R15 & all, as always just my personal opinion, my views may be wrong. Personally I doubt we have any interest whatsoever in Diamonds, for the cousin my guess is the NV asset will be either kept as a source of ongoing funding (cashcow) or alternatively sold at the right time and price for additional funding of their change of direction which has little to do with us other than the NV shared interest. If their focus is elsewhere (Diamonds), the appointment makes sense that someone with the oil expertise and specific NV knowledge can add value and best protect their SH's interests by ensuring the asset either way maximises value to them. Many exec's hold multiple roles and I have confidence that our MD and his team are working together in all our interests and that will continue.
For us here as long as our 4 wells keep producing we don't have or need to do anything other than sick to the plan. Market likes drilling as it provides ST volatility but in the long run the goal is to generate cash and make a profit. As far as I can see we are following a plan that was developed many years ago, there have been some obstacles but ultimately the Accounts demonstrate that the plan is sound. Question really for all now imo is how much oil and gas is in the prospects not whether we drill in a month or more. Many bought at higher levels so I assume that decision was based on a view of potential and if coy wanted be drilling we currently have sufficient cash to farmin to other prospects with low risk. Port Hudson was $200k and has been producing for a year now but the returns or prospect did not meet expectations and we didn't pursue. That in itself gives us a clear indication that the goal is good prospects and/or high return on investment not just finding oil.
I think the new appointment brings expertise to complement not replace the existing team and the timing is important as you can't put a roof on a house without walls or strong foundation. That is why imo our corporate costs have been so low because we only spend what is necessary to achieve the goals, there is not a lot of fat or surplus resources. Overall I think things are coming together nicely. SP may not reflect this but in this market SP is not always the best guide to how a company has performed or will perform in the future. For me this is low risk, market obviously doesn't agree but we can't win them all and in times of doubt can look to the evidence in the numbers. I enjoy following my view of the plan and not overly fussed about SP, Louisiana is exciting and I believe offers very good opportunities for growth and future returns.
Imo there is no need for us to rush decisions but carefully balance all views and manage our expectations. Things go wrong with even best made plans, these things all have risk and imo the largest today is the overall market and particularly the sector. Overall I think there are still hurdles in O&G sector and it is as important to consider these factors as well as any one coy's situation, if anywhere a gap of mine was underestimating the poor sentiment for O&G stocks and this rubs off on all stocks. It has been difficult for GGE to get free air even with some very good results, personally I don't see that changing anytime soon but that is not always a bad thing if we can form a view on the bigger picture and manage accordingly.
GLTA whatever your individual view
Cheers
GGE Price at posting:
1.1¢ Sentiment: Hold Disclosure: Held
