For the record AP excused himself , due to conflict of interest & passed to Mchael Sandy to put forward resolutions 5 & 6.. And to be honest the screenshot above is about as clear as it was yesterday in attendance without my classes I'm afraid.. For as I reported to another poster earlier I thought all resolutions carried, obviously not...
All in all there were maybe 20 people at the AGM yesterday, I was one of them.. Dare I ask how many here went along as well?
AP, for his part was a little contrite at times and enthusiastic at others (that's drilling in O&G) and whilst they haven't written off Zapato yet, they didn't calim it as a success for obvious reasons but one thing AP did do was point to this chart of the overall yearly performance.
Depending on entry point some made nearly 10x during the year and those who got in early (one punter had been in since 1c whom I spoke to) are still recording a 110% gain.
Yes things could have been better & yes the SP has receded from the highs for all manner of reasons, but Fur Coat can we concentrate on what was achieved before ya'll go calling for heads.
12 Months ago no-one had this sitting in the bank.... No one.
Yes the market doesn't recognize the fact and AP accepts some of the responsibility for that, but it hasn't gone away, nor disappeared as he pointed out and upon flow testing, guess what?.
Which means currently the market values the 80mmbo to MAY at $1.76 a barrel.. Let that soak in for a minute..
If anyone is smart enough to realise the disconnect between value and price then the picture may look a little different to how it's being portrayed. IMO
Notes & Takeaways:
Rig.. Currently the crews are off having a break and the rig requires maintenance as it's been drilling for 15months. Some components require regulatory testing due to compliance and this will all be done in this window with a view to being back on the pad at Alameda in Feb.
Drilling & Testing: It is anticipated drilling will take 30 days to get to the upper level zone targeted for testing upon which they will flow, monitor, shut-in, monitor and flow again to determine how the well performs. Both production profile & oil quality are key to well field planning.
Payzones: They are keen to see what the results bring because the areas that had the highest influxes of oil were also the ones that unfortunately washed out during drilling and hence couldn't be accurately recorded, as VOGC may have alluded to, so there is potential for even more pay zone.
Recovery: I asked the question of recovery & AP threw to Peter Strickland the Geo Physicist who rather excitedly re-iterated the fact McDaniels (A Canadian company who are world renowned and who do a lot of work with Sherritt) were rather prudent in their appraisal in using old Varadero rates and that when considering global recovery rates for carbonate reservoirs sitting between 7-65%, the fact the oil seen in the upper sheet wasn't like honey meant there is a possibility the recovery rate could double should the flow tests dictate.
So if you think 80mmbo is cheap, well then ??
There are two wells planned at Alameda and then other step out wells may follow, depending on results.
Currently there is only 1 rig but they are in negotiations with a view to try and procure more for well field development.
Sherritt will be retained for the next operation off the Alameda pad, although they haven't been formally signed yet. AP is heading to Cuba as we speak to discuss all this and set the wheels in motion and ink contracts in conjunction with the JV partner, Cupet & Sherritt.
All development plans will be covered by the current cash at bank & AP sees no need to raise for up to 2 years as the costs are covered, unless anything changes. So no more dilutionary hands in pockets.
Production: Once testing is complete for the first well it will be left on in a pre-production capacity. Still some details to work out here and they will be part of the plans AP is off to Cuba to formalise.
Zapato: They were tantalizingly close and have not abandoned the well but are looking at all the new data and will appraise that plus a possible return in the future. They still believe that the area in question is the source of the Motembo light oil field.
AP also talked a lot to this cartoon depiction (his words) and how in targeting the 3 formations they had drilled a slightly deviated well. Which meant that they'd intercepted alameda down dip and hence there was possibly an opportunity to place another well further up dip to take advantage of the sheer size of the reservoir.
Size being one of the most important things they reiterated all meeting.. That what has been achieved here at Alameda, for an onshore well, is world class in the total value of oil in place and near unheard of except for a few other locations around the world. The majority of major oil finds these days being off shore.
So look I get everyone's frustration that the SP isn't sky high, but to be honest I can also see the massive disconnect between what is currently in hand and what the market values it at and therefore might ask some of those calling for blood to sit back and take stock for a minute at just what has been achieved, more so than what the market currently says it's worth.
That will happen soon enough.. Along with all the woohooing, and rocketships and lambo quotes that go with it no doubt.
For now though, if it were me, I wouldn't be saying a word... hehehe
And if you want to complain to the man at least take the time to go to the meeting. Just sayin
H8tey
