comments from the agm

JT et al

I wasn't alone in asking the difficult questions at today's AGM. There was someone who obviously knew the former board memebers and he pushed DM on why they objected to the merger.... but of course DM said he couldn't speak for them! It got a bit rankerous.
Although some reference was made to only 2 wells having been driled by the former board and the new board would be more proactive .. I couldn't escape the conclusion that I had already come to that the board was sacked because they didn't want the merger because its not a good deal, and that no matter how they dress up the GGX assets they are not going to lead to any serious shareholder value anytime soon!!

Before the vote on re-electing Ashley Edgar I asked him to give his reasons why the merger was a good deal (given that Morton is conflicted). He did a reasonable job of talking about spreading geological and operational risk over a wider range of assets. He was of course re-elected.

There was a presentation by Langusch and Morton outlining the aseets and the merger proposal. I remained unconvinced of the value of the GGX assets .. they are all relatively high risk and the Philippines has been further delayed. They are NOT great assets and you wouldn't expect them to be given they are held by a VERY small and poorly financed junior explorer.

I argued that GGX was the desparate one and that the price needed to be better for the deal to look attractive to OIP shareholders. DM contended that they could have raised a few million to carry on alone ... I can't say whether that is right or not. I argued that many had invested in OIP because of its CSG assets and proximity to and relationship with ESG and that even a 25% percent share of say only 400 PJ (of the 3,500 PJ estimate) would rerate OIP 2-3 fold. Yet the current board seems to want to play down the CSG assets. DM argued that my valuation of these assets was wrong and that the former board had in fact set their value (low) by the terms of the farmout to ESG. I was pleased to get a confirmation that OIP will retain the current percentages of CSG equity in its leases (post farmin) and won't dilute further. I said so you are going to pay your share of ongoing exploration costs (rather than the current free-carry) and he said yes. So that's good news .. particularly if PEL 6 results are positive.

There will be a vote on the merger by GGX shareholders in January. OIP shareholders will be asked to approve the sale of DM's GGX shares in the merger ... we were told that if this vote fails then the merger will not happen.

To be fair the board dealt with my questions and those of others reasonably well although some good humour was lost at times .. on both sides.

Afterwards DM, RL, AE, myself and another shareholder had a longish chat generally about all the issues in a more relaxed atmosphere. DM said that he has been asked to join many boards but he wants to make OIP work and he is enthusiastic about the GGX assets .. that's why he acquired them. So for those who think that he can do no wrong and that he's the man to invigorate OIP that's an endorsement. He did agree however that from an independent observer's perspective the deal could look a bit "fishy" .. my word was "incestuous". Just a bit !!!!!

I am firmly of the opinion that no matter what we small shareholders think ... as usual ... what the board wants will happen.

H