Sorry my note are so late but I was busy at work on Friday and have been busy with Children sporting events today.
Anyway here is what learnt from meeting.
1) The company strategy is to sell out ( at right price) to somebody how has diverse group assets and needs short term cash to fund development their existing resources or replinish existing production.
10 interested parties two dropped out I guess eight remain
2) They plan to keep the NXS shares. Some of these eight buyers are interested in that asset. They feel great knowing what they paid for this asset and what the market values it for today. They said they have understanding with NXS not to damage each others SP and of course NXS wants as much cash back as possible for its shares.
3) They are confident reserves will either stay same or increase. I had chat with AY at end of meeting and he said two things that made hime feel like it was larger.
a) 3D and sidtrack results especially with new sand now 150m higher that known OWC. Basically new sesmic with well results is key that unlocks better understanding BMG. I'm fairly sure he said Basker will be smaller no doubt because of No 6 but Mantra is much larger. Anyway I'm confident that holding from 1.185 is quite OK with production where it is at the moment.
b) They now think that this sand which is much higher than all other sands they may have missed in other wells hence in new Basker development drills they will pay close attention to this sand ( ie it will be evaluated)
4) Reserves statment is 3-4 weeks away
5) If they cannot sell the company they will look at buying assets or buying into existing plays to increase their development pipeline.
6) No dividend until sale or purchase strategy is clear.
Clearly the board and management feel the current SP soesn't reflect tru value stock . Quoted 4-5 transactions over last 6 months that values their shares
I for one will keep holding my 40K shares. Seems only a matter time before new buyer emerges.
AZA
anzon australia limited
