That NSW is open for business has to be shown to be a fact and not just an empty slogan.

This is Mr Lincoln Augustus, first second cousin of Holymagimon

We have just been to the Sunday service by the Reverend Moshe Goldblum and a fine old service it was. We met the Reverend this morning before he led the service, or maybe should I say that the Reverend met us.

For we were sitting in the shade of the old bunyan tree outside the Church, finishing off a few Red Stripes and partaking of some very nice Jamaicca Numba One that Holymagimon had brought along for us, that we may concentrate on the meaning of the service better. The Church blackboard said that the Service today was going to be from Isaiah 53:7, and we God-fearing souls had to fortify ourselves for the message.

And so we sat there, lay around, drinking the Red Stripes and smoking the Jamaicca Numba One Extra Spejil Blend and seeing angels dancing all around us in the morning sunlight, when the Reverend Moshe Goldblum hurried by, all decked out in his fine robes, rushing to the Church from Lordy knows where. Alvin the Idiot stage whispered to us that the Reverend had probably been instilling the wrath of the Lord on some poor fallen soul all night, to make her arise a complete person again in the morning, and I think the Reverend overheard us, because he suddenly stopped and came over.

He smiled at us, he drank a couple of our Red Stripes, he praised Holymagimon’s Numba One as being most blessed and divine, the nectar of the Gods, and then, as he took a final long swig of the Red Stripes, he looked straight at Alvin the Idiot and said that there were many fallen sinners everywhere awaiting great salvation, and if only Alvin the Idiot had read the Book of Exodus, he would have discovered there that the Staff of Moses was indeed capable of performing great miracles. And with that, with a final deep puff of the Jamaicca Numba One Extra Spejil, he stood up, buttoned his pants, grabbed a full bottle of the Red Stripes and hurried into the Church.

The sermon was good, great and very uplifting. The Reverend Moshe Goldblum had a glass of water on the pulpit which had miraculously turned into the colour of Red Stripe, and he spoke with the mind of a person who truly believed that Jamaicca Numba One was special. And we listened in hushed tones as he led us through the parable of the lambs being led to the slaughter, Isaiah 53:7

“He was oppressed, and he was afflicted, yet he opened not his mouth: he is brought as a lamb to the slaughter, and as a sheep before her shearers is dumb, so he openeth not his mouth.” King James Bible

And I must confess, brothers, that my mind drifted at that point to thoughts of those whom we had chosen to lead us in the path of righteousness, in the path of truth and in defiance of evil, who would appear to have failed us so miserably, be they politicians who could not stand fast and succumbed for fear of losing their seats and jobs and wages in the face of lies upon lies upon more mistruths broadcast by loudmouthed broadcasters and anarchists who believe in nothing but their own egos, pleasures and self-interest and who would be best advised to educate themselves better on topics they rant ignorantly about, or be they those whom we had put our trust in, to fight the good fight for us, only to see them cravenly collapse, for reasons only they and their gods would ever know or understand.

And while my mind was so occupied, helped in no small measure by the Jamaicca Numba One Extra Spejil that Holymagimon was thoughtfully passing along to us who sat there in the back seats of the Hall of God so that we felt fully the pain and fury of the Reverend Goldblum’s words, the good Reverend took a mighty gulp of the water that had turned to Red stripes before him, then branched off to talk about those who would sell us to the Devil, of Judas Iscariot, son of Simon Iscariot, who betrayed the Lord for thirty pieces of tarnished silver.

And the Reverend Moshe Goldblum said that there were cowards and cheats among us who would sell us all, just like Judas Iscariot had sold our Lord, for some small reward, be they politicians, third rate small minded radio jocks or those who would lead us, and that they should hang their heads, for surely they would be answerable to the Lord and the heavens on Judgement Day when the Kingdom comes.

It was most awe inspiring, and the Reverend Goldblum spoke like a true messenger of God, like a man whose mind had been possessed by some stranger inner spirits mightier than the Jamaicca Numba One.

And so we are now sitting back under the bunyan tree, mulling on the Reverend’s words and on life in general.

And Holymagimon has been telling us about how he has just negotiated and bought a fine farm just outside Jamaica. It is very interesting, this tale that Holymagimon is telling. Holymagimon was wanting to buy this farm for a very long time, as the land is barren, just right for growing the Jamaicca Numba One Turd Grade for the no hopers and drifters who hang around in this neighbourhood of Jamaica.

