Executive Q&A – Independent Oil & Gas Focus
Would you consider an acquisition in the near future, whether asset-level or company-level, and if so, where do you currently see value?
We are very keen to work with other companies on either level – asset- based or at the corporate level. Firstly, however, we need to complete our listing.
What’s the advantage of being a private company operating in East Africa, and are there any constraints? How will your move onto the Toronto Stock Exchange change business for you?
There are pros and cons of each corporate structure. Being private means that there is less of the administrative paperwork, with its associated expense, that the stock exchange requires. For example, TSXV requires quarterly financial reporting. Also, the company is not subject to the vagaries of the equities markets, and can take a longer- term view of opportunities. Being listed, however, provides investors with increased liquidity and the ability to trade shares, and can provide improved access to the capital markets.
What will be said about East African E&P at the end of 2012, will it be a story of M&A or drill-bit success?
There’ll likely be some exciting news from the onshore drilling, in Kenya and neighbouring countries. Of the upcoming onshore wells, I’m particularly excited about the drilling in the Tertiary rift, where a well has just started on a play that is similar to the Tertiary play in our Block 2B; the planned well offsetting the 1972 El Kuran wells in Ethiopia just over the border from our Kenyan Block 1 which is in the same basin; and the planned well in Block 10A in the Anza Graben. Each of these is offsetting wells with very good indications of oil and are very exciting. It’ll take additional drilling to define the sizes of any discoveries, and that’ll likely not happen until 2013. Offshore, I’ve no doubt that there will be further gas discoveries - the intrigue now is whether there will be an oil discovery.
What next bit of news flow should we look out for from Lion?
The seismic that is currently underway in Block 1 will almost certainly lead to drilling in that Block in 2013. Seismic will start in Block 2B once we have completed the listing. And also, once the listing is completed, we have some deals we are working on that we will then be able to complete.
Which other E&P companies do you admire and why?
Cove Energy has done very well as a result of acquiring an excellent portfolio of assets. Tullow over the years has successfully made the transition from a start-up E&P company to being a very strong mid-cap; that transition is difficult to do successfully. Afren is making the same transition now and from what I see is doing a very good job of it. Ophir had a risky strategy which has played-out well, culminating in their recent IPO.
When you’re away from work, how do you enjoy spending your spare time?
Because I travel a lot, when I have spare time in the UK I greatly enjoy being with my wife. Together, we enjoy gardening, and we try to get to the gym five to six times a week, if my schedule allows; the hard exercise is de- stressing, and I consider that remaining physically fit is very important and greatly improves quality of life. Of course, we also take advantage of the cultural benefits of living near London and enjoy the opera when we can.
What do you enjoy most about working in the oil and gas industry?
The challenges, whether technical, political, legal or whatever, and the effort to overcome them, makes this industry really exciting. The intellectual effort to solve the exploration puzzle is unique. In addition, the international experiences that I have had have been amazing, working in places as diverse as the jungles of Irian Jaya, the deserts of Oman, Norway, Argentina, Colombia, and now Africa. It has been fascinating to experience and work in those different cultures, and to meet so many fine people. My nightmare scenario for a job would have been commuting to work 9-to-5 in London.
You’re on a desert island – what three luxuries have you chosen to bring? (N.B. ‘Raft Building for Dummies’, satellite phone, teleportation device etc., not allowed)
1. Pencils and paper, for keeping records, etc., 2. A mirror, to use the reflection of the sun for signalling, and lastly 3. Packets of vegetable seeds (hoping that there is fresh water on this island)
Maps available on request of Lion acreage areas. Contact Gayle Meikle, Investor Relations
g.meikle@
lionpetroleumcorp.com
Drillers and Dealers :::
::: February 2012 Edition
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