In addition, a letter to The Directors , Cooper Energy Limited with a request to convene a General Meeting pursuant to Section 249D of the Corporations Act 2001, was sent. The return envelope is addressed to "Cooper-energy-wasted-energy.com c/- Eddie Smith Burnal Pty Ltd etc.
Cooper Directors have 21 days after the request is given to call a meeting to be held not later than 2 months after the request is given to the company...google Section 249D as above to get the timing of the upcoming meeting.
Eddie appears to be 'stirring the pot' to get a takeover or merger under-way so that he can flog his 12M or so shares and pick up a few million dollars.
It appears that Eddie is up to his old tricks:
"Odin Energy, controlled by Perth corporate consultant, Alex Bajada and longtime corporate investment player Eddie Smith, who is involved with Impress Energy, have each put up proposals that would transformed VicPet through selling its assets."
Eddie picked up >$13M when Beach bought his shares in Impress Energy. Expect Beach to take a keen interest in Cooper before a general Meeting is held as "Beach are keen to add reserves Securing additional acreage in key western flank permits is a strategic imperative for Beach"
Edward (Eddie) Smith Bumal Pty Ltd PO Box465 Cloverdale WA 6105 Dear Fellow Shareholder. COOPER ENERGY LIMITED WHERE DO WE GO FROM HERE? I have had an investment in Cooper Energy Limited ("Cooper" or the "Company") for some time and I am often asked the question: 'What's wrong with Cooper and why hasn't it lived up to its promises?" I am sure that you, as a fellow shareholder. must also ask yourself the same question and have the feeling that a lot of promises have been made and broken and that a lot of opportunities have been lost. Telerztioo aese maa e Teculoo 04 rite 610044V 444 &dr Cr4 Mal ? emcee-daft as etteutafeoreett 61 tfav if you look at the Cooper share price record over the last month, six months, year or even longer you must inevitably come to the conclusion that the market believes Cooper has both over-promised and under-delivered, There's that old saying "'without leadership there's no management, and without management there's no leadership". So what can we as the owners of Cooper, do to correct this problem? There is, of course, a temptation to do nothing and to just sit back and hope that the existing Directors and management will ultimately find their way or "get lucky'. However I don't believe this is a sensible way for us to manage our investments. We have heard from the Company that "following a number of Board strategy sessions" that the Managing Director Mr Michael Scott has moved on. But does this mean that the Company's strategy has changed or is changing? This has not been explained. Will it simply be more of the same with a new Managing Director? Surely the Board needs to change as well, I doubt that the existing Directors would consider employing a new Managing Director who does not hold the same opinions that they have held for the past six years. So we must assume that the strategy will continue to be more of the same. Broker research indicates a valuation of somewhere between 60 and 80 cents for each Cooper share. Same brokers have even suggested valuations (based on upside cases) of greater than $1.00. But we must ask ourselves why our shares have not traded up to these levels in years and why are our shares now trading at little more than cash backing?
p2
The answer must be that the market is telling us that whilst we may have some good assets our Directors and management have a record of underperformance. Forget the suggested defence that all junior oil companies are being punished by the market. This is not true. You only have to look at our long term share performance chart compared to our peers with decent cash flows similar to our Cooper Basin operations. Our Directors and management have chosen a scatter gun approach of chasing international projects rather than focussing on its core assets in the Cooper Basin, managing those efficiently and returning value to shareholders. We now find ourselves with a company supporting the lifestyles of its Directors and management. So what can be done, if anything, to maximise the return on our investment before it is all withered away? The simple "do nothing" approach would be to just keep pushing ahead with the same management - this will not work, A second approach would be to face reality and liquidate all of the Company's assets and return the funds to shareholders. Or thirdly, as suggested recently by one analyst, is to be taken over by, or merge with another company with complementary assets. My strong opinion, after reviewing all of the possibilities open to Cooper is that we cannot continue on with the same broken structure, even with a new Managing Director. The time has come for a wholesale change to the Board otherwise nothing will change to maximise shareholder wealth. I have been approached by a number of small shareholders to assist in bringing about a change in Cooper. However, in order to bring about this change I need your support. Enclosed is a letter to Cooper's Board, requesting it to call a Section 249D General Meeting of shareholders to allow the shareholders the opportunity to elect new directors, and if thought fit remove the existing Directors. In order to request a 249D meeting the Corporations Act requires shareholders with at least 5% of the voting power of the Company support the call for such a meeting, At present I own about 4% of the Company, If you are interested in a change at Cooper, would you kindly sign and return the enclosed 'Request to convene a 249D General Meeting", if possible by return post, Thank you for taking the time to read this letter. Kind Regards Eddie Smith 15th August 2011 Mobile: 0418 927 091
COE Price at posting:
43.5¢ Sentiment: Buy Disclosure: Held
(20min delay)