VOTE NO TO THE BOARD’S RECOMMENDATION.

Anyway, Holymagimon was very happy because he had just bought the farm with proven Jamaicca Numba One Turd Grade growing on it that the previous people had spent lots of money developing and cultivating, worth 150 million dollars, for less than a sixth of its value from the Metho Land Holding Company, because of the non-existent negotiating skills of the brothers from the land of Yesso who were that land’s owners.

And Uncle Tobias could only shake his head and say “poor company shareholders, that they be led by such ignorants,” as he took another puff of the Spejil Blend, shaking his head in mirth and happiness for Holymagimon’s luck in dealing with such incompetents. Holymagimon smiled, took a deep draw of the Numba One, then knowingly replied that there is little skill needed when negotiating with those who were out of their depth, because he had found that every time they had opened their mouths, the selling price had gone lower.

Baboo Runchik then told us that this reminded him about a book he had once read called “The Peter Principle”.

Uncle Tobias had also read the book and he said that it was a jolly good book about incompetency in leadership. We asked him what it was all about, and Alvin the Idiot, who knows all about idiots, saved a lot of words by googling it on the new Commodore 64.

So we googled “Peter Principle” and found that according to Wikipedia:

“The Peter principle is a concept in management theory formulated by Laurence J. Peter in which the selection of a candidate for a position is based on the candidate's performance in their current role, rather than on abilities relevant to the intended role. Thus, employees only stop being promoted once they can no longer perform effectively, and "managers rise to the level of their incompetence."


VOTE NO TO THE BOARD’S RECOMMENDATION.


So, to summarise the Peter Principle, what this means is that people get promoted till they reach the level where they manage to destroy the company by their incompetence and hubris.

There must be many many company Boards to whom this Peter Principle applies. Peter Principle…an easily remembered reference for incompetency among the Kitchener Generals in the Western Front.

There must be many leaders who are promoted to their levels of incompetence. There are many leaders now who assume they can lead when they are hopelessly and totally out of their depth, who have gone to battles and negotiations like latter day Neville Chamberlains, who then come to us with modern day Munich agreements which they recommend we accept, and then tell us that they have a message of “Peace for our Time”.


VOTE NO TO THE BOARD’S RECOMMENDATION.


And these leaders will fail those who follow them, lock stock and barrel, through their complete ignorance and incompetence. The Peter Principle at work.

And they will take their followers down with them, with their hubris and absolute incompetence.


VOTE NO TO THE BOARD’S RECOMMENDATION.


But I stray, my mind meanders, and we should come back to matters at hand, for if the truth is to be known, the family is utterly confounded and most unimpressed with this Metgasco Board’s decision to recommend to shareholders that they take what appears to be a piece of tarnished brass in lieu of a piece of gold.

In the Metgasco announcement dated 2nd November 2015, the following is stated:

“Metgasco’s Chairman, Mr Len Gill, said “This has been a difficult decision for the Board. The company has invested heavily in the Clarence Moreton Basin for over ten years and has had significant success in demonstrating large gas resources. It has many loyal shareholders, many of whom live in the licence areas and invested in the company because of the benefits a gas industry would bring to the region”.

‘While the identified gas resources could have a significant value if developed in an efficient and timely manner, the Board has to consider the risks associated with ongoing project approval delays, higher costs and difficulties funding activities over the next few years.”

Does Mr Gill mean that we are living in a communist state where a company is not allowed its legal protection and rights to conduct its legal duties towards its shareholders because of political agendas? If it is so, why does he not say it out in simple words? If it is not so, then what exactly does he mean by his words?

“Mr Gill also said “More details about the company’s plans for the future will be released before the shareholder meeting. There is a strong worldwide demand for oil and gas, a demand that will continue for the foreseeable future. The depressed oil and gas market at present makes it an ideal time to pursue new oil and gas opportunities. Metgasco has reviewed a number of opportunities over the last two years and is confident of securing attractive opportunities, particularly when it can negotiate without uncertainties associated with its NSW assets.”

