We have a history of opposing views Steve and largely I haven’t responded for a long time however this time I feel the need say I don’t think you are correct in your thinking albeit it is your opinion.Saying that the only metric is the sp is not what the reason for the Companies existence. The Company was formed to explore for gas in Mongolia and then on sell to a producer. As this has been ongoing due to a longer than planned dewatering process they have also taken the opportunity to find an additional source of gas in Australia which they have also looked to explore and then on sell to a producer. Arguably both of these plays have progressed to an extent beyond the initial phase.
Now respectfully they haven’t progressed as much as the market, yourself or myself would have liked but they have progressed.
It is very clear that financing Mongolia beyond what has been shown to date is a massive challenge, not only for us but our peers. This is a fact not just attributable to Elixir. However they are on a pathway to commerciality in the near term and potential JV or full sale.
Now with Grandis we have delivered on so many of the outcomes that were planned but as others have stated the focus on flow rates has been detrimental to the achievement and the market has not appreciated the poor return regardless of why. Being a junior gives you very low levels of leverage if that wasn’t obvious.
The R & D grant was on the back of new technology and that technology has worked to some degree. Of course there are the expensive proven precedent and current technology of horizontal drilling that will likely be exploited when a jv partner and finances allow going forward.
One can either accept the results to date and see some future with a partner that has an interest and experience or one can say that its all bs and this will never be a reasonable success.
However to just talk poorly about the Management and process of the company after every phase that doesn’t go your way and not just after one phase but after many says so much about yourself than it does about the company.
I am so confident that none of the top shareholders would be pleased with the sp but they are focussed on the business and what it may become understanding that there will be many many lows before the company tracks a pathway to success.
Hence they communicate with Neil like I do as he is very approachable and doesn’t shy away from the tough questions.
I for one wanted to hear from Greg about the situation and lo and behold he along with Neil are making themselves available next week, and I’m looking forward to hearing from them.
Personally I dont think what I say would change how you think although I would like you to get a good result from Elixir as much as I do so I say all of the above to give a different perspective.
All the best! (I sincerely mean that)
