samson oil & gas lodges quarterly report and a, page-43

Email sent to Terry Barr today and his almost immediate response:

Dear Terry,

I am a current SSN shareholder (1.375m heads) at an average buy in price of 12.5c. I am looking at the company as a long term proposition but admit that I have been disappointed at the recent slump in the share price. I understand however the volatile and risky nature of the oil and gas business and the resultant effect on the share price when drilling problems occur. This is all part of investing in an emerging explorer.

I am however more concerned with the recent announcement regarding the proposed issuing of a considerable number of options to the Board members at an extremely conservative exercise price of 15c. I consider this to be an overly generous proposal considering the current performance of the company and accordingly I am not inclined to vote in favour of the proposal.

My view is that directors of a company should be adequately rewarded for growing shareholder wealth however the recent performance of the company does not warrant this reward package. I realise that the Special General Meeting is not to be held until 30 May and that results from Aus II, Defender, Gretel II, SOA and Abercrombie may result in a significant surge in the share price which of course will change my opinion considerably. However, should this not occur I could not in all conscience vote in favour of the resolution.

I would be happy to consider any view that you may have that would encourage me to change my position.

With kind regards

Terry's reply:

Doug
Let me respond more fully when I get to my office tomorrow morning. I think the operation and the intent of the LTI has been badly misinterpreted so I will give you some more details on how it works.
Regards
Terry Barr