More on the AGM today. Like Alecfra I attended the AGM as well.
Chairman spoke… All resolutions were passed, pretty much unopposed.
Resolution-3 re election of Greg Harvey – had some opposition re remuneration. This was explained that it is not normally the role of a non-executive director the raise capital. Greg had landed a ‘corner stone Swiss investor’ and should be remunerated accordingly.
Major achievements throughout the year. 1/. Goldman Sachs – groom MAE for sale. 2/. Acquiring the ODY asset. 3/. Larger register means greater liquidity.
Major disappointments throughout the year 1/. Hydrates – should have anticipated it but according the Jeff - shit happens. Sorry these things happen, unavoidable.
Finally the Q&A with Jeff, - that’s why we all came. Jeff didn’t seem his usual buoyant self as in other years, however he still knows his stuff and gave a good presentation on MAE. He still is in my opinion the only one that knows what’s going on inside MAE.
What follows is all according to Jeff,
Part-2 of the reserves report will be published as soon as soon as stabilized flow rate can be achieved. Reserves announcement next 2-3 weeks. Pretty much polish for Goldman Sachs to use.
Imminent announcement, Flow rate announcement by late this week or next week. Meeting both of these will allow Goldman Sachs to hunt for a buyer.
Financials. Outgoings are running at $1.250 mil a month. Breakeven, production needs to be 7.5 mmcf per day. Will not run out of money – ie become insolvent. Both Chairman & Jeff positive about that.
Hydrate problems have essentially been overcome. Expect initial flow rate of 15 mmcf to 20mmcf by xmas. Emphasis on bringing the wells online very very very slowly. Someone asked Jeff where did the 20mmcf per day come from. Jeff said, that’s what I expect it to be. Seem to be no great science in the answer just an achievable figure he said.
Dewatering still going on and on and on however, by years end it will, would, should, could be complete.
Main strategic message on drilling – there will be NO more drilling planned - all efforts on production.
Jeff said there could still be a buyer for the Oklahoma asset, Macquarie to assist in sale. Potential sale in 2-3 weeks. Watch this space.
And lastly I managed to get a hand full of Sofitel pens and some Kools mints.
Hope this helps... Gonesolow.
MAE Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