Alvin the Idiot thinks that this the most brilliant piece of prose that he has ever read, and that it will rank higher than anything found in the great British literature like Fawlty Towers. In fact, one can almost imagine Basil Fawlty standing there in the foyer of his hotel in his moth eaten tweed jacket saying something just like that in his attempt to educate and encourage his bumbling Manuel.

VOTE NO TO THE BOARD’S RECOMMENDATION

But we confess that Mr Gill’s words fill us with trepidation.

For frighteningly to us, the Board members appear to be overestimating their abilities, for it appears to us that they intend to use this pittance that they hope to get in their hands by agreeing to the Government’s terms and conditions, to involve Metgasco in more deals that could turn out to be just like that horribly mind blowing ELK deal that they got the company involved in. The family can only shake its head in wonderment and disbelief.  The thought of  living through another ELK deal that could be done by this Metgasco Board is enough to keep us  quaking in our boots for several lifetimes.

We do not know how much money Metgasco eventually made or lost at the conclusion of that ELKdeal, and would be grateful if anyone could fill us in on that.

VOTE NO TO THE BOARD’S RECOMMENDATION.


On 12th November 2015, in a Metgasco announcement, Mr Gill stated that:

“We wish to advise that three of Metgasco’s top shareholders, who together control more than 18% of the issued shares, have advised that they support the Board’s recommendation.”

How wonderful, we all thought. Holymagimon brought out his 50 year old Directors Reserve Cut Extraa Spejjil Numba Vun for celebrations of such confidence in the Board. We put two and two together and found out that this 18% had to include ERMs 12.87%. And if a big company like ERM had confidence in this Metgasco Board, then we lesser souls should have no doubts in our minds that this must be a really awfully clever Board that we have leading us.

So imagine our utter shock and dismay when we read on 13th November 2015 an announcement from Metgasco that ERM had sold off all its shares, lock stock and barrel, and it was completely out.

Is this the kind of support Mr Len Gill meant when he said that three of Metgasco’s top shareholders who together control more than 18% of the issued shares have advised Metgasco that they support the Board’s recommendations?

So, if those whom the Board claimed to support their actions sold out of the company, does that now mean that we should all sell our shares if we too support this Board’s recommendations?

Or is there another side to this story, and could it just be that confidence in this Board’s recommendation has been lost by some major share-holders after deep reflection, and they have then decided to sell completely and get out?

If that is the case, then we feel that it is imperative that the Board immediately put out an ASX announcement stating this fact, so that shareholders do not continue to be misled by the announcement Mr Gill made on 12th November 2015.


VOTE NO TO THE BOARD’S RECOMMENDATION.

And finally we come to the negotiations that the company had with the Government. Who did the negotiating, and from what baseline did the company start negotiations? At what level did the Board pitch its initial demands? As shareholders, we have a right to know.

We feel that under the guise of a secrecy clause in the negotiations, the owners of the company (the shareholders) are being denied information on the true facts of what happened in the negotiations that our representatives, the Metgasco Board, had with the Government in the disposal of our assets.

Perhaps an application made under Freedom of Information could help inform us better?

Metgasco was vindicated by the Supreme Court on 24th April 2015. So why did it take the Board until 1st September 2015 (Company announcement) to inform us that it was initiating court action against the NSW Government for the unlawful suspension of the Company’s Rosella drilling?

Mr Peter Henderson stated in an announcement on 1st September 2015 that:

““Metgasco would have preferred to settle its claim for 2014 suspension damages with the New South Wales Government out of court and is happy to resume good-faith discussions with Government in this respect, but not at the expense of having to indefinitely suspend its business activities,” added Mr Henderson.”

We wonder how the Board could have been so naive as not to have realised that there is no such thing as having good-faith discussions with a Government that had already acted unlawfully towards Metgasco without any justification? The only way to negotiate would have been, in the family’s opinion and experience, to negotiate hard and brutally against those who would cause our demise in the advancement of their own betterment and political gains.

If there was a reason, any lawful reason, why Metgasco was suspended and its good name tarnished by being referred to ICAC, then the family would have wanted to hear those matters clarified by both Minister Roberts and the Office of Coal Seam Gas in an unbiased Court of Law. If the Board had made an error, either through omission or commission, whether advertently or inadvertently, then the Court case would have cleared the air.

VOTE NO TO THE BOARD’S RECOMMENDATION.

