Takeover by Beach or Chinese?, page-118

I think there are 3 categories
1. People happy with SXY asset and ID's strategy
2. People that are happy with SXY's but not happy with ID's strategy
3. People that think this is a dud - i.e. not happy with SXY's asset, not happy with ID's strategy

If you fall into category 3, then you really need to question why you own SXY - I don't think there are many that are thinking this though.

I fall into category 2. People in this category realise how much upside in value could be quickly achieved by an operator that isn't experimenting on wells, only to deliver 30 wells with teething issues. We see a booming oil and gas price and realise wealth can be achieved by capitalising on this.

Yes ID did a great job by being conservative during falling oil prices, but that strategy is no longer required, in line with the complete reversal in the oil price.

I am not and have never said SXY is a dud. It's simply because I have such high expectations of this asset (probably more than those that fall into category 1), that I realise we need a CEO with a better aligned strategy to the current oil and gas economic environment.

I couldn't care less about the share price - all I care about is more development wells (as opposed to 5 in 10 months - that is simply disgraceful).

The very fact that people in category one are crying out for a takeover attests to how poorly the CEO has delivered this financial year. We need someone that can deliver the stepped increase in production and earnings that we deserve.