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GeoGlobal Resources Inc. Message Board

  • investing_rules investing_rules Mar 31, 2011 11:05 PM Flag

    For the Long Time Holders on the Board

    What was your take on the annual report today? Do you see any change of direction coming for the stock price?

    Just curious what the long time holders are anticipating over the next several months.

    gl

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    • Seems no big surprises , they actually had more cash in December than I expected .. They are being quiet on potential, and detailed on potential costs - though it'd be interesting to look at last year's cost projections and compare to actual spending - I think we'll find that all projects across the board are spending slower then planned in the previous 10k - and given the regulatory situation, I expect that to continue.

      Seems more likely that the major Indian firms are also interested in proving up reserves and then sell minority stakes at inflated prices - I don't see any of the firms rushing to production, or looking to optimize existing production

    • The 2010 financial results are dominated by the asset impairment. That is an accounting transaction to reflect the reality of abandoning wells. The wells were not commercial and never were. So it is not news.

      I don't view annual statements as being the appropriate time for announcements. Newsworthy events should instead be announced in a timely fashion.

      Some investors look at the financial statement and invest only based on past results. Without the asset impairment, the loss was $5 million. With the asset impairment it is $18 million.

      GGR is not going to succeed unless and until it makes a meaningful discovery. It is still trying but the delays have cost it dearly.

      In the meantime, there are 7 prospective areas, namely two blocks in Columbia and three in Israel and the two KG basin blocks.

      Last year at this time, there were a total of only 4 highly prospective areas. KG onshore, KG offshore, and Rajasthan blocks.

      The lack of discovery at Rajasthan was truly disappointing. The cash level is shrinking so more dilution is likely as the seven areas are set for drilling.

      Any significant move to GGR's share price is entirely dependent on a significant find in the future.

      It is difficult to predict whether the share price will be affected by this accounting document. Over the next few months people will watch progress, if any, on the seven prospective areas.

    • For the next several months....say six months....unfortunately we don't see a lot. Potential positives are:

      1)Sale of GSPC related assets for some cash, and/or arrangement of some asset based loans based on some of these assets.

      2)Resumption of drilling in Rajasthan, with the possibility of some success there.

      3)General progress updates on other fields, such as: seismic results, or contracting of rigs for KG-onshore, rig for Sara/Myra in Israel, or some progress in Colombia.

      What we are all waiting around for now are the first wells and test results in KG-onshore and then the first well in Sara/Myra. Both should start drilling before the end of the year. Despite the hype around Israel, my focus is on KG-onshore. Prospectivity is as good or better than in Israel, and GGR has rights to 20% versus 5%. Plus it is on land, so faster and cheaper to explore and develop.