directors. You have checked the holdings of the major shareholders ? Have a check of the top 20 and how many shares do they control.
I'm sure they feel the Directors have done well for them.

2) Was such a big success ? Who says it was ?
Having to snatch a possible 5% of the Block on the eve of the AGM does tend to be a bit of dampner on spirits.
Yes, of course there is doubt. Of course there is still an element of uncertainty about the finality of the 5%.
I would have been surprised if it had exceeded 50c after the AGM quit frankly. 5% did not do it for me.
Pure speculation!

3)Yep the Directors and their friends have a lot of votes ! Reality check time !

4) You are expecting the Directors to be honest and open in a business environment ? to reveal that they could be shafted on this deal ? That they could be getting into some shonky deal that they may end up with egg on their face and shareholders who get gung ho about the wonderful efforts of their Directors might end up flat on their faces ??????
Yes it would be nice to experience some openness and honesty. Hmmmmmmmmmm.
Oh well -never mind. It was a nice thought.

5) Oh there are posts aplenty in the past jayinaussie. Believe me. There have been many disparaging comments about PPP management earlier this year. Of course there were certain changes at the top with the introduction of Mr Tom Prudence and the replacement of Tony Radford as Chairman and then the addition of two more Directors. A number of HC posters waxed lyrical about the skills the new men brought to the mix. The Vietnam foray was attributed to this new thinking.
If you go back far enough you will find some barbed comment comments. Just yesterday Dargie(though he no longer holds) made one of his caustic comments about PPP management and lack of disclosure.
Keep your attenae adjusted jayinaussie.

6) "yet it seems a lot of their future production lies in finding some more commercial oil."
Ah the value of some research is beginning to show through !

Yes jayinaussie. That is the nature of the situation. That is what it is all about.
PPP was seen as attractive because it had a lot of cash (cf with many juniors following the GFC who were in debt) and it had a strong cashflow continuing from its productive asset = TUI.

Now TUI is still good in its present configuration for some years to come though on a diminishing basis.
Targetting about atotal of 5 mmbo this finacial year (PPP's share therefore about 500,000 barrels)
Next financial year it will be down a bit again. Again I refer you to the NZOG website where all details about TUI are well set out.

But, as I have said before, all that could be turned on its head if the drilling of the near Tui structures early next year proves up one or more commercial find. That provides PPP with the quickest benefit in terms of increasing cashflow again. Success will be quickly (maybe less than a year) followed by putting that into production through existing Tui facilities.

PPP, despite its positives, is still very much dependent on backing up its form with results.
The potential appears to be there. It appears to have a number of really strong prospects to be tested.

But if they all turn out to be dusters then PPP will be reduced to its one productive asset in essence if we are realistic.

Okay Block 07/03 does seem to suggest that it is less likely to be a duster. But if the second well turns out to be uneconomic or less attractive than the first then Premier may just put Block 07/03 on hold.

IMHO Premier is going to drill this second well in a structuure close to the first well to see if it can get similar results. If it does then that may hasten a development of the two wells into a producing operation.

Conversely, if the second well does not seem to offer much then Premier is less likely to rush ahead with trying to develop a facility to produce just from Ca Dong Rong.
Just my opinion of course.

So PPP is not perfect. It is not the answer to every shareholders dream.
But it does have some appeal
It does have some prospects

But it does not come with solid gold guarantees of success.

You take your chances .....warts and all.

Now I have probably given you jayinaussire enough of an earbashing and enough of my opinion to last you a lifetime.
There you have it.
Take it or leave it