Detailed below an extract of my letter sent to the business 9 October, 2017.
I have always considered myself positive towards the Company but feel there are fundamental changes needed. In ~particular flow of information and greater transparency of what is exactly happening on site and in relation to funding. Shareholders “must” be kept informed as things untangle not just after the horse has bolted.
Good Luck All.
Attention : Mr David Casey; Alexander Sundich; Russell Porter; Andrew Williams;
Dear Sirs,
My wife and I are long term shareholders. Unfortunately, in recent times we have begun to question some of the decisions of the Board. In~particular continuing problems with the four well Uruguay project, the necessity for additional funds and the decision by the Board to withhold pertinent information from its shareholders.
On the 1 September 2016 in a letter from Mr David Casey, Managing Director to the market it clearly stated “ we are extremely happy with the level of support we have received throughout the recent funding process but particularly since indicating that along with our partner we had secured funding for the 4 well programme.”
Now, without completing (1) one well we have placed the business under considerable financial strain when shareholders were under the impression the entire 4 well programme was fully funded prior to commencement. We understand the O&G industry is notorious for unforeseen delays and problems but funding should not have been one of them.
Prior to participating in the current Capital Raise (CR) can the Board please clarify the following;
- What is the status of the current operations in Uruguay and has any progress been made since the last Cerro Padilla~1 Update dated 11 September, 2017?
- Is the Company continuing to incur on~going expenses on site in Uruguay whilst the CR is undertaken?
- What action/plan is being implemented to guarantee we do not experience similar problems to those already experienced once the CR has been finalised and operations re~commence?
- Can the business issue a projected cost analysis for each well and a time line for Operations to commence and anticipated completion date for each of the four wells thereby providing shareholders and the market a benchmark to monitor progress of both the project and Management.
- What actions are Management putting in place to inform their shareholders of current activities (good or bad) in a timely and informative manner rather than the existing ad~hoc, selective, incomplete and delayed announcements provided to the market in the past?
Regardless of the nature of the news this has been a fundamental problem and has generated a huge and unnecessary amount of negative sentiment amongst existing shareholders and the wider market. A commitment by Management to become far more transparent with its news flow will be received positively by everyone and will be deemed a positive step forward and an acknowledgement by Management it values its shareholders.
On receipt of the above information and based on the information provided we hope to continue to provide our financial support to the business and willingly participate in the CR. Failure to provide the necessary answers will simply demonstrate to us that the existing Board of Directors do not consider or value its shareholders. We hope this is not the case and trust there is positive news on the way to reward long term shareholders who continue to support you.
We look forward to your reply
