Julie's summary and the items reported to Paul pretty well sum up the meeting.
My personal opinion is that the company did a very good job of presenting both the current status and the expectations and problems in moving forward.
Tim Stephens' presentation was very professional and confident, yet realistic. My personal reaction, after hearing his presentation and having a brief opportunity for personal conversation with him, is that he and the other management personnel are very much aware that they are (and have been) on the fine edge between great opportunity and potential disaster, being a small company in a big company game and having limited financial resources. He has set a goal of moving the gas to power project to its next stage within the next 30 days and has set a 90 to 120 day time period goal (which he considers possible, but very aggressive) for obtaining expressions of interest from potential farm out or jv participants in Block 4 and other areas.
The presentation by the seismic consultant was, at least to a layman, very impressive. His presentation included graphic demonstrations of the composite pictures of the structures in our areas of interest, both before and after the application of some of the very latest computerized analysis and enhancement techniques. Reportedly some of these analysis tools are so recently developed and so state of the art that they could not have been applied as recently as six months ago. The conclusion of the consultant is that the enhanced data, which is the data just now being made available to companies interested in possible farmout or jv, should make such companies very interested in pursuing a relationship with Abacan.
The Enron power project has been previously referred to by some as "icing on the cake" and a supplemental benefit to whatever value can be realized (or salvaged) from Block 4 and the other properties. IMHO that there is more to it than that. If the power project moves forward, the companies competing for Block 4 will see Abacan as a surviving company and will have a different view on the value and timing of bids on Block 4. If the power project proceeds and an eventual source of income to Abacan is assured, those companies that may have a great interest in Block 4 or other Abacan properties will be less likely to hang back and hope to swoop in as vultures when the company nears the end of its funds. In this way, the gas/power project's success and forward movement are important to maximizing value in the sale or partnering for the other properties.
After the meeting we spent considerable time discussing the power generation project with Tunde and with Baudoin La Grandville, Abacan's consultant and project manager (to who Julie referred in her post). There is reason to have optimism that Enron is responding to the need to be more realistic about certain contract terms and that progress should begin to become evident with negotiations on terms of the Power Purchase Agreement moving toward completion. Apparently one of the reaons for the pace of the project going slower than either Abacan or the contries involved would like is the Enron is a very successful, now conservative company, and has been proceeding as such in the contract negotiation and finalization process. Reportedly they are now more understanding of the need for mutual compromise.
I will try to post more when I have the opportunity later.
best to all.
Steve
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