The share price is what it is, and right now it’s a joke.Whilst...

The share price is what it is, and right now it’s a joke.

Whilst there were few headline achievements in2023, except

Drilling the best well in SWISH
Operating a successful producer in a new AOI
The IDR report proving the SWISH has significant value
Increasing SWISH Acreage by over 25 %
Rebuilding cash back to~ $ 30 million
Buying back close to 5% of issued equity

all laying the groundwork for the start of a drilling program based on the learnings from offset operators which is the first step in realising that inground value.


A long winded oil/ property analogy.


In realestate terms, David originally was going to buy the old tomato farm block, subdivide into numerous stages and build one house in each stage to prove it will be a profitable value add, keep it for rent and sell the other subdivded blocks. It was initially expected to take ~ 4 years from finding the land to start the selling the subdivisions.

But the realestate market changed during the time the land was acquired and subdivided, flipping blocks wasn’t as profitable as the developers stopped paying the premium prices they used to, but the guys next door developed their land in a way which was much cheaper and faster, which made building, retaining and renting the newly built houses much more profitable than any previous developments.

This occurred while David was asking for expressions of interest from interested parties to see if anyone wanted to buy the whole lot or come in as partners in a JV to start the first stage of the development. David also modelled what the returns would look like if he developed the first stage by himself.

The offers to buy the whole lot were unsurprisingly low given the times, the partners for JV pretty well had enough cash, but nothing else in terms of expertise that could add value…and the modelling showed that for the first stage, he would make the most money buy building the houses to rent.

This much maligned business made enough money that he could fund the full development of the first stage from the rent from the initial houses,even while he bought out a few of his smaller business partners

The graders are currently preparing the land for the commencement of the build, which is expected to take ~9 months .

This is where we are now.

Many of the small businesses partners thought they would get a quick return on flipping the subdivisions, as that was the thrust of earlier marketing . But the market and circumstances changed, so flipping no longer was the preferred option. A lot of these partners decided to sell out along the way,some being disappointed in the time taken for predevelopment, some miscommunication and a lot of frustration at a lack of valuation of David’s company.

David will develop the next stage, by himself or with a partner, which will depend on circumstances when that decision is made.

There will be a significant increase in value and cash generation after each stage and a concurrent search for more , potentially large land positions along the way.


If this is Rose Coloured glasses then so be it.