I think however you are missing a couple of key points.
Planet only has a market cap of A$10M now, A$800K in costs annually with no income stream is a milestone around its neck.
It is also a one trick pony now. With a 20% interest in one large licence.
Its not the operator, simply a junior partner, so they either agree with the work program or in effect go non-committal on it.
That does not require 6 directors, 4 at most (2 exec 2 non exec).
The workload is low, it doesn't require someone to be paid A$270,000, that's for sure. Too many people in AUS think they are worth big money salary's.
The current set-up is for a A$100M+ company with multiple assets, the sad reality is that PGS is currently a A$10M one, it needs to cut its cloth accordingly.
Yes it has some nice carry's & royalty's set up with SXY providing they actually find some oil. However they have nothing currently in place with Origin and unless they do & quickly they are going to have to find considerable A$$$ to keep pace with the work program Origin is tied to.
That is only going to add pressure to the share price until something tangible is found.
Orca in some ways is comparable, its running costs are lower & it has that all important cash-flow, that Planet doesn't currently have.
The company has little money as it is, the share price has been under pressure for ages, so why on earth are directors even thinking about other deals, which will only dilute existing shareholders massively. Ask yourself that?
To keep themselves in a nice paying job.
Right now Planet needs to keep costs to an absolute minimum until SXY hopefully come good with at least one of these next 2 free carry wells, which on success should help the share price.
LOTM
PGS Price at posting:
2.0¢ Sentiment: None Disclosure: Not Held
