Notwithstanding the apparent potential of the leases held by QPN (potential that I agree has a realistic chance of success), it seems to conveniently slip the minds of many here what has gone before.
ASX Release (April 3, 2012)
#"3 high priority leads planned to be drilled in calendar 2012.
#"A review of the existing data has confirmed the Company's intention to commence drilling prior to June 30, 2012".
#"Quest has commenced discussions with drilling contractors and expects to negotiate and sign a 650HP or 750HP onshore drilling rig to be deployed in the Ranau area by June 12. it is expected that will contract a three well programme aimed at testing the Komering Lead plus the Sawat and Tabat leads".
A couple of points to remind readers of. Firstly, at that point in time, wasn't the bulk of QPN's money held in a bond? As such, did they have enough money available to drill even one of the leads, let alone all three? Secondly, did they immediately go to the market for funds? And thirdly, if it was the Company's intention to commence drilling prior to June 30, 2012, doesn't it stand to reason that obtaining landowners permission should have already either been 'in the bag' or at least 'close' to being finalised?
ASX Release (June 22, 2012). The market is told that "Quest Petroleum is currently preparing to drill its first exploration well in the highly prosective Ranau PSC".
ASX Release (26 JULY, 2012). Quest now announces a Capital Raising of up to $5,000,000 so they can commence drilling of their Jaya Sub-basin leads. OK - so it does appear that money DID NEED to be raised before drilling could begin! In this release, it is also stated that "the approvals and site assess are well advanced".
ASX Release (11 September, 2012). BPMIGAS (Indonesia's Energy Regulator) is expected to sign off shortly on Quest's work plan and budget. Following which, the company will be in a postion to advise on the planned spud date.
# Drilling contractor being finalised with materials and personnel mobilised.
ASX Release (23 October, 2012). BPMIGAS approves the Quest's 2012 Komering Basin work plan and budget. This enables negotiations for the drilling contract to be finalised and executed within the next month.
# The Company can now also advise that the spud target date is anticipated in December subject to rig mobilisation and land access agreements.
OK - so even though in April 2012 the Company espoused a clear intention to commence drilling prior to the end of June 2012, and even though site access discussions were apparently well advanced in July 2012, there's still no permission from land owners to drill???
ASX Release (December 10, 2012). Expanded Production Strategy and Strategic Partnership announced.
# The Company gets respected O&G advisory firm Moyes & Co on board to assist Quest going forward. A quick look at their (Moyes) website shows that Quest "is seeking a strategic investor to acquire 20% or more in the company".(Source - Moyes and Co website. Click on Current Mandates).
Over the course of the past several months, I have read the views of many holders or non-holders whose opinon I respect. And the one 'constant' is intertwined and pertains to Mr Thammrin.
Many posters have said quite rightly imo that Mr Thammrin is widely regarded as being without peer insofar as Indonesian O & G knowledge goes. He has advised the Company to drill the Komering Lead first. Unless you are a day-trader, I suspect that many/most holders, hold at least in part because of Mr Thammrin's knowledge and expertise and I highly doubt he picked his less favoured target to be first cab off the rank.
Therefore, would it not stand, as many here have said, that a successful first strike is reasonably likely? And if you are of that mindset, wouldn't a successful strike make the SP far higher than it currently is?
As such, wouldn't offering 20% or more of the company to a strategic investor be better for current shareholders AFTER a successful strike than BEFORE it?
It's now the end of January 2013, some ten months after the intention to commence drilling was announced and seven months after the drilling was supposedly expected to commence. As of the time of writing, no public announcement to say that land owner access has been received has been forthcoming. It should also be noted that re. the time of year (weather-wise) that the company choose for spudding, the company told the market that "the drill site is on well drained, elevated land adjacent to a paved asphalt road which will expedite the commencement of drilling". Surely the company knew what the weather was like at this time of year.
For this and all the above, I find it hard to fathom how any fair-minded person could get annoyed with any holder who is currently scratching their head at the time it has taken, not so much to spud, but for the market to be informed as to what the true state of play currently is. If there is O&G there, it won't up and run away because of a delay, so why not tell the market what's happening?
Right or wrong, I personally take the long wait to get land owner approval as a positive. It makes me think he/she/they were holding out and trying to get a better slice of the pie. But given it's my understanding there is an agreed value process put in place by the Gov't if an agreement between the parties cannot be reached, it does seem strange that it has taken this long for HQ to move down that path.
Anyway, as many have said, a successful first strike and everyone will be happy. That however doesn't mean that holders who have queried the delays aren't putting forward valid comments.
Good fortune to holders.
Regards RM
QPN Price at posting:
0.5¢ Sentiment: Hold Disclosure: Not Held
