Ann: Annual Financial Report 2014, page-5

I think this is a very insightful and good report reinforcing my view the company has had a plan and has been slowly building solid foundations to develop its assets and grow in the future.

Last year we were told (26/09/14)
"The 2012/2013 year has been a year where Grand Gulf has consolidated its position in Louisiana and
started to establish its cashflow from the discoveries made in previous and current years. This has not
been without hold ups and we would have envisaged greater production this year. However, the
company is set to increase production and cashflow in the coming year."

And this year (12/09/14) - what was delivered:
"In 2013/2014 Grand Gulf Energy continued to focus on its Louisiana Gulf Coast production. The year began with production commencing at around 370 BOPD from the Company’s 35.6% owned Hensarling #1 well, in the Desiree Field on the Napoleonville Salt Dome. Subsequently, the well was put on jet pump and it is currently producing at around 400 BOPD for a yearly total of 120,160 barrels. Financially the Company has had its best year to date with production revenue over $7.5 million, more than doubling last year’s revenue of $3.5 million. Earnings before interest, tax and amortisation was $3.8 million. The Company’s debt position has reduced from $629,000 to $174,000. Most importantly, the Company had again another self-funding year, the third year in a row. The cash position has increased from $1 million to $1.8 million and working capital from $1.3 million to $3 million."

The broader market continues to overlook the good performance but the top 20 have increased their holdings by roughly 9.5% with 6 increased positions, 10 Stable, 1 reduced and 1 not sure. Possibly a clear indication that there is stronger support for mgt's   efforts than what we can see.  

Other highlight's for me:

• "The Company was handed back its operatorship of the Dome in February 2014 and the Company
  immediately set about ramping up its in-house G&G staff and secured the services of an experienced
  Gulf Coast geophysicist." Imo this is a positive and opens possibility for higher WI or other farmouts and we are in a stronger financial position today than we were in 2012.
• "Grand Gulf revamped its G&G team in Houston and is ramping up work on the Napoleonville Salt Dome and elsewhere with the aim of accelerating the number of self-funded wells
  that it participates in through the coming year and beyond."
• The Company has settled most of the legal claims with one remaining legal matter being finalised. Insurance continues to cover all costs.

There is no trumpet blowing which I believe comes from a cautious awareness that there are no certainties in this industry. Company has encountered and appears to have overcome several obstacles to get to this point which is clearly reflected in the numbers presented in my opinion.

Another highlight for me is in the notes "(v) Capital Risk and Liquidity Risk Management........The Group’s overriding objectives when managing capital are to safeguard the business as a going concern; to maximise returns for shareholders and benefits for other stakeholders and
to maintain an optimal capital structure in order to reduce the cost of capital." Clearly a work in progress to get successes recognized in our SP which becomes more likely if we can continue in 2015 like we have in 2014.

I could go on and probably will another day

Well done Management! appreciate your efforts and wish all the best for the new FY.
Cheers to all