BROOKSIDE ENERGY LIMITED (ASX:BRK) - Ann: Quarterly Activities and Cashflow Report - June 2024, page-53 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by craig57 ↑

Thanks Dan for all the information , you did say that DP was only receiving $288, 000 a year from BRK .
I think this years wages $288,000 , over 15,000 free Shares this year (approx $165,000.00 ) Wages from BM (money from BRK approx $50,000.00 ) , loan from BRK at 3% which should be 8% to 10% saving him (approx $60,000 a year )
So DP this year will received approx $560,000 from BRK , he also has other jobs with other Companies .

Now we are a Oil Company not a Real Estate Company why do we need BM , could the Management and staff not Manage the Wells and furture developements by ourselves , with 49% ownership of BM what Income or Dividends do we receive from BM ? Are Management for BM the only ones receiving Income?
I hope I am wrong but have we not doubled the staff and administration and coropate cost in the last 2 years.

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Hi @craig57

DP's and board compensation form the 2023 annual report, which also shows the 2022 FY .

Base salary was AUD$ 276,000 for both years..

The board recognised DP's base salary was in low end of the peer group and determined for that to be rebased in 2024. I am assuming the rebase is $276,000 + $107,250 = $383,500 , based on the value of the 15,000,000 shares granted by shareholders at the AGM at 1.43 c per share ( $214,500) which was for STI entitlements for 2022 and 2023.

BRK have not disclosed who the peer group are, but I would assume it would be mostly ASX listed shares and possibly some USA groups operating in Oklahoma.

I found in the ATS ( Australis) annual report the peer group it compares to , which BRK is included in, so have copied the MD's salaries , etc below to see where DP stands. I didn't include KAR because I don't class that as a BRK peer ( yet)

Australis (ATS)

Note the fee's are in US$ so MD base salary in 2023 is US$ 223,901 or AUD$ ~340,000.

ATS haven't drilled a well in years .

Buru (BRU)

BRU had Eric as executive chairman ( retired 2023) $440,000 in 2022 and Nador as CEO $484,000 in 2023.

Restructured their operations after ROC gave them back the Ugani oilfield, which ROC paid $60 million for 50% back in 2018. BRU have just farmed out 70% of the field to Sabre ... guess the management deserve a big bonus for selling the oilfield twice!

Calima (CE1)

Glen, executive Chairman, and Jordan Kevol CEO 2022 and part 2023 $311,936 with Karl DeMong CEO 2023 $341,940.

A cash box after selling out of Canada, bar 1 well which gives them ~$350 k a year cashflow.. $ ~7 million in the bank

Carvarvon (CVN)

Adrian Cooke CEO ( left, pushed out) $ 610,028 in 2023.

Now a cashbox, after basin opening discoveries at Pheonix, Doarado and Pavo... development of these substantial offshore discoveries delayed due to cost inflation. CEO disposed, new management looking to exit assets and return cash.

Central Petroleum (CPT)

CEO salary adjusted down

Comet Ridge ( COI)

T McCaul CEO ~S470,000 in 2023

Cooper Energy (COE)

Maxwell CEO $893,306 in 2022, left before end FY 2023

FAR

Just a cashbox after selling it's 15% WI in offshore Senegal to Woodside .. payments in US$

Horizon (HZN)

Best company in the peer group IMO.

R Beament salary package on promotion to CEO

Otto ( OEl)

In the process of selling it's assets (like CEI did in early 2024) to distribute proceeds to shareholders.

M Ustler , CEO US$ 315,520 .

88E

Ashley doing well at finding hydrocarbon "indications" at $542,108 per year.

The "Raygun" of the peer group IMO.

Make your own conclusions regarding the MD's remuneration relative to company operations, outcomes and share holder returns in comparison to the peer group. The main thing I gleaned is BRK needs to step up it's game in reporting, disclosing STI, LTI parameters and KPI's, which I am hoping is going to be the case with the adoption of the recent incentive share scheme.

Yes DP is getting a benefit from the " loan" from the non cash funding of the option conversions. In effect it is akin to extending the option conversion date another 2 years out to June 2026. He will still need pay ~$1 million out of his pocket , plus accrued interest, which will be ~$120,000 if he pays out the loan in 2026.

Now briefly for the second part of you post.

In terms of payments from BM,( Black Mesa), DP doesn't get an extra directors fee/ salary as far as the accounts show.

BM were consolidated into the BRK accounts back in 2020 when they acquired all the outstanding funding equity from the the Tulsa group which gave them 51% of the shares in BM.

As @lobbo ( thanks mate) tagged you into the BM announcement from 23/2/2024, BRK now own 100% of BM, after acquiring the remining shares they didn't own from the BM executive team. The terms and conditions of the BM buyout are explained in the announcement.

Why do we need BM?.. because they are the management and staff that manage the wells and future developments. They are as you say it , " ourselves".

BRK's corporate office is in Perth, Australia, where it's only DP , Gracjan, and the company secretary ( ex the BOD). It would be hard to run a chook raffle, let alone the day to day operations of the company from there.

BRK's operational office is in Tulsa, Oklahoma , staffed by the BM ( now 100% BRK crew)..

The main new hire was Shane, a USA based CFO late last year. With the business growing in size, cash generation, and operational capability , I believe another 1-2 employees have come onboard to expand the team to 10 people. So yes, there has been an increase in staff and corporate costs .

Hope that helps

Cheers

Dan