And most importantly, it would have given this Baird Government and minister Roberts and the Office of Coal Seam Gas the chance to explain themselves freely and without fetters, in an open court of law, under cross-examination, about the reasons for referring Metgasco to ICAC, so that the good name of Metgasco could remain untarnished by innuendo.

http://www.australianmining.com.au/news/metgasco-s-csg-drilling-permit-suspended-referred

It is our humble opinion that this delay by the Board in even starting court proceedings has resulted in matters not being resolved in a court of law, with shareholders now facing the prospect of for ever not being given the chance to know the truth as to why Minister Roberts and the Office of Coal Seam Gas acted as they did. We find it hard to understand why this Board did not proceed immediately to take legal action to clear Metgasco’s name.

In the Metgasco announcement on 10 November 2015, on the top of page 9, the Board states that:

“Despite the clear need for additional gas on the eastern coast of Australia, no companies have approached Metgasco to acquire all or part of its exploration licence and gas resource rights either through corporate activities or farmin deals, indicating that there is little appetite for this NSW opportunity at recent trading levels (ie; market capitalisation in the order of $22million).

“2.3.3Potential for a higher offer

“Metgasco’s Board considered rejecting the Government’s offer and proceeding with the Company’s exploration and court activities in the hope of receiving a higher offer from Government. The Board decided that there was no basis to believe that a higher offer would be forthcoming in the near to medium term.”

We are of the opinion that a major contributon to these assertions happening would be that Metgasco has not had a chance to clear its reputation and has the perceived albatross of an ICAC referral hanging around its good name.

If the Board thinks that the ICAC referral was not a seriously material issue, then perhaps they could confirm that they would have no qualms about involving Metgasco in future in a deal with another company that has been made dubious by an ICAC referral. Mud sticks.

VOTE NO TO THE BOARD’S RECOMMENDATION so that Metgasco can get on with the Court case, for we urgently need to have the NSW Government show in court that there is absolutely no sovereign risk at all, whether real or perceived, in doing business in NSW, and that Metgasco has not been subjected to illegal, politically expedient pressures.

VOTE NO TO THE BOARD’S RECOMMENDATION.

We feel that the Board cannot let Metgasco shareholders be the lambs led to the slaughter without fighting for our rights and assets to the very end.

Isaiah 53:7
“He was oppressed, and he was afflicted, yet he opened not his mouth: he is brought as a lamb to the slaughter, and as a sheep before her shearers is dumb, so he openeth not his mouth.” King James Bible -

VOTE NO TO THE BOARD’S RECOMMENDATION.

It is the family’s opinion that the Board caved in when the Government made them that “final offer”.  It is our opinion that the Board would find that $25,000,000 most useful to keep the company going for the next few years, pay the Directors their yearly fees, pay the MD his salary and perks of office, pay someone to man the phones while there is nothing else happening, pay for a very nicely situated office in Sydney with all modern conveniences in the heart of North Sydney (when it would  be very much cheaper to have a small office and all the staff in  Casino, as our main work is in Casino, and  the Board and MD would have been more accessible to the local people for community consultation on a daily basis) and all sorts of other such expenses that a “first tier” ASX company like Metgasco would need.

And we must not forget the rising cost of the coffee and biscuits that the company will incur, as the family believes the price of Arnotts Tim Tam Chocolate Biscuits is going up soon in NSW.

And are we expected to accept that we will have to keep on incurring such expenses in a company that is in a forced dormancy?

Something else that the family finds alarming is that the board is asking us to agree (top of page 10 of announcement made on 12th Nov 2015), as part of the settlement, to guarantee to the Government (under 2.4 Key Terms of the Deed of Settlement) that:

2.4 (f)
Key representations and warranties
The Company and the directors will discontinue and release the State from any pending claims or proceedings in relation to the Licences.

2.4 (g)
Indemnities
The Company and the directors must indemnify the State against all claims by the Company and its related entities in relation to the Licences.

What this means is that this Board has negotiated to effectively stop shareholders from ever suing this or any future NSW Government if that NSW Government suddenly decided that the gas which has been proven up by Metgasco and certified by an independent certifier is too valuable to be left in the ground.

