Management Part 3 – projects and performance 2009: My take on...

Management Part 3 – projects and performance
2009:
My take on the year: all the following is solely IMO only….. the company MO is being enhanced!!!
1: Planned drilling never eventuated or was way past the company’s initial time lines across most of the tenements,
2: a tenement purchased during the IPO was relinquished
3: additional tenements were applied for and granted
4: JV’s hinted at the previous year have yet to materialise (EP447)
5: sale of a tenement purchased during the IPO
6: JV’s and HOA signed for selected permit areas
7: Applications for additional tenements
8: $420,000 to purchase equity interests – without indicating what they are
9: Preserving the shareholder precious funds (company’s wording) while doing all the above
10: Share price has declined from 15.9c (June 08) to 7.2c (June 09)
11: CSG is the focus but already of the mindset of looking for other potential green hydrocarbon/energy productions
12: UCTL dream was born
13: Tenements required spending is not being achieved/addressed although quarterly budgets aren’t being exhausted, does/will this have an impact at a later date ?? (As we have already relinquished 1 tenement)
14: Directors issued a total of 1.2 million options per the Employee Share Option Plan (set up April 2007)

https://www.asx.com.au/asxpdf/20080229/pdf/317sfkp3r6j4pl.pdf

PEL 428 announcements (GPP 20% ownership)
20^th Jan 09 – Drilling to commence in February – yeah!! Finally, something is happening.
https://www.asx.com.au/asxpdf/20090120/pdf/31fmps9yk8kkqf.pdf
29^th Jan – quarterly activity report - review and analysis of existing information was continued, in the quarterly the plan was to drill February/March.
23^rd Mar – update report on drilling PEL427 (GPP has no interests in) but due to operational problems since Mar 16^th have been rectified with another 8 days? PEL428 drilling to immediately follow, early April – so it went from Feb, to Feb/March and now April - MEH
https://www.asx.com.au/asxpdf/20090323/pdf/31gqgsyrcbvszr.pdf
6^th April – drilling commences
https://www.asx.com.au/asxpdf/20090406/pdf/31gyq2vyq6pv84.pdf
14^th Apr – update coring of the target coal members to provide important information
https://www.asx.com.au/asxpdf/20090414/pdf/31h1j49drs4b6w.pdf
20^th April – a further update, the drill has reached its total depth, wireline log data has been acquired and total gas volumes to be determined over coming months.
https://www.asx.com.au/asxpdf/20090424/pdf/31h6rxd6rqbm0f.pdf
30^th April – ESG Drilling report, coal samples collected for gas content and isotherm measurement, and the well was plugged and abandoned as planned.
https://www.asx.com.au/asxpdf/20090430/pdf/31hb1zx453h8ll.pdf
25^th Nov – Earlier in year Kurrabooma was drilled, analyses of coal cores in progress.
https://www.asx.com.au/asxpdf/20091125/pdf/31m99hrlp8kc1q.pdf

EP447 – announcements
28^th Jan - GPP have commenced a detailed review, including investigation of first drilling sites – no mention of any JV’s as per the previous announcement (30^th Oct 08)
https://www.asx.com.au/asxpdf/20090128/pdf/31fqnmt5mhfz4z.pdf
29^th Jan – quarterly activities report – review of technical data was continued, it is expected that a major structural study aimed at out lining specific CBM targets will begin early 2009
https://www.asx.com.au/asxpdf/20090129/pdf/31frc0q3bxq5dj.pdf
25^th Mar – Structural study of Walyering trend identifies substantial potential for Coal Seam Methane, Gas and Oil
https://www.asx.com.au/asxpdf/20090325/pdf/31grw4wfs7kyll.pdf
25^th Nov – Contains the shut Walyering Gas Field (a major hydrocarbon fairway) The trend has the potential for gas including coal seam gas (CSG) In 2010 the company plans to test the potential and a feasibility study for the re-opening of the WGF that is currently in progress will be completed by early 2010.
https://www.asx.com.au/asxpdf/20091125/pdf/31m99hrlp8kc1q.pdf

EP425 – announcements
29^th Jan – quarterly activity report - no work carried out on this permit, analysis of geochemical data from wells in the region suggest the potential for oil and a study to define targets for testing to be carried out early 2009
25^th Nov – Analyses of thermal imagery in progress
https://www.asx.com.au/asxpdf/20091125/pdf/31m99hrlp8kc1q.pdf

EL4500 – announcements
30^th July – quarterly activity report – review of existing information over the area is continuing, as part of the information sharing agreement with Granite Energy, it is anticipated that drilling within EL4500 will occur in the coming 6 months –
Well we have heard it before and yet again a statement that never produced in a timely manner:
12^th June 08 – agreement with Granite Power (unlisted) Granite is expected to begin drilling in the near future. GPP is moving rapidly to develop its 2 million hectares of commercially attractive tenements and to extract natural gas to sell to electricity producers and gas marketers.
https://www.asx.com.au/asxpdf/20080613/pdf/319lxfy4y9xb5k.pdf
30^th Oct 08 - as part of the agreement to share drills/data with Granite, anticipated drilling will occur in November/December
https://www.asx.com.au/asxpdf/20081030/pdf/31d8x7htmk51ds.pdf

