what is max no. of cns that can convert today?, page-10

Hi beachman, good to see your coming back so maybe you will have the time to respond to some questions i put to you last week. Here is my post from the 8/5/13 as you are to busy to go back, cheers


Hi beachman


This post is with the greatest of respect ! I put some thoughts and queries to you yesterday evening but you may not have had time to read them?? I would appreciate a little of your time please as your posts and thoughts are more than a little intriguing to me,:)

I see you have kept up to speed with the GGP threads yesterday and today, very frequently. It's good to see you are refreshing your page and keeping abreast of everyone’s thoughts regularly through the day.

" I like the early signs from the new board that came in a few months back (as I said yesterday). They have been rationalising their acreage in a sensible way, even if they had no choice. They got a fairly good price for Cutlass, and the stuff they surrendered in March was their less promising stuff, which they were realistically never going to drill. The previous board's problems occurred largely because they tried to get too big too quick (as well as having a level of bad luck with their wells that would be hard to believe if it wasn't true). Getting too big to quick, or at least trying to, is a problem you sometimes see in billion dollar companies, not just tiddlers with delusions of grandeur. The new board seems much more focussed. Hence my comfort in investing with them. "

Beachman you must be getting more information than the rest of the market? To this very day, I have not heard one word, read one sentence from the new directors.

The “stuff they surrender" was always going to be fully developed as a standalone by GGP. you can take my word on that, or if you like take Chris Ritchie’s word as I asked that question only last November. How do you know it was their "less promising stuff”? If you care to check what their neighbours are producing in NW Irion County I am sure you may reconsider your call there? GGP as of only a few months ago were going to fully develop, by themselves the complete 8,806 acres and were going to do 90% of it with horizontals.

You say the previous board’s problem was they tried to get to big to quick. Again, how do you come to that conclusion? Really these guys went the exact opposite way. Here's the proof, I have posted these on many occasions and am going off the top of my head. I can assure you the month's I speak of are pretty much correct. Just a bit lazy and tired at the moment to go back through the TRRC website.

1) SRH #1 shut in for 8 months for no good reason. For frack extension?

2) SRH #2 shut in for 9 months for no good reason. For frack extension?

3) SRH #3 and #4 consistently on and off production. For what reasons?

4) SRH #5 delayed more than a year because why?

5) The original 10 well programme was pulled because of the discovery of the new and unknown intervals which they surprisingly didn't know about. Well it is my understanding they had documentation (I have read this document and is in the public domain) on all the intervals under their leases in both counties, new intervals like the "cline" etc. So why did we have to stop and reassess then decide to go to a full blown horizontal programme. They knew the issues of not being able to access funds and a J/V partner because of the legals yet we still had to change tact and go for the 1st div prize instead of the smaller jackpot. All this slowed things down so much and caused a hell of a lot of angst and anger with oppie holders. All these facts are surely not a sign of management wanting to get too big too fast?

Beachman, you say the new board is much more focused hence your willingness to invest. I would once again love to know what you have seen in the new board members. To have this positive view on them. What has happened since these two have come on board? What are you on about? "Much more focused on what exactly? Please give something other than a statement with no backup. As far as I can see, on the face of it these two new board members are just yes men and there to keep things smooth and silky and the count on the right side of, well,,,,,,,,,,,,,,

"However, if all things go well with the current wells, GGP will evolve from an explorer with a bit of meagre production on the side, to a meaningful producer with a bit of exploration. If you gave a start up Oil Company $20m to spend, there is no way on this earth they could build what GGP have today. Hence my view that they are undervalued and why the disclosure on every one of my posts is long term buy. "

beachman if all five wells go exceptionally well and beyond expectations ( I truly believe this is a good chance ) I do not believe they would be in the class of " meaningful producer" because, like so many here, the wells don't produce at their 1,30, 60 day IP for their full 25 year life span. The decline curve will kick in and dramatically reduce their numbers in the first 8 month's (have to check exact numbers for vert and hori’s) So then what? How many more wells then with zip $$ and no J/V partner willing to touch them?

Just to reiterate beachman,it is with the greatest respect i ask your opinion here, so please don't take this as an attempt at anything sinister.


Regards

All my honest opinion and by no means investment advice.