Open Letter to CEO June 17, 2013
Mr. Randy Bartley, CEO
Coastal Energy
Dear Mr. Bartley,
I would like to convey to you how disappointed, how profoundly disappointed I am at the recent selective disclosure of material news and the disastrous market reaction to same.
My wife and I have a very significant proportion of our retirement savings invested in Coastal Energy, and until today we felt secure that our investment was well-stewarded and would be rewarded.
Obviously, having a large proportion of our assets invested in a single company, I try to keep informed of developments that might affect the share price. You will understand my surprise when I learned this morning, from an Internet bulletin board !!!, that rumors had been afoot in some circles of delays to the delivery of Coastal’s MOPUs had been circulating since March, 2013. The bulletin board post went on to say, apparently quoting from an unidentified research update, that director Andrew Cochran confirmed last week during a marketing presentation in Paris that the delivery of these MOPUs was delayed, and consequently, the Company’s previous production guidance would not be met owing to the indeterminate delivery of these MOPUs.
This afternoon’s press release from Coastal makes reference to damage to BOTH MOPUs during transit. Really! When did this damage occur? March? April? May? Certainly before Mr . Cochran’s comments to selected ears last week.
I am disgusted that this important information was not disclosed to the market in a timely and uniform manner, and am personally, substantially poorer as a result.
I await your response before I forward my concerns to the Ontario Securities Commission.
Yours truly,