Quarterly Finance reports….
29^th Jan – Cash at end of quarter $1,020,000 - $205,000 was a payment for purchases of equity investments, but isn’t clear what equity was purchased - budgeted spending for next quarter $190,000 – budget not spent

27^th April – Cash at end of quarter $913,000 – budgeted spending for next quarter $190,000 - budget not spent
30^th July – Cash at end of quarter $559,000 – $215,000 was for payment for purchases of equity investments, but it isn’t clear what equity was purchased - budget spending for next quarter $190,000 – $54,000 spent


30^th Oct – Cash at end of quarter $679,000 boosted by $200,000 (sale of Mirboo deposit) – budget for next quarter $190,000 – EL4807 first of tenements relinquished, (purchased from Planet Gas @IPO) and EL4500 reduced in area.

I like this from the shareholder update – Year ending 30^th June:
First full year since listing, after the GFC, GPP devoted to re-evaluation of its extensive acreage of tenements, a sale of one area, two new JV’s, applications for new areas, and above all, very careful conservation of precious shareholder funds has underpinned the year……… very careful conservation of funds by spending $420,000 on an equity purchases (??), applications for new areas and 2 new JV’s. Taking the cash balance from $913,000 to $559,000 for the quarter ending 30^th June. The company was pleased to report their current financial position remained nearly as strong as when they listed - all considering the recovery from the GFC.
March 2008 SP 20c (IPO) June 2008 SP – 15.9c, June 2009 SP – 7.2c
One year in and the company is already of the mindset to “go looking” re: Coal Seam Gas remains a target, this year the company has broadened its objectives to look at other green hydrocarbon production and indeed other green energy production!
https://www.asx.com.au/asxpdf/20091028/pdf/31lmxd2z45nnmn.pdf

6th Feb – Finsia Presentation rehashed
https://www.asx.com.au/asxpdf/20090206/pdf/31fxwq9h7bc95l.pdf

1^st July – Appendix 3B announced – 3 million options issued to renumerate executives and consultants for work performed to 30^th June 2009. Options issued for nil consideration with a strike of 10c – these were issued as per the Employee Share Option Plan (set up April 2007) to renumerate directors and officers for services provided.
Flavelle 1.2 million, King 200,000, McCullough 200,000, Mitsui 200,000 (Appendix 3Y, announced the following day.
https://www.asx.com.au/asxpdf/20090701/pdf/31jcfpwvxlz3x0.pdf
https://www.asx.com.au/asxpdf/20090708/pdf/31jgjyd1sh34h4.pdf

17^th Aug – Heads of Agreement signed with Clean Global Energy – Initially a 3 month review of GPP’s Victorian coal tenements to select suitable sites for UCG purposes. If appropriate in a JV with GPP select sites within JV areas to build a UCG Pilot Plant and in due course a UCG (Underground Coal Gasification) commercial plant/s.
https://www.asx.com.au/asxpdf/20090817/pdf/31k3vwf9df83ss.pdf
https://www.asx.com.au/asxpdf/20090818/pdf/31k4p6wq7v6cmx.pdf

9th Sept – GPP to sell Mirboo tenement for $2.8M – EL4877 (which was acquired from Planet Gas at IPO) and would make a nice return to shareholders considering EL4877 was one of 5 tenements that were acquired, at time of the IPO GPP issued Planet Gas 12,500,000 shares @20c = $2.5M in value. The initial deposit has been paid into GPP’s accounts.

19^th Oct – Regal Resources signs farm-in agreement, conditional on licence renewals. The farm-in agreement object was to establish a commercial operation of the Underground Coal to Liquids process. The UCTL being a new process invention – the dream has begun….
https://www.asx.com.au/asxpdf/20091019/pdf/31ldw0jy1z5zf8.pdf

18^th Nov – TNC secures exclusive access to BME (Bio Methane Enhancement) by taking a 20% stake in EBM (Exclusive Australian Licence) to the BME technology, EBM have access to coal/lignite resource via farm-ins (35%) with Regal Resources and GPP at EL4860
https://www.asx.com.au/asxpdf/20091118/pdf/31m3zt2mqhz6xq.pdf

23^rd Nov – GPP granted 2 new exploration areas in Nth Gippsland – EL5227 & EL5228. In 2010 plans to analyse the technical data base to establish an exploration and development plan, for coal seam natural gas or gasification in-situ.
https://www.asx.com.au/asxpdf/20091124/pdf/31m7yl8m699btc.pdf

All the above is MY OPINION ONLY and information has been directly sourced from available announcements released by all companies mentioned.