PREVIOUS CERTIFIED RESERVES
a. 2.7 petajoules of 1P reserves
b. 298 petajoules of 2P reserves
c. 1538 petajoules of 3P reserves of coal seam gas,
d. and the Lord knows how many thousands of petajoules of 1P reserves from the Mackeller Conventional Gas Field)

VOTE NO TO THE BOARD’S RECOMMENDATION.


And we feel that there is every possibility that a present or future NSW Government will most likely sell these leases with proven reserves for an enormous sum to some big gas company in a few years time, when NSW is in the depths of a self inflicted gas crisis, and the family assumes that perhaps at that point, some politicians will pat themselves on how clever they were, and they will perhaps indulge in a few bottles of Grange Hermitage or perhaps even recommend annual outings on some developer’s boat or God knows what.

And what will the long suffering Metgasco shareholders get then? Zilch. Nothing, when it was our hard earned money which we invested as risk capital into Metgasco (long before any member of this present Board showed their faces on the Board) which was used to prove up these reserves. We risked our money at a time when there was no sovereign risk apparent in NSW.

Had we lost our risk capital on unsuccessful drilling, we would not feel so hurt, we would not be so upset, we would not feel cheated in any way, because that is what exploration is all about. That was the calculated risk we took.

But we did not lose our investments in the drilling we did.

In fact, Metgasco was very successful in its drilling program. We proved up the above certified reserves, which will always intrinsically be very valuable. We are sure that Metgasco could have easily started selling this gas, if it had not been hampered by ever changing and increasingly onerous  NSW Government regulations, into Casino homes and local industries there, thereby bringing the whole region a stable gas supply, jobs, infrastructure and prosperity.

We lost our investments when the NSW Government started changing the rules that applied to our operations to suit its political agenda. Perhaps some people in power had had too much free Grange Hermitage that made their minds so forgetful that they forgot that if a company  performs its lawful activities within the framework of the law, then there is no legal reason or justification to obstruct or hinder it from proceeding withits activities just because some people disapprove of it.

It is our opinion that we have a NSW Government that has bowed down to the loud voices of a misinformed minority. And that as a result, Metgasco shareholders have been turned into the innocent lambs led to the slaughter.

VOTE NO TO THE BOARD’S RECOMMENDATION.

The Metgasco Board should have demanded in their negotiations that this Government give Metgasco shareholders an iron clad guarantee that there will never be any gas drilling or production of gas permitted from Metgasco’s leases, ever.

If this Government is honest in its intention to never ever produce gas from the proven reserves in these leases of Metgasco, then it should have had no qualms on writing into the negotiations that the final shareholders on the books (or their beneficiaries) on the day of settlement would be given an override Royalty of 10% of gross revenue from all gas and petroleum sales from these leases in perpetuity.

It works out into a win-win situation for all parties concerned, as follows:

A. If the Government never ever develops Metgasco’s leases and gas reserves that we put our risk capital to prove up, then they would be offering us 10% of nothing for ever, which will cost the Government nothing more for ever.  So they will be offering us something extra which will really be nothing more, and so that will be a win-win situation for the Government.

B. But if this Government, or any subsequent Government ever decides that the gas is too valuable to be left sitting in the ground and sells the leases and proven reserves for development, then whoever intending to buy these leases will know upfront that they will have to pay the final Metgasco shareholders (who were on the books on the day that the leases were relinquished to the Government) 10% of all the gross sales of the gas annually forever, and this fact will be factored in into the final purchase price that  they offer the Government.  They will have to put less money upfront to purchase these valuable assets.  This will be a win-win for the purchaser.

C. But we feel strongly that the NSW Government will still definitely get much more money if and when they on-sell the leases than what they finally pay us.. In a gas crisis situation, this proven gas will be worth hundreds of millions of dollars. The NSW Government will be in a win-win situation, whatever happens, because they will make money on on-selling. A win-win situation for the Government

D. The purchaser of the leases would be buying a valuable asset with proven resources, plus valuable conventional reserves, thus negating a lot of exploration cost risks. This fact, and the fact that they were able to negotiate a better price from the on-selling NSW Government would easily negate the 10% royalties that they will have to set aside for Metgasco shareholders. Gas without risks in an era of NSW Government made gas crisis– a win-win situation for the purchaser.

E. And Metgasco shareholders or their beneficiaries will get yearly dividends  for ever if ever the leases are developed. A win-win situation for Metgasco shareholders.

