2011 annual report disclosure and now , page-4

Hi All,
I have just voted. For those new to filling in proxy forms here are some tips.

1. Please fill in your name and address exactly as it appears on your Chess Holding Statement otherwise your vote may be deemed invalid.

2. If you are not able to attend the meeting in Perth then please appoint a proxy otherwise the Chairman is automatically made your proxy.

3. Please Vote FOR or AGAINST ALL resolutions as any undirected proxies will be voted FOR the resolution by the Chairman.

4. Don't forget to sign and date

Incentive schemes should reward actual not promised performance and any options, performance rights or free shares should be linked to actual oil production. The theory behind awarding senior management with equity based compensation was to align management interests with those of investors. When management gets free shares and does not have its money at risk management cannot lose, unlike the ordinary shareholder, who has paid for their shares with their own hard earned money. The retail investor loses when the SP declines or their equity interest is diluted by the issuing of shares by the company to its executives and Board. So I would urge the compensation committee to revisit the LTI plan and withdraw the proposal in its current form or face the possibility of being humiliated at the EGM.

Please do not use the excuse that this is how senior management is remunerated in the USA as the remuneration practices in that country are not ones that we in Australia should slavishly emulate. Look where overpaying bank CEOs got the Americans, GFC Mk1 and the world is still trying to recover from that one.

I believe that the CEO and Board is more than adequately remunerated at the moment. If and when tangible results in the form of oil production and SP appreciation occur for your shareholders then I am sure the retail shareholder base of the company will be more than happy to see you receive a higher level of remuneration than at present.

ASX good practice guidelines for Non Executive Directors (NEDs) state that they should be compensated for their time via Director's Fees only and should not receive options or free shares. If they wish to participate in the growth of the company then they should purchase shares on market like everyone else whilst observing the share trading policy of the company and any blackout periods.
The Compensation committee consisting of the three NEDs has resolved to award themselves Options Resolutions 3,5 & 6.
I would like to be in the position of deciding my own salary however that is very unlikely to happen.
Each NED currently receives $60,000 p.a for attending Board meetings and the chairman receives $25,000 extra.If the Directors feel that the Director fee pool is inadequate then they can put a resolution at the next AGM to increase the size of the fee pool.

5. Fax your completed form to (08) 92209820 or post to
P.O. 7654 Cloisters Sq Perth WA 6850 at your expense (no post paid envelope supplied.

Maybe if there is a flood of NO votes early in the month the Board will reconsider its position and withdraw the resolutions to save face and to avoid the "two strikes rule"



regards




jukieoz836