RE: RE: voting results out I just would like to report, that I was able to speak to the CEO (Kelly Drader) yesterday, and I was quite encouraged by our conversation, while naturally he did not disclose any privileged information I felt assured about the future of Longview.
We discussed the company asset base and I was pleased to learn that close to 100% of the assets are potentially suitable for waterflood (up from 40% to 50% on EOR today). We also discussed the large remaining opportunities for EOR in Alberta, most investors focus on the strong growth potential in SE Saskatchewan, but Mr. Drader also highlighted numerous remaining EOR opportunities in Alberta. He also mentioned an interest in expanding their shareholder base to more retail, and that steps will be taken in that direction in the next few months. I have also suggested that they add relative comparison tables to peers in their presentations (in addition to few other modifications) and he indicated that they will likely incorporate some of those suggestions in future presentations.
Mr.Drader indicated that he hold a substantial investment in the stock (I believe 500K to 550K shares) and like all shareholders he would like to see it grow in value, and just as many other investors are he is frustrated with current undervaluation.
In regards to production, he felt that they are on track, but did indicate that the continued wet weather is forcing them to minimize the number of working rigs.
He agreed that Longview investors require clarity about the future of the company considering its relationship with Advantage, he alluded that this clarity will be provided once the Advantage review process will conclude, however he did not provide any details about where the Advantage process stands today.
From conversing with him, I had the impression that he would like to build Longview over the long term as a sizable income focused success story, he cited Arc Energy as an example, and indicated that our asset base is similar in nature to the assets on which Arc was built.
I didn’t get the feeling that they were eager to liquidate the company, and I did agree with him that Longview has the potential to be a successful income name if management was to further focus on developing the assets and promoting the company.
Regards,
Nawar