Hi
@NotReleventYes, I do have quite frequent communication with David and to a lesser extent, Gracjan as well.
In 2018 , when I was the only shareholder at the 2018 AGM, David and Michael were good enough to give me about an hour and a half of their time answering my questions. As part of that, David was kind enough to offer that if I ever had a question, for me to feel free to contact him. I have taken him up on that offer many a time since. As I have traveled to Perth for 3 more subsequent AGM's, just missing the 2020 meeting due to Covid, and attended most of the Sydney roadshows, BRK have done, I have met David quite a number of times now.
I can't speak for his communication with other T20 holders, or other shareholders to what discussions he has with them, but most of our conversations are based around him answering questions to points I need clarification on.... and there have been many over the past few years. I don't feel he keeps me in the loop more than the general public, but I think I may ask more probing and detailed questions so may get more detailed answers. My profession lends itself to the need for detail, which has also translated into my investing research, especially into BRK for which I have conducted more due diligence than any other investment.
For example, trying to understand how the whole DSU, spacing exemptions, pooling , court dockets etc thing worked took probably 30 mins of his phone time to explain.... another example was I couldn't see where the NGL's fitted into the picture when the 2020 reserves report only mentioned oil and natural gas, so he explained the concept of raw gas containing the NGL molecules, and extracting them gave a NGL barrels per million cubic feet and that the gas volume shrunk after the extraction., where in the SWISH AOI, the average was 100 barrels NGL per million cubic feet, and the gas volume shrunk ~30% after the NGL extraction. These ratio's can be derived from the well production graphs put up in the quarterlies but DP explained the detail and nuances on my asking questions .
DP may possibly answer my questions more readily because I am an active shareholder and I do pass on my " understanding" on HC, which may help others here. I do ask a lot of questions at the AGM's and roadshows.
While nothing is ever a 100% certainty, in terms of confidence that the monetisation event will be a land sale more likely than anything else, yes I am confident that will be the case. DP has expressed that publicly on numerous occasions... a land sale at a material discount to NPV that will entice a major to purchase ( as that will give them an instant book profit because they will pay at a big discount to NPV price of ~30%, but book the reserves purchased at NPV or NPV10% ) , and still provide a very large multiple return on the capital spentfor distribution and redeployment into new assets. ( another concept he explained to me)
Having said that, David has also stated, (as we all know) that the monetisation will be in a form that will give BRK shareholders the greatest return at that particular point in time. So if the land sale offer doesn't meet the BRK criteria, they have the flexibility to monetise through partial sale, farmout, JV or whatever combination. Full development by BRK is also a possibility(very, very unlikely ), as that would essentially mean no adequate offers of any description. Were that to occur, IMO BRK would continue to develop the Sycamore at a few wells per year as funds would allow, while continuing to build more DSU's to drill HBP for an eventual sale .
Their business model is after all, acquire undeveloped land, drill to HBP status, monetise...it is a question of time more than anything else .
Hope that answers your questions.
Cheers
Dan
GLTAH!!
(20min delay)
