csg initial cert, page-23

NZ lamb chops - yum!

i have been in VPE for years. it was the perennial underperformer. as a mate said Kopchieff promised the world and delivered very little.
i spoke to JK and also Eddie Smith when they had a go at VPE a while ago. had quite a few emails with JK.

it really reminds me of the ICN situation over the years.

Old oilers who found their way into CSG.

imho the current VPE is a totally different animal to the old VPE which i originally invested in.

but the big difference with VPE to ICN, is that VPE had a Board transformation, and laterly a CEO renewal. A big difference.
So i think i agree with you.
JK used to put up a matrix showing each well to be drilled and how much a success would add to the SP - but it didn't happen. I laughed because Mosaic Oil CEO started doing the same thing too.

the other big difference now with VPE (as you have often said) is the quality and experience of the top s/h, and the renewed Board.
Sentient, QGC and Robert Bryan are now slouches - and now AFIC with 5.44%. I agree AFIC are very conservative investors and are from old school like Argo and Milton, and Washington Soul Patts. AFIC Chairman is Bruce Teele who I think was boss of JB Were (?) and Don Argus is also a director. heavy hitters.

To that list of credible s/h we should also add Elphinstone (who were big s/h in QGC) and I think are sharp investors, plus BOW, plus Mirrabooka Investments (who i think are also old style value investors). interestingly AFIC is biggest s/h in Mirra with 6.8%. Amcil ltd is another corporate investor - they invest in small O&G coys - i recall they were in Mosaic Oil also in a big way.

big plus imho is their exposure to both conv oil and to csg, and cash flow. real cash flow for VPE is a new phenomenum imho.

their conv holdings in C/Basin is right in the trendy country- and i think consolidation is starting to happen, so it will get interesting.
the big new thing for VPE is, as a result of the credible s/h and board, is that now VPE actually has some money!

I have only a small s/h in VPE, so i have been slack and not followed them all that closely lately.
But based on the above, and the apparent good permits in C/B and CSG permits, I think they are a good bet. Much, much better than ICN!!!!!

so well done on your VPE - you would have done very well.
I certainly will hang on for the ride.

wrt to our common investments, i made the point i think on ESG thread, that the players in the CSG industry s/be feeling calmer now since the Santos deal was announced.
whilst i have not added up the numbers, these numbers are simply SO BIG, that no govt could possibly stop the development of this CSG industry.
the STO deal was talking about $120billion of revenue, but we can also add BG deal and its revenue, the Origin deal and who's the fourth?
so we are talking about what $300-$400 billion of revenue as a minimum over 20 yrs.
thats a hell of a lot of Federal tax, a lot of State royalties, a lot of PAYG, a lot of jobs and spin-off.
those numbers are mindblowing.

and these deals, particularly BG and STO are real - not huff and puff - they will go ahead - so the gas glut doomsayers are being left behind.

so of course that must augur well for likes of VPE.
someone (BG ?!) will want their gas.
a ready market , with the expertise and financial clout to get it out of the ground and into Gladstone.

i think i am talking myself into buying some more!
nope - need to fuel up my boat!

have a good Xmas Tui (and go the Wallabies)
cheers