Ann: Completion of Queensland Gas Project Due Dil, page-2

re: Ann: Completion of Queensland Gas Project... So the news is good but can someone explain to me about the shares?
40 million ordinary shares at .05 to raise $2M - Who are these shares for?
114 million ordinary shares, options and performance shares are for Longreach. The ordinary shares are to be issued at the trading price? The options are exercisable at .10 and have three years to expire. So what price do you think they will trade at?
The performance shares have to achieve .40 within 30 months and trade in that range for 15 days (VWAP). The next tranche is at .50 within 42 months (VWAP) and the last tranche .60 within 60 months (VWAP). All tranches have performance milestones that could also trigger the performance shares.
So does this mean potentially that short term we will have 228M shares on offer? Then if all the options are exercised 342M shares? Then if the three tranches are successful 684M shares on issue?
It looks like Longreach are getting a fantastic deal out of this is the potential there for the ordinary stock holder?