May retain operatorship, so we control what gets spent and when...

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thecone

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22/10/23

13:28

Post #: 70471027
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Originally posted by Teji ↑

I've been pondering the ownership, decision-making, responsibilities and accountabilities re: Block 9.

With Sonangol holding 70% of Block 9 - is it still MAY who has the block (in CUPET's eyes) or just a 30% interest holder who was appointed to be the operator. How does CUPET view this arrangement in terms of ownership and compliance with the terms of award of the block? Who is the primary decision maker re: exploration, development, production of the Block? How are the respective roles defined in the farm-in? Who is really running this show???

Should this be realistically repositioned as : MAY has a 30% interest in African oil giant Sonangol's globally significant Block 9 in Cuba? Think of it from this perspective....one of the largest African oil companies has made a globally significant on-shore discovery (probably in excess of 1B bbls) in Cuba and MAY has a 30% interest in that. So from a market perspective it's not a minnow who has made a great find (and then all the scepticism and doubt about what they can do about it)....but a discovery made by one of the biggest African oil companies. In that case...Sonangol's marketing dept needs to drive the narrative and media and promotion. It was also aid their projected listing in 2025/2026.

It's just a case of how we nuance this in the ASX Ann's. I would lead with the strength of the "true" owner of Block 9.

Your thoughts?

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May retain operatorship, so we control what gets spent and when and where it gets spent!
We lose that and sonangol become operator.... They will spend big and delay production hitting us with ill timed cash calls until we can afford it no longer, no take over needed, they will get it gratis!

Well Ap knows this, and will retain control, as should anyone here, lets sharpen up. The asx is littered with ex companies who fell for this one.
Tc

MAY Price at posting: 7.0¢ Sentiment: Buy Disclosure: Held
15 Upvote

2 Great analysis

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