re: Ann