Dear Fellow Shareholder,
Re: Company Update and Resignation of CEO
It has now been six weeks since a clear majority of our shareholders rejected the attempt by Quantum Pacific to spill the Intrepid board, and at this stage our attempts to have constructive discussions with our Indonesian opponents have been rebuffed.
We had anticipated that Edwin Soeryadjaya and his associates would not engage in discussions with the existing board and management of Intrepid prior to the EGM. All the evidence suggested that the best interests of Mr Soeryadjaya and his associates would be served if Quantum Pacific succeeded in its attempt to take control of Intrepid, and in the lead up to the vote, it was important for Mr Mazur of Quantum Pacific to be able to say that Mr Soeryadjaya would not negotiate with the Intrepid board.
We have always been open to the possibility of a commercial resolution to what otherwise has the potential to be a long and drawn out legal dispute. Since Quantum Pacific failed to gain control of Intrepid, our representatives in Jakarta have met twice with Mr Soeryadjaya and our financial adviser has met with his associate Gavin Caudle of Provident Capital. In those discussions we indicated that we were willing to consider any reasonable change, if as a result, Mr Soeryadjaya and his associates were prepared to negotiate in good faith to find a workable commercial solution.
Despite these attempts to seek constructive engagement, Mr Soeryadjaya and his associates have not shown any real interest in reaching a commercial settlement. That being the case, we remain committed to using every legal remedy available to us to restore value for Intrepid shareholders.
Meanwhile, our CEO Brad Gordon has been headhunted, and as a result will further his career elsewhere. We thank Brad sincerely for his leadership over the seven years he has been with the Company. We have commenced a search for a new CEO who can lead the battle to recover value in Indonesia. In the interim, I will assume the role of Executive Chair until a suitable replacement CEO is appointed.
Whilst we need to reserve a portion of our cash to fight the legal battles, the vast majority of our cash could be allocated to the development of another project should the right opportunity arise. We are continuing to actively look for such opportunities, and see the renewal of the Company's leadership as a chance to reinvigorate this process.
In closing, let me assure you that your board and management team is continuing to do all it can to restore value to shareholders, and we very much appreciate the support that has been shown by so many of you during this difficult period.
Ian McMaster AM, Chairman