Firstly I believe there is imminent news that may provide share price support and potentially upwards movement
1. SD spud 2. Bongo stabilised rates 3. FP 3d siesmic results with resulting farm out of 20%+
Each one of these announcement could result in a few ticks up subject to the materiality of each announcement (and this is all in the next few weeks)
Secondly a 2.5c share price is a market cap of $29m compared to current market cap of $17.5m. Given the potential reserve size of each project they have a share in as indicated in their presentation I for one would be very disappointed if thats all the company is worth in 2 years time. If they have some luck, good management, and right market conditions I would expect 2.5 this year (early!)
However saying that I have no problem at all with directors getting options so they have considerable skin in the game especially if this is in lieu of salary (which it should be for small specs). I would like to see some restriction in selling and see them vested after say 12 months from expiry though.
In summary - support options to directors, but would like to see a higher strike price - seems to oppotunistic to issue options at current lows - and a holding period.
Would also like to see more salary at risk for the CEO based on performance targets (mix of options and cash).
Cheers
Maddoc
VIL Price at posting:
1.5¢ Sentiment: Hold Disclosure: Held
