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#CEO Letter - June 2023
stale
Added 8 months ago

I had a bit of a laugh reading this as the CEO sounds frustrated answering these questions, below responses are a cutdown version, full version - Byron Energy Limited CEO Letter to Shareholders.pdf


"Dear Shareholder, It’s been a while since I last wrote to you but over the past few weeks the Company has received a number of calls from our shareholders asking a remarkably similar set of questions. There appears to be some misinformation in the marketplace about our Company and unfortunately, we live in a time when if you say something often enough, irrespective of its merits, it is assumed to be the “truth”. This letter will answer these questions in order to make sure our investors are fully informed. The five primary questions being asked by our investors are as follows."


1. Has our production collapsed?

"The simple answer is NO."

2. Has this supposed production collapse made it impossible to arrange suitable finance for our upcoming drilling program? 

"Byron has a well-established relationship and is in regular contact with the most likely groups that will provide finance, and at this stage, and given the current oil price environment, we don’t envisage any reason which would preclude us from arranging both timely and adequate finance on attractive terms when the rig is finally available."

3. Are we intending an equity raise to fund our upcoming drilling program?

"This is perhaps the most unexpected and disappointing of all the questions we have received. As we have said on numerous occasions, an equity raise is not under consideration. Furthermore, with the share price at a very unreasonable and historic low, we do not feel that we could or would use our shares for any corporate M&A activity."

4. We have been asked a number of times whether we have intentionally not fully developed SM71? 

"Quite frankly it’s hard to understand any reason why an oil company would deliberately choose not to develop a strongly economic field. These sorts of rumours have existed throughout my fifty year career in the industry and having worked for some of the largest and some of the smallest companies, I am yet to see an example of any company leaving economic reserves intentionally in the ground. Byron will continue to develop our company wide portfolio of reserves in a rational, efficient and expeditious manner."

Conclusion

"Let me conclude by saying the Company is in solid financial shape, has a wealth of prospects across numerous and diverse GOM leases, has substantial financial relationships within the industry and can look forward to significant growth in the future. I, like all of you, am disappointed with Byron’s current share price and do not believe it reflects the company’s true value. The team at Byron are determined to stay focused and continue to apply the best geophysical and engineering technology available in a coordinated effort to maximise shareholder return."

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Valuation of $0.300
stale
Added 4 years ago
Has good technology and ability to assess oil fields. A year of strong drilling ahead with a positive outcome for the F4 well announced yesterday. Strong management with good ownership. 15-8-20 Still happy with this company and think they are well positioned to recover fro mthe oil supply disruptions. Have recently positioned their SM58 rig which will enable their oil production to increase. This along with their low production costs and the good hedges they have in place all give confidence to the future for bye. I am sticking with 60c valuation over the next 1-2 years as the oil price recovers 23-9 Disapointing drill results with the G2 well was non-commercial, a lot of expectation was bult into the price as management were very confident that this was a winner. Have sold out of this for the time being and will look at it again when it is <15c as there is a cashflow risk here if they want to continue their drilling program.
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