Reduced equity, page-2

As a non-holder you may not be aware that every year there is a thing called a AGM (Annual General Meeting) shareholders vote on the remuneration report. You are welcome to purchase shares and vote at this meeting.

The majority of the losses can be pegged back to the NSW Government decision to suspend it's operations for Rosella as we all know. Now this "loss" is recoverable as MEL is seeking compensation for damaged to cover drilling cancellation costs, higher costs for future drilling, overhead costs while the court action was taking place, delays to its exploration and development program, and damage to investor confidence.
(you can read this in the annual report BTW)


Although labour costs isn't included in the overhead costs a successful claim would provide significantly equity for MEL to pursue it's activities. Now some of you have confused by "compensation" with a buy-back, this maybe new to you but compensation is due for only Rosella where the NSW government has to pay a amount of money for it's poor decision making.

As i have explained in a previous post my metrics for compensation is in excess of $10milllion+ a large component of this is a claim for "damages" if MEL can argue a direct correlation of loss through investor confidence and share price pre-rosella and post NSW government decision (40% loss would equate to about $9million+ or like isaks has suggest a claim for 80% loss at 2-.25 cents would equate to a $18million+) factor in direct losses, overheads and delays i'm sure MEL has properly quantified this amount for the court submission.

The other option is buy-back which.....

Metgasco has made it clear to the NSW Government that should it prefer to make the Northern Rivers gas free rather than support Metgaco’s lawful operations and compensate Metgasco for the damages caused by the Government’s actions, it must buy Metgasco’s licences at terms that reflect the facts that Metgasco has, in good faith, invested $128 million in operations on licences issued and renewed by successive governments over more than 10 years, and that Metgasco has established significant coal seam gas reserves and identified exciting conventional gas potential.