Ann: Company Update, page-43

Overall a great presentation, well laid out and summarises the state of play.

Slide 28 is very positive in my mind  (bold my emphasis):

Vic /P47 Opportunity ​

​

The Board has had approaches from several industry players in respect to dealing at a corporate or JV level with its Vic /P47 asset. It has executed NDAs with some and provided access to its data for evaluation. ​

​

This includes a written non-binding proposal which the Board currently considers inadequate. The Board has suggested to that party that acceptable terms should be based on a structure involving an up-front cash payment, free carry through to gas production, and a cash-payment upon commercial initial gas production testing.​

​

​

Some great external validation that Judith is an asset worth something.  If the company can strike a deal with a sensible upfront cash payment, with an ongoing royalty and no further obligations that would be quite something. Given the spend for exploration alone  that the likes of Exon mobile have made in the area over the last few months, one wonders what quantum of cash this might be.

With all that said, other slides, seem to indicate the board is considering spending the spoils of Judith on alternative projects never before mentioned.  Potentially purchasing or JVing in a Diesel/BioDeisel refinery.

I don't know much about oil refineries, but I assume they are expensive to buy.  The slides mention refurbishment, and the summary slide says "previously operational" so sounds like whatever they are looking at doesn't even function at the moment.

It reads as if the spoils of Judith are looking for a new home already.  I am very glad that the company has said the company will seek shareholder approval for any deal. Because I don't want any cash that comes from Judith to be sent straight back out the door.  


Googling I can only find one Bio Desiel refinery place in Moama.  The news reports seem to say it was closed down and I can't see anything to say its back online. Makes me quite anxious as to what asset the company is looking at.

Time to keep digging by the looks.