This is the message I just sent. You can send something similar...

This is the message I just sent. You can send something similar here:

http://www.ngenergy.com.au/contact-us.htm


Please make sure this commentary reaches both the Board of directors and Mr Arnett.

Dear Mr Arnett,

I am a very long term shareholder in NGE with a substantial share position. First, let me say I am happy that the sale of 50% of PPL 269 finally closed. That's good news for all shareholders. I do appreciate how difficult it can be to work in the PNG since I've also owned positions in IOC and HWO.

However, subsequent developments do not sound like good news to me. I've basically had enough of the way this company has been run.

Under this board of directors, the share price has been decimated. This has nothing to do with the collapse in hydrocarbon pricing but everything to do with management and the board.

There is no clear direction for generating shareholder value, other than hoping for more farm-outs. Frankly I do not trust this board to steward the cash position and build shareholder value.

I am going to vote against all the proposals for the general meeting. I will list the reasons why:

(1) How did the board determine a salary of 360k for you in a company that has done so appallingly badly?

I appreciate you managed to close one sale and keep the company afloat, but this compensation is completely out of line for a company with this market cap and this horrible a shareholder return.

In my opinion, 200k is more than sufficient compensation until shareholders see some real return.

(2) Why has there been no clear statement about why we entered the rig management business and how that segment has performed?

Is our partner company connected to people on the board of directors? There appears to be a connection with Bromley.  

Comments from IOC suggest that the rig has been incompetently managed. As a shareholder, I would like a complete accounting of the status, cash flow, day rates, costs for this rig venture.

I look forward to seeing a clear disclosure.

(3) The options grants are very generous and highly dilutive, again. There are 60M options offered at 0.02 to you and the directors.

The size and pricing on those options is much too low. I would tolerate 0.05 options of order 5M to staff and 5M to the board.

In the current situation, costs should be kept minimal. I am not interested in seeing the cash in the company burned in G&A expenses.

Salaries should be kept at a very reduced level, staff kept minimal, and the director compensation kept nominal.

It is not as if this company is actively drilling and completing wells, or has even produced a game plan.   

(4) It's long past time to replace this board, which has failed to both protect and generate shareholder value. We need a shareholder representative, who will actually look out for the best interests of shareholders.

I would serve at no cost (and skype participation if needed), simply to protect my share interests. I've been involved in small cap oil and gas investments for 15+ years.   

I do not know if there are regulatory hurdles for a US based investor to serve on the board of an Australian company.

Regardless, I'd like to see fresh blood with real ideas on the board.

(5) The company is aimless currently. There is no clear plan to generate shareholder wealth, other than hoping for more farm outs.

In the short term, some share consolidation is not unreasonable. The company should also be buying back shares in the market each time the market cap drops below cash value. That is always accretive to shareholders.

Dilution needs to STOP NOW. You have diluted shareholders endlessly over the years.

(6) The general meeting should have skype (no cost) or call in participation for foreign shareholders like myself and listen, and express comments.

Summary: I am sorry if these comments sound harsh, but I have long past my patience with the way this company has been run.

I look forward to a revised reasonable agenda for the general meeting and a response to each of my queries.

Best,