Uncertainty without third party verificationThe company has relied on two experts being Cathey and Jarvie.
Cathey determined that it was a 30,000 foot basin and, Jarvie estimated the oil of 120 billion barrels of oil.
The only issue with them is that both are employees or were employees or other of the company therefore shareholders need an outside third party verification to validate these assumptions and we have none.
There is a reason why public companies have audited statements by third parties, it is for creditiblity purposes with the public.
Results of drilling in two holes has shown that the company was not able to drill beyond +/- 9,000 feet which calls into question whether it is a 30,000 feet basin or a 9,000 foot basin. It matters because at 30,000 feet oil would be cooked, but at 9,000 feet it is possible that oil is immature or not cooked.
The fact that the company did not disclose depth issues in April 2021 on hole 6-2 is concerning because shareholders did not know and should have known about the faults.
The STP 1 hole drilled by Shell in the neighbors land next door had a basin of 6,000 feet, they did find oil but it was not cooked.
What is also concerning is that all of the major big companies are drilling offshore Africia where there is a source rock and oil where there is a huge basin there.
So why are we drilling in Kavango when action is offshore, is my question?
Also in July 2021 we were told that we would have third party verified core lab results which would put any doubts to rest. Once again we do not have this information from third parties so doubts remain.
This leaves shareholders with doubt, uncertainty and, a vote of non confidence in the project.