Good afternoon everyone.
I've just returned from the AGM.
I have been a shareholder since 2002 and apart from the euphoria surrounding the 2018 meeting when we were all basking in the initial success of the Dorado discovery, this may well have been the best one yet.
Chaired again by the ever classy and ageless Peter Leonhardt. A man who has looked 50....for the last 20 years.
It was a long meeting however, thanks to constant questioning throughout the formal business by representatives from Nero and also McKusker.
All questions were dealt with in a professional way and certainly left this shareholder in absolutely no doubt whatsoever, that the best board composition to take us successfully to the next phase....is the one we have right now.
Even the humble pitch from Doug himself, I felt fell on deaf ears. He provided absolutely no information as to what he had planned and offered only a CV and an assurance that he knew a lot of people and could bring a fresh energy.
Having seen and heard everything that's unfolding with Dorado and the nearby targets, I couldn't help drifting back to the famous words of Mr Buffet. No matter who you are,
"you can't make a baby in a month, simply by getting 9 women pregnant". Some things just take patience and time.
So here are my take home points and in no particular order:
* Apus and Pavo should be drilled in the second half of next year.
* In terms of profit and reserves, if they both come in it will be 250% BIGGER than Dorado.
* Banks are showing strong interest towards Dorado funding and it seems capital raisings are the absolute last possible thing on their mind. Shorters....be afraid....be VERY afraid.
* Dorado will produce between 75,000 and 100,000 barrels/day. Apparently, this will make us the highest producer on the ASX.
* FID will be made late next year.
* Adrian feels confident that he'll be able to sign off on a JV for Buffalo....
before the end of the year!! (not a typo
)
* Once a Buffalo deal is done, we will look to drill it in the second half of next year.
* Adrian has held off on any marketing as he doesn't want to waste bullets. He likened this year to 2015 and 2017, when we had the calm before the exciting storm of the following year. He said there was no point firing his precious bullets when they were just as likely to miss their target, simply because of poorly considered timing.
* Covid has had a silver lining on future oil price. All year there's been even less oil exploration and discovery. This will have a delayed effect but will eventually bite the supply and demand balance, sending the oil price sky rocketing.
* As for Debra Bakker.....Debra doesn't take shit! I like Debra.
I spoke with the guys briefly afterwards, mainly to thank Peter for his class and professionalism and to wish him well.
In my view, we all need to hang in there.
We're almost out the other side of this incredibly difficult time and before you know it, news flow will be coming thick and fast.
Sentiment: BUY
(20min delay)
