The following has been transcribed from the audio of the March meeting in Sydney and supplied to me by a third party , again I thank him for his valuable assistance.
45:15 CamdenBob addressing RC ” You said that things are on track, that if we can get the NGP filled up with gas, get the gas contracts in place, that we will probably net around $50million a year over a period of ten years, and with that money, we can borrow the money to do the drilling, that is as I understood what you said”.
45:32 RC” Well, what I did say was that if we fill up the pipeline, we should make $50 million, we should make about $50 million a year, $35-$50 million a year, and then ah then to fill up the pipeline would obviously require us to have reserves and that I was going to try and borrow against sales contracts over time. That’s what I did say, and I am not denying it.
51:03 RC ” In order to fill the NGP we need to spend that money, I’ve always maintained we have present reserves that won’t fill the NGP, and I am not resileing from that position either, what I am saying is that as a company we have to make sure that goes ahead and gets all the government approvals.
52:14 CamdenBob” You say you have people coming through the data room, making offers which are stupid, because they will only offer for half the price for half the stock, that is the type of deals”
52:15 RC” No, what they have indicated is that they will give us the information close to the Macquarie bid … they want to see how far the share price drops after there is not a bid”
52:33 CamdenBob” So the real issue then, is you can’t get finance to prove up their costs…irrespective of where it comes from”
RC” the timeframe has now become much more imperative and it’s a much shorter timeframe”
CamdenBob " and that timeframe is?”
RC” As I said, we need to get it(NGP) approved before the next dry season, well and truly in advance of the next dry season, so Jemena can start laying pipe in February next year, …they Jemena need me to drill this year”
55:08 RC” What I am saying, for my shareholders to get the value, this is the timetable I need to do, and if the pipeline does not go ahead, we’re back to being without gas markets and it really doesn’t matter what is on the east coast gas market if there is not a pipeline.”
1:01:51 RC” I have said that I think that we need to raise a substantial amount of money to make a substantial appraisal program in the stairway that would get us to 2P reserves, and that’s more than one well, so were talking about a multiple program, …..it has to be equity, I can’t borrow against it”
1:03:00 RC” let me put it this way, there has been an aboriginal group joining with frac free alliance to try and overturn the land access approval …”
1:04:00 RC” and the only way to avoid that politically is to show that the pipeline is not being built on shale gas .. is my opinion based on conversation I have had”
Now, correct me if I am wrong, but I thought that the problem with the "aboriginal group joining with frac free alliance to try and overturn the land access approval " had been resolved and that it was not required to prove that we were not putting fracked gas through the pipeline.
AND as a consequence, we did not need to obtain and spend the money for drilling.
I accept that the urgent attitude of Mr Cottee to recommend the MB offer was predicated on what he perceived was the only way of overcoming the "aboriginal group and free alliance" problem, and that MB was the only source of funds able to do that.
However, NOW that the "aboriginal group and free alliance" problem has evaporated, such a imperative must no longer be applicable.
UNLESS, as RC says,
"As I said, we need to get it(NGP) approved before the next dry season, well and truly in advance of the next dry season, so Jemena can start laying pipe in February next year, …they Jemena need me to drill this year”
55:08 RC” What I am saying, for my shareholders to get the value, this is the timetable I need to do, and if the pipeline does not go ahead, we’re back to being without gas markets and it really doesn’t matter what is on the east coast gas market if there is not a pipeline.”"
It appears that the REAL urgency was to get drilling done this year (which apparently is no linger needed) so that Jemena can lay pipe in February next year.
If you take the ""aboriginal group and free alliance" out of the equation and that what RC said above; reproduced below, then all we have to do is as RC said
45:15 CamdenBob addressing RC ” You said that things are on track, that if we can get the NGP filled up with gas, get the gas contracts in place, that we will probably net around $50 million a year over a period of ten years, and with that money, we can borrow the money to do the drilling, that is as I understood what you said”
45:32 RC” Well, what I did say was that if we fill up the pipeline, we should make $50 million, we should make about $50 million a year, $35-$50 million a year, and then to fill up the pipeline would obviously require us to have reserves and that I was going to try and borrow against sales contracts over time. That’s what I did say, and I am not denying it.
51:03 RC ” In order to fill the NGP we need to spend that money, I’ve always maintained we have present reserves that won’t fill the NGP, and I am not resileing from that position either, what I am saying is that as a company we have to make sure that goes ahead and gets all the government approvals.
So why has there NOT been an announcement from CTP that the stated reason why the MB offer should be accepted ( ie "aboriginal group and free alliance dispute requiring significant
amounts of money to be spent) has now evaporated.
Clearly that reason is no longer viable, and people should consider it replaced by the financial imperatives of CTP and MB in ensuring that CTP and MB are placed in the position of being able to sign contracts with Jemena.
We are being royally ducked, by the big gorilla.
I went down the road this morning and saw a house for sale looked it up on local agents web site owner wants $750,000 for it. So I thought I would use the Big Gorrila tactics of buying property.
I offered $50,000 for it , for the life of me, dunno why I was hung up on. (Not literal example only)
I say we as shareholders HOLD THE KEY to this impasse.
VOTE NO and require a new board to make decisions that are in the best interests of shareholders.
NOT THE BEST INTERESTS OF MAC BANK.
United we stand and divided we fall.
CB
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