Notes copied over from Fool:
Hi all thought I would share my experience regarding my first AGM.
After a quick trot down a very sunny O’Connell St and on to Grafton St I made it to the Westbury hotel only a couple of minutes late (which for me is pretty good) BH went through the resolutions then started the presentation which he did point out all the contained info was bang up to date.
Below are the few notes I managed to take if DJ or any others spot any error please feel free to correct as multitasking is not my forte!
• The seismic on KN-1 is just about to start.
• The presentation uses an oil price very similar to the current one but a slightly higher gas price.
• AEX would like to get the S sand formation tested/online ASAP but there is a slight risk to current production. DJ asked about AEX intention to push ahead with this project in relation to falling/low US gas prices but BH said they were still keen to go ahead with it but the operator has to be careful as if anything were to go wrong with the current production the smaller partners would look to sue.
• BH did mention that possibility to get both SE1 & SE2 fully running could see up to 20mmscfd, from my notes I can’t see if SE3 was included in that figure. DJ?
• Near infrastructure & currently involved in some really keen negotiating regarding this site. AEX can see a great deal of upside from Shoats Creek.
• May look to sell this field due to high obligation of wells and high royaltys.
That was really it regarding the notes I managed to take through the presentation however I did get the chance to talk with both Didier & BH both of who were very friendly seemed keen to chat.
1. The first question I asked was regarding the warrants, they have already looked into reducing the price but unfortunately this was not feasible but they have been advised that they can extend the term and are looking to do so.
2. We also discussed KN-1 & the Songas plant I was advised the pipeline was accessible to AEX ‘like a motorway’ as its not owned by a specific company so AEX can have access the problem is the processing plant. The plants 2 trains need to be upgraded which was meant to start in Sep/Oct but there are still awaiting government approval this upgrade is expected to take a year to complete. In the mean time AEX need to complete and access the seismic over the Songo Songo Island to determine the size of the formation so they can go out to businesses and sell long term contracts. The average price for gas last year sold in to industry was $11. As a result once the Songas upgrade is complete AEX should be ready to sell their gas very quickly.
3. I also asked if any new farm in partner would need to be involved in negotiating/securing a rig for the Ruvuma drilling program but was advised because Tullow are the operator so this should not delay the booking of a rig. AEX are currently discussing the farm down of Ruvuma with a handful of companies but any details are obviously under non disclosure.
To conclude the SP looks depressed as the market can’t see how AEX intend to finance the potential they have over there 3 main project sites! Fortunately progress should be made on 2 of these 3 main sites namely Ruvuma & Shoats Creek over the next few months leaving only the Nyuni PSA to fund. I think they would even look to farm this out as BH described KN-1 as the tip of the iceberg for the Nyuni licence.
PS the 3rd well in Egypt should spud about the same time as the Ruvuma well so fingers crossed.
Well that was my first AGM and hopefully not my last, please DYOR.