Hi lilac, It depends on what you mean by "crap". As far as...

Hi lilac,

It depends on what you mean by "crap".

As far as letters go, it was quite well written, with an easy flow and a feasible rationale. It put thoughts to paper, promoted opportunities for the future and seemed to adequately fit the context of the board's thinking. It conveyed that the board believe they are doing their job by putting forward the best deal they could get. All of that is great stuff to include in a letter to shareholders...

However...

Personally, I believe the context is all wrong. I can only imagine that many other shareholders, including myself, do not want to persevere with investments in other yet-to-be-identified projects that may result in nothing. I invested in Metgasco and its operations in the Northern Rivers, where the risk was whether or not the gas was there. Now, the risk has become social and political, with absolutely nothing to do with the company's exploration luck or prowess. In this sense, I want one of two things: for MEL to be allowed to continue its lawful operations; or for the government to pay a sum comparable to what was spent over the past 10 years. Now, either of those things may happen, but I was more than prepared for our case to be dragged through the courts, even if it took years. I believe we have the law on our side, and I was happy to let justice prevail, albeit with no defined timeline of events. By suggesting the acceptance of a petty offer of $25 million, the board is telling shareholders to roll over and live to fight another day, in the hope that better things lay ahead. If they see that as their job, then so be it. Who am I to judge what goes on in that environment? Unfortunately, I am human, and I have judged their actions, and I believe them to be misguided. I do not want the board worrying about looking after my investment for me. I do not want the board to worry about the current share price. I want the board to acknowledge that the company and its shareholders are in the right, and that shareholders deserve a better outcome. I can handle a loss, but not like this. It is a bit late now to start worrying about how much shareholders have lost over the years. Through my eyes, I want the board to run a business, not run away from conducting legitimate business. If the government wasn't willing to come to the party, then perhaps we should have gone in for the kill (all just an opinion, of course). This government isn't going to do us any favours, so why not use the law to give us a leg up. A yes vote removes our Ace - the legal right to compensation for an illegal suspension. That is just the very beginning!

Later in life, I can see an older me on the verge of tears with rage, as some smug, smiling politician announces the biggest investment in gas in the history of NSW, where one of the big players comes in and rips the NR to shreds. Some people will make a tonne of money from what Metgasco has spent the last 10 years doing, but it won't be us. Not with a yes vote, anyway. Unless the government announces that the NR region is to remain gas free forever, then we are going to get screwed, unless we stake our claim that whatever is there is ours, and we will not walk away from hundreds of millions of dollars worth of resources for a measly $25 million. The last time I went to school, those kinds of numbers just didn't add up.

Now, I don't want to go giving anyone dud advice. I do not know what happens if a no vote gets up. The government could very well say, "too bad, that was your chance, no gas is to be mined in the NR", thereby rendering our company useless, in which case, most would be begging for the same offer of $25 million to come back. Or, in an effort to protect the perception of NSW being investment friendly, they may wish to pay up bigger for the whole thing to just go away. Who knows? One way or another, we will find out in a couple of weeks just what this venture has in store. Personally, I am in for whatever fight comes our way. I just want a board who will sink their teeth in and claw away with broken nails until the last hope for justice has been exhausted. Only then will I feel satisfied that they have done their job, even if it means I have nothing left to show for it.

So, in coming back to your question, no, I do not think it was a "crap" letter... It just did nothing to give me confidence that any kind of result is coming our way if we follow this current board into the unknown.

And that, my friend, renders it hardly worth crapping on...

Good luck all.

AP