the numbers speak for themselves

It's not worth responding to Ratfish. It'll just give him a big head and I'll be slapped with a moderated comment. And it achieves nothing.

That's what forums are for. Need people with differnt opinions otherwise we'd have no interest and no sharemarket. No use having everyone think something was worth the same price.

In continuation of my posts. What I'm saying is that the deal doesn't appear good. But I want the numbers to determine what I should do with my holding. Clearly the market is telling me that they don't think the 17% interest in the new Shell JV is worth 48 cps or that they have worked out the NPV of the future cashflows.

I don't know what it is worth and I haven't seen anything that does put a value on it. If someone has come across any analysis can you please post it on HC.

But what I do know is that I'm less than impressed by the decisions I've seen made at this company since 2006 and the amount of remuneration the company has been paying to its board of directors and key management. Excluding inflation or staff that may come or go, I'm worried that $70m is going to be sucked out of our company before we see anything from the new Shell JV.

I'm also strongly challenging the capability and capacity of the board of directors and particularly our chairman who feels he is worth $2m a year. What else can they balls up so that it negates anything good that comes from the new Shell JV. I don't want to be posting on HC with statements that it's nearly the ten year anniversary and hopefully the share price will recover to 26 cents. In addition the company has a great record for raising money from shareholders. So it's almost meaningless to say it is going to pay XX cents per share, if we end up tripling the number of shares in that time.

So here's some stats that I found interesting:

Year MF Rem Total Rem Market Cap Share Price (adj)

2006 25k $1.9m 231m 0.64
2007 422k $4.5m 564m 1.23
2008 194k $3.6m 1.07b 1.67
2009 300k $5.1m 239m 0.37
2010 981k $8.0m 239m 0.25
2011 2 mill $7.6m 437m 0.33
2012 ? ? 345m 0.26

MF - Michael Fowler
Total Rem - total board of directors and key management personnel

Not bad going for our chairman. His salary has gone from $25,000 in 2006 to $2,000,000 in 2011. I can't wait to see what he thinks he's worth this year.

Now if our share price had of grown at the same rate as his pay has from 2009 to 2011, $300k to $2m I wouldn't be complaining. However, I don't think our share price is currently sitting at $2.47.

Our former CEO, Mr Richard Cottee grew QGC from a market cap of $20m in 2002 to $5.7b in 2008. In the last year before it was taken over the company generated NPAT of $245 million and earnings per share of 33 cps. Mr Richard Cottee paid himself $900k! He probably got himself a nice little bonus in the end, but I'm sure none of his shareholders complained. In fact, some of them flew down to Melbourne to support him at the AGM!

QGC had an alliance with BG Group and ultimately they were taken over by that company at a hefty premium. Mr Cottee was capable of negotiating strategically and commercially with a large multi-national resource company for the assets that QGC owned.

QGC had Mr Cottee lead them through that growth. NXS hired him and then got rid of him and placed our future in the $2 million dollar man. What sort of CEO can our company attract now?

Mr Fowler and the Board handed a strategically important asset to the Prelude FLNG project over to Shell for no premium. That resource was critical to get the Shell Prelude FLNG business case over the line. NXS couldn't even attract a low-ball bid from Shell!

In 2006 the market cap of our company was $231m. Nearly 6 years later it is $345m, but that's it. We have a complicated asset in Longtom and Echuca Shoals looks to be the same class. We have used up our ammunition.

I am told that CRUX which was controlled by our company is now in the hands of Shell and all we have is an option to sell $75m for a 2% interest and another promise of a pot of gold at the end of the rainbow...

I can see that $75m and whatever we recover from the $60m spent on CRUX liquids standalone project going to the directors and key management, and towards exploration on Longtom and CRUX extensions.

So why should I be "over joyed" with this deal?

I'd be happy to sell out at a reasonable price if someone were to come sniffing...

Arobert