$2m range resource loan, page-14

Thanks Abu, I found this to be of interest and is about PL being asked qns by an RRS Share Holder...as posted by soj88. I like the part where PL is asked about renumeration and consultation fees, and he states that it is in line with other similar type companies. Would be interesting if anyone can check if the $4.6M payout to Mr Bruce Buthelezi is inline with other similar type companies? That is a lot of Share Holder Funds for a startup, looking to off load assets to pay off debt. Was Bruce Buthelezi even qualified as a Managing Director? I have researched far and wide and can't find a similar renumeration?? Can anyone clarify???

Also note QN8 about the $2M RRS Loan? I will use this as reference to my next email to ASIC.

I Take it, you meant this email exchange?

PL Email
06 Sep 2012, 23:53
As posted by choppedfried today on III:

I have just had a detailed email response from PL to 11 questions....out of fairness to everyone, please see the details below:

Peter
> I am one of the concerned posters, let me ask you 11 straightforward questions:.
>
> 1. Is it correct that Range pays you $300k per year for your services as Executive Director and an additional $300k for your consulting services to Doull (hope I have spelled that correctly)?
PL: Incorrect - only 300k

> 2. What additional services other than Ms Jane Flegg's role as Joint Company Secretary does OKAP provide to Range that warrants fees exceeding $1m per year - and what (if any) personal benefit do you receive from these fees?
PL: No direct personal benefit - Okap provides fully serviced offices in Perth, London, Dallas - full financial CFO, accountants, book keepers, company secretarial , investor and shareholder relations, in house legal, technical and corporate advisory (access to both dedicated and split staff of over 15) - the cost is far in excess of the fee hence why it is shared with other listed companies in certain areas - feel free to do a comparison of costs with similar companies

> 3. Why are Range directors fees and emoluments NOT related to performance metrics including profitability, dividend payments and sp performance?
PL: How would that change things given our real financial reward comes from the shares we hold and have paid for - again please do a comparison


> 4. What is the cash position of Range's Trinidad operation - are we creating positve free cash flow and if not, how long before we do?
PL: We already create free cash - it is all re-invested into new development (wells and waterflood)


> 5. It has been estimated that we have only $6M cash left - how do you see the company being financed ongoing without a major dilution?
PL: As announced It is called texas sale, debt and up front factoring of oil sales - we have numerous offers which will be finalised shortly (that is on debt and factoring) - texas offers scheduled (as announced) later this month

> 6. Has Range been through a prior consolidation exercise before in its history - if so, what was the material benefit to shareholders?
PL: Yes - allowed range to raise initial money ($25m) for puntland in 2007 - without it no institution would have invested - if the wells had come in i believe you wouldn't be asking the question

> 7. Given the Puntland dusters and the cost over-runs, what is the likelihood that Range or Rover will need to go to the market and or shareholders for cash to enable it to participate in any future Puntland campaigns?
PL: Too early to say - see q5

> 8. Please can you clarify the position and relationship between Range and Strait in Georgia and confirm when Range will benefit from income derived from Gas sales?
PL: Range owns 45% of strait plus priority cost recovery arrangements so yes it will benefit

9. Why has the company not engaged the services of Vialogy plc who have a stellar track record of accurately interpreting Seismic data to improve drill accuracy?
PL: Our technical team are aware of vialogy and it will be considered for current Georgia and Colombia programs - we have only done 1 other seismic program as operator and it wasn't put forward by the team

> 10. Did Range lend $2m to Continental Coal? If yes, why and when will it be repaid and with what benefit accruing to Range?
PL: Yes , settled and got 3x the interest rate that we would have got with cash at bank


> 11. A BB poster, claiming to be a Top 20 investor, asserts he had a private meeting with you very recently and solicited information and assurances that he intimated were not available to other shareholders. If this meeting did indeed take place, please will you share the full content of these discussions with all shareholders?
PL: Are you suggesting that every meeting I have with every shareholder (institutional , large or small retail ) - of which dozens (if not hundreds taking into account group meetings happen every year - be recorded and shared - I am unaware of any assurances made that are not available to other shareholders

>
> I am assessing whether with Georgia and Puntland - the two major exploratory mega plays - both failing to come good (so far), the company has the ability to remain an exciting investment and whether management can be relied upon to act in shareholders best interests, meet deadlines and generally deliver its promises.
>
> PL: These are genuine concerns from a long standing shareholder and I look forward to constructive responses in due course. Always available to chat


ok - that's it...plenty to mull over...some reassurances......would like to see Vialogy in the mix for Puntland downstream too