wow paul.. up late drinking??? man you know so much about me.....

wow paul.. up late drinking???  man you know so much about me..

so lets consider some of these facts... Chris H is my best friend?? really.. so let me think, i don t know his birthday, nor where he lives, other than he is based in WA.. nor do i know his wifes name and if he had any kids... only met him at roadshows on occasions and at one oil conference in sydney years back..  i invested in ADI years back when they were exploring the eagleford in the very early days..

my investment in xst was a few years back. when you were running it.. i recall speaking to chris about another matter one day on the phone and  he mentioned he was in a share looking at Californian gas, he said maybe check it out one day.., then told me to call you if i wanted to know more.. i recall many enthusiastic conversations with you and your connections and your very close friends in SGC ... you constantly told me of  the promise of a farmout and  a well being drilled shortly, mind you this was in the prime of gas prices in california when doing a deal would have been a no brainer...  and  xst price range was extremely high.. and i was buying on market.. then after a year you totally failed in achieving anything.  yes i had massive losses following you.. i recall it well.


as for the the performance of xst since you departed and sold out all your shares and hammered the share price down relentlessly... i recall you calling me to get support to unseat the board, then after that you never called me again?? then suddenly you went from a person that was always enthusiastic and excitable with me in your emails and phone calls to complete opposite...  your hot copper rants against me were unbelievable.. for me, i did not want the board unseated and my measly shareholding really did not have impact.. but for you, this was unconscionable,  you and your consortium were very vindictive and spiteful of me personally throughout just because i did not desire nor support a board change. something you would not respect was someone elses opinion at all..  but i also recall your efforts to disparage and ridicule the directors of xst and sgc and  your futile and damaging  efforts to unseat the board of XST which failed dismally.. with all that going on xst could not seriously look at the business at hand and made the possibility of any farmouts even more difficult..  i think there were deep impacts from this in the following 12 months post the failed unseating of the board by you..

now you seem to be openly criticizing what you told me were your best friends in sgc, and state over and over that they achieved nothing..   i am not familiar with the number of potential farm out partners that went on with SGC, but reading the reports from sgc they were constantly stating the possibility of a deal and a well year in year out... so i assume some progress and potential farmouts went on during that phase of the global oil and gas price crash

as for XST and 720 days of zero during this global oil and gas price crash.. yes, its easy to see there was no definitive deal done in the most difficult of  global oil and gas meltdowns.. its been a period of very difficult times to get anyone to go exploration drilling..   back then  i put this share in the bottom draw for a long while after the unseating attempt by you.. i  did not take much notice of the share after that.. i did review all my investments about 6 months back...   i did not even know cosimo was on the board and completely missed the turn in direction that XST took

Revised Growth Strategy

The Board intends to pursue a revised strategy of adding low operating cost, conventional oil and gas production assets with undeveloped reserves to the Company’s portfolio. Such assets are favourably priced in the current oil price environment and provide the opportunity to access additional production and reserves in the event of rising oil or gas prices. It is intended that such lower risk production assets will provide cash flow continuity and compliment XST’s existing high impact appraisal and exploration portfolio in the Sacramento basin.

Executive Director Appointment

The Company announced the appointment of Mr Cosimo Damiano to the Board of XST as an Executive Director. Mr Damiano will assist XST to pursue, assess and secure funding for additions to the portfolio in line with the Company’s revised strategy. He has extensive experience in North America, representing the Mercuria Group as a Director of Upstream Investments and represented Mercuria’s Board interests in the company’s oil and gas investments throughout North America located in California and North Dakota.

Mr Damiano’s remuneration will be based on a small retainer plus a day rate for actual productive days worked there by securing access to committed skills while minimising fixed overhead.

Planned Activity – December 2015 Quarter

Continue to evaluate value‐adding opportunities where undeveloped reserves can be
accessed in the event of rising oil or gas price

Continue discussions with interested companies to farm‐out the Dempsey, Alvares and
Arnaudo prospects

Continue to firm drilling preparations for Dempsey and the feasibility of a potential re‐entry and flow‐test programme for Alvares


since then i have been adding to the share.... which for me is basically diluting my very high entry average and losses i had from believing you and buying back then..... but i am underwater still in xst....  but its my choice.. if xst fails to deliver then thats my fault, not XST... just as you had failed dismally to achieve anything for XST, and I had to wear massive losses, and i blame myself, not you..   i equally stand to have further losses if the current board fails in its objectives and new direction

So as i see it, in the first year post the global oil price collapse and the attempted unseating of the board by you, no farm out happened... then a change happened in XST in last 12 months, but looking at the above, it seems the farm out is moving along. there is a new partner in the mix, and sgc seems to be progressing towards leasing land and i imagine soon they will be raising some capital for a well one day also..

XST has in the last 12 months taken on a new board member, moved its focus from the exploration portfolio into an new focus and model.. gained support from new shareholders with very encouraging faith and respect for cosimo, and the company is now looking at a very contrarian way of achieving value and growth..

as for stating i should move on paul.. pretty sure i  will be both holding and adding to xst... particularly if xst achieves any phase 2 or 3 success..  i think the support for cosimo by the new shareholders is evident and my view is that he has the skill base to achieve his objectives

as for me i do not believe you own xst shares at all.. nor do I accept nor share your personal view that belief is Cosimo is akin to believing in fairy tales, and i absolutely dont share your disparaging and unsubstantiated remarks that the company will be taken over by chinese, which to me when reading that sounded almost like a pauline hanson rant..