F. And remember this well. Irrespective of whatever may or may not happen in the future, we are certain that the Metgasco share price will appreciate significantly on the very day this Government plays fair and gives us this guarantee that if they ever exploit our proven reserves, we shareholders will all share in a 10% royalty of gross sales. Another win-win for Metgasco shareholders.

So why has the Board not realised all this and why has it not demanded that this be written in the Agreement?

The Board should immediately demand that the Government write this into the Agreement to show good faith, and if the Government does not readily agree, then we can only draw one conclusion, and that is that the Government could be keeping its options open for using the proven reserves and the conventional gas at some future date for its own profit and that they are putting an unfair pressure on us because Metgasco is only a small company and not one of the big boys of gas.

The Board should break off negotiations with the Government immediately if the Government is not prepared to agree to the addition of this 10% Royalty Clause in the Agrement.

Then the Board should immediately go public and explain the reasons why the negotiations broke down, and why the Board feels that the Government is doing an asset and gas grab from the shareholders of Metgasco.

This NSW Government would then have to answer to all the Greens and hippies and others the reason why they were unable or unwilling to give an iron clad guarantee to Metgasco shareholders that there would never ever be gas production from Metgasco’s leases, guaranteed in the form of a 10% royalty to Metgasco’s long suffering shareholders. After all, this is the mantra that the National Party and labor and Green MPs have repeated again and again, that the Northern Rivers will be gas free forever.  So make it gas free for ever and pay us a penalty of 10% of gross gas sales revenue if you ever break this pledge.

The family is of the opinion that this has been one of the most dismal omissions in the negotiations that this Board did on behalf of long suffering shareholders, and it is something that this Board must immediately rectify.

This Board must reopen negotiations immediately for a better and fairer deal for Metgasco shareholders.

Remember this – Metgasco is not a willing seller.

The Government may claim that this is not a forced acquisition. But in truth, Metgasco is a law abiding and honest small company which has fulfilled all its legal obligations but has been forced, under duress, to negotiate with a Government which is changing the rules all the time, to our detriment.

VOTE NO TO THE BOARD’S RECOMMENDATION.
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Holymagimon is now hoping that the brothers and sisters on Hotcopper can all somehow get this message across to all their friends in all parts of Hotcopper and the general public, in the hope that they will in turn pass it along to anyone they know who has Metgasco shares, so that this message reaches as many Metgasco shareholders as possible.

Always remember that what has happened to Metgasco may very well happen next to some other company you hold shares in.

Metgasco shareholders need as many NO votes as possible to be cast by everyone who owns a parcel of shares so that shareholders can enter into new negotiations with this Liberal NSW Government to reach a just and proper settlement for shareholders.

THAT NSW IS OPEN FOR BUSINESS HAS TO BE SHOWN TO BE A FACT AND NOT JUST ANOTHER EMPTY MEANINGLESS SLOGAN

And so, my friends, the day is coming to a close, and a cool sea breeze envelops us, and the swirling smokes of the Numba One Spejjil and the deep amber of the cold Red Stripes give us great comfort.

As does the Reverend Moshe Goldblum, who has joined us with his two faithful disciples Margareeta and Henrietta for a quick taste of the Numba One before he retires for his daily night caps. The Reverend freely admits that he enjoys the little pleasures and perks that he encounters in his service to the Lord.

And he has asked us to tell the Board that if the NO vote gets through, then they would best commit to memory the Samuel Jackson Version of Ezekiel 25:17

“The path of the righteous man is beset on all sides by the iniquities of the selfish and the tyranny of evil men. Blessed is he, who in the name of charity and good will, shepherds the weak through the valley of darkness, for he is truly his brother’s keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who would attempt to poison and destroy my brothers. And you will know my name is the Lord when I lay my vengeance upon thee.” –

And Holymagimon has just smoked the smoke of the Jamaicca Numba One Spejjil Blend, drunk the Red Stripe, had a mouthful of the fish curry in rice and excitedly told us that he has a few jobs in the Numba One Turd Fields for those who may be looking for jobs in the near future, God willing.

Blessing of the Lord to all the bro-bros and sistaladymons

Mr Lincoln Augustus, Board member and executive Managing Director of Jammicca Numba One Exports. (annual salary $2,300)