Hi,Attended the AGM, but there was little of specific interest....

Hi,

Attended the AGM, but there was little of specific interest. As usual for these small stocks a very small turnout. Unfortunately McGann wasn't there, too busy in Turkey, which was good, but still dissapointing as I particularly wanted to get an impression of him.

Mark Stowell, a non-exec director, did the presentation. Did a reasonable job for an accountant, seemed switched on. Chris Cronin, the chairman seemed to be very much an active participant in the company. I'd trust these guys.

One specific question raised probably warrants mentioning. They were asked about repatriation of profits. Apparently, although repatriation requires approval (Turkey is very beaurocratic), they do not expect any problems, and currently have an application in. They saw two factors in favour of a smooth approval: 1)Strong support from the Australian government, being the biggest Australian investor in Turkey 2)Strong competition in the region for investment, such that Turkey cannot afford to upset investor confidence.

Directors reasserted their intention to pay 50% of profits out as dividends.

Putting various discussion points together my expectation is that IPM will ensure they are delivering on increased production from Selmo, before embarking on other fields, but that we can certainly expect them to, as soon as they have. I think they see, and will deliver, an exciting train of opportunities in coming years.

Also, I believe it fair to say they see the Selmo field as full of opportunity and poorly managed to date, already refer to it as a "legacy asset", that will provide them with a high cashflow for many years.

A very positive point, given the state of the industry, is that it appears McGann has been able to recruit very well, both for the field management and the technical expertise. IMO this also bodes very well for any eventual expansion beyond Selmo.

In summary, I came away with an increased confidence in the company, and a confidence that everything was going to plan, although with a view that some patience may be required along the way.

Entropylord