senoj.At the end of the day we invested in a team that were not...

senoj.
At the end of the day we invested in a team that were not capable of delivering results. The risk is still on and the market has punished accordingly.

Here's a recent conversation with Steve, if it helps...

"The game plan is to preserve as much of our remaining cash as possible and not have a repeat of 2012. When I joined the company in January, I reviewed Molopo’s business and operations and concluded that the company should look to have someone else spend capital in our Wolfcamp play in Texas; so we are soliciting proposals for either a joint venture or a sale of the asset. While the project still holds strong potential, it simply is still too risky to be the focal point of Molopo at this time. The result of that process will be either more cash coming into the company (if we sell it), or an opportunity to continue participating in the project but through the efforts of a joint venture partner who will be responsible for spending most of the capital.

We are going through similar processes with our assets in for Saskatchewan and South Africa.

The government of Quebec has extended the moratorium of fracking without any definitive resolution in sight, so we will retain those drilling rights without needing to incur any capital costs.

While this process is being moved forward, I have reduced the company’s expenses by letting a number of people go. The headcount is now down by about 40%; a level that I feel is reflective of where we need to be at the moment.

The valuation proposition that I would now present to shareholders like yourself is that with Molopo trading at cash backing, there is a meaningful chunk of value not being recognized in its oil and gas assets; we hope to have that reflected in the share price once we get through the processes I've noted above.

Potential use of our cash could be: a dividend to shareholders; a share buy-back; deployment back into the Wolfcamp, if we have a joint venture partner that proposes a drilling program that we believe will yield better results than the one we achieved; deployment into the creation of a new project area; or a combination of the above."