survey on the proposed scheme of arrangement

Received a phone call this morning from a company engaged by the Board and Management of ESG doing a survey on the proposed Scheme of Arrangement. There were about 5 questions in total (I think).

My response to their questions for information only:

1. Had I received and read the Chairman's letter? Have not received the letter in the mail but had read it on my Commsec account. Also added, the Chairman's letter in my view did not give any more information on the board's rationale for their decision to go with STO; it was too little too late and sounded more like a letter from STO's Chairman.

2. Will I be voting for the Scheme? No as the offer was grossly inadequate in my view given the known size of resource and potential upside. Disappointed that unlike BOW, there was no proactive defensive action to the takeover and a classic defensive action should have been RESOURCE UPGRADE that has been over due since tha last statement in Dec'09.

3. If the Scheme did go through would I hold STO shares? No! There are other better investment opportunities.

4. Are you aware of political issues surrounding CSG and is that a concern to you? Yes aware of the issues but the resource is too significant to ignore and from my experience in the resource sector for 35 years in developing new projects, I know that workable solutions will be found in time to develop this resource. As a result, would not want to sell to STO as cheap as the current offer. Suggested offer cash price north of $2 would be closer to the target.
5. Any other comments to Board? Have not been impressed with Board action todate. Srongly recommend board and Executive Management change as they have lost their way in my view. Appoint New Board and Executive Management who are experienced, hungry and capable of commercialising this resource for both internal and external use. Personally prepared to wait another 5 years if necessary to develop this company.