Thanks for the post Kwaidan!Great reading as I don’t get access...

Thanks for the post Kwaidan!

Great reading as I don’t get access to this stuff in the UK. But it still doesn’t change my mind. I think it only reinforces what we have been saying all along. This is not a situation that has been in the best interest of shareholders.

And certainly Ferguson’s role was to see the CRUX field developed and act in the national interests. It was great to read about Shell. So basically this is how I interpret it. Shell considered the gas from CRUX critical to their business case for Prelude FLNG. They were basically holding out in the confidence that Nexus were too incompetent to commercialise the asset and that one day Nexus would come knocking at Shell’s door.

I bet RC being appointed at Nexus did worry a few at Shell. But they must have cracked open the beers when they saw the announcement on the 22nd of September last year that RC had walked out and wondered why they ever had any doubts.

I suppose it’s easy in hindsight to look back. But our company did make some interesting decisions to commercialise the CRUX asset since the time that I had been following the company. And it all came back to constrain us in the end. Our board should write a book about the true art of how not to negotiate on a key asset! They broke the rules for simple supply and demand!

How did a company with a world class asset of CRUX end up in this situation??

Back to the reason I’m writing. Does anyone have the contact details for M&G Investment Funds?

I had enough of this board when RC walked out. Something didn’t smell right and nothing that I’ve heard or read since has changed my mind.

I’m not willing to just sit here and watch our company haemorrhage to the point where my investment becomes a 100% tax write off. The long-term shareholders have invested a lot of money along the way and there is no plausible excuse the board can give for the situation we found ourselves in. Heads need to roll!

I’m sick of reading posts from these Johnny come lately investors brag about how good this deal is. I followed this company since 2006 and invested in 2007. Like many others, when the company came calling for more money along the way, I paid. Although I couldn’t afford the last rights issue and it turned out by luck that I didn’t halve that money.

Every time the company it was all about realising the promised return from CRUX. I’ve never had a problem riding the ups and downs in the share price in the knowledge that I would see a return commence in 2014. I think a 7-10 year investment timeframe for a significant return on investment is acceptable. After all every investment should have an exit strategy. But 17 years for the returns to start??? C’mon? Whose interests did these guys act in?

And still no one has posted anything that gives me any satisfaction that I’m going to see a significantly higher share price in 10 years time. There are quite a few posters that keep telling us it’s a great deal. Well, I hate to tell you, the market is telling you that it’s not as great as you and the Board of Directors say it is! Otherwise our share price would be in the high 30’s or 40’s.

The way I call it, our Chairman making a statement that they have secured a future on an asset because they were too incompetent to realise it themselves was not a great outcome. Our company is still without a CEO. It’s now 4 months and who would take on the role at our company now? I’d say our company is close to a basket case.

And you can bet that these guys are going to come asking for money again in the next 10 years. We’ve got a sizeable chunk of debt that is due for repayment in 2014. I know I won’t be giving these guys another cent if it is them that are still at the head of this company!

Obviously there are people much wealthier than me posting on this forum, who can afford to keep throwing good money after bad. But I can’t afford to invest in a company run by people that have an enviable track record of constantly destroying capital.

If this deal means that we have something more valuable to sell, then great. I’d rather we sell off CRUX and return the money to shareholders. Then leave Shell shareholders to wait the 10 years. At least their company is making profits and paying dividends. There was some article on The Age website covering the future prospects of large LNG projects in Australia and their economics. It didn’t sound all that promising to me. I did have a laugh though because I thought if I interpreted it correctly, it meant the clowns running our company timed their entry perfectly… When everyone else was getting out! Looks like Woodside is selling their stake down.

I still believe given the circumstances, a standalone liquids project would have been the best option for our company. But clearly they couldn’t get the Chinese deal over the line. It probably had a clause in there that they would only deal if Mr Fowler wasn’t Chairman of the company :-)))

If the oil price had of crashed, I could understand. But the overall project fundamentals must still stand. I had written a four page letter to the board of directors and received no response. I challenged them to release the financials to the market so that we can assess the merits of this great deal for shareholders. My question was whether this was their great $7m a year strategy for the Nexus Energy share price to finally reflect the true value of our CRUX asset.

I think we would probably be better off to have our company’s assets auctioned off and the money returned so that we can invest it elsewhere. At least there’ll be someone more competent to look after our money and have some chance of making our losses back. Ourselves! Or for those that were fortunate to have bought in below 20 cents, make a great return on your money.

I’m not going to accept that I should just sell out and move on. I know that the net assets of this company are worth far more than 20.5 cents. Unfortunately, the guys that think they’re doing a great job to make us money are the cause of our share price sitting at 20.5 cents. They just don’t get it!!!

I think it’s time for a fresh start. Ok, we’re in the situation we’re in. Now let’s get someone in there that can work out what is the best way to get money back to shareholders. If it means waiting 10 years, well and good, have someone with credibiltiy and a plan for the future explain it to me. If it means packaging each of the assets into something more marketable and selling them off at a later date, great. But as I see it, some of these board members have been there way too long and have forgotten that they are custodians for us shareholders.

In my eyes they have no credibility and I lost confidence in them long ago. I believe that they will do the same with the CEO search. If we are to attract a great CEO, they need to be part of an exit strategy. Our company has to regain its excitement and potential. Otherwise a shareprice becomes the NPV of future known cashflows adjusted for risk.

The last time I can remember being excited about my investment in this company was when they made the surprise announcement that they had appointed Richard Cottee as joint Managing Director and Chief Executive Officer. Unfortunately, like everything this company has touched, that excitement was short lived.

So when is our share price ever going to reflect the true value of the CRUX asset, Mr Fowler???

Anyway, if someone has the contact details I’m going to contact M&G Investments and see what our options are. I agree we have limited options now, but we at least have the right to ensure that we have a board capable of pursuing our best interests.

ARobert