Sona Petroleum Bhd MD Datuk Seri Hadian Hashim discusses the following questions: 

- SPACs -- in which … investors buy stock in a shell company in the hope that the management team locate and monetise qualified assets .. .. have acquired somewhat of a bad reputation among the regulators, who have either rejected or delayed a number of SPACs. (Australasia and Terra Gali spring to mind).

The grapevine even whispers of a jammed pipeline of SPACs waiting for SC approval to emerge How would you respond to this perception that SPACs mostly benefit the arrangers only?

- Is this why the moratorium imposed on Sona has been the most onerous of any SPAC thus far? 

- Sona - in your own words -- have a management team of over 300 years relevant experience between them -- plus with a Dutchman, Indonesian and a Burmese in the fold, there is diversity, useful when buying overseas.If the team is this good -- and the assets so lucrative -- why not go the private equity route instead? 

- There have been criticisms that there has been an over-preponderance of Oil and Gas-based SPACS in Malaysia -- and that both the businessmen (as well as the SC) lacks imagination .. 

- Of the cornerstone portion – what % went to foreign vs. domestic institutions?

- Around 29% -- or some 275 million shares out of the 959 million shares allocated for institutions have been offered to six cornerstone investors, namely Hong Leong Asset Management, Hong Kong-based hedge fund Segantii Capital, and investment firm Davidson Kempner, as well as the three banks backing the listing: RHB Investment Bank, CIMB Investment Bank and Kenanga Investment Bank.What was their purchase price? 
- And their moratorium terms? 

- What was the main pushback from institutional investors during the roadshow?

- Thus far -- how much have you raised? How will this affect your appetite for qualifying assets? 

- Why are you giving investors free detachable warrants? Why the continued need for this sweetener after the success perceived at least, until earnings flow, for both Hibiscus and CliQ? 

- CLIQ listed in April last year, but is yet to make any acquisitionsWhat makes you confident that you’ll find suitable qualifying assets (QA) within the 3yr timeframe? 

- Will it be more difficult to find attractive acquisitions with crude prices near $100/bbl and the MYR having come off 5% since the start of May?

- You aim to target acquisitions in SE Asia, the Middle East and select African countries – how can your mgmt. team focus on such a broad geographic scope? 

- How do you plan to mitigate sovereign / military / conflict risk in African nations? Especially places like Congo, Nigeria & Uganda?

- Furthermore, ‘informal payments’ are commonplace in securing deals in these mkts… Will it be a level playing field for Sona?

- Your BOD is represented by a national from each of Myanmar and Indonesia… Are these countries of origin good indicators or potential acquisitions? 

- Ultimately, oil prices need to remain high for Sona to be viable over the long-term. While you’ve been quoted in the price as saying this is expected to be the case .. more recently we’ve had the Chinese and European economic slowdowns impacting the demand-side, while the US shale revolution and Canadian tar sands have helped boost supply…What are the key long-term structural drivers in your view that will keep the oil price elevated if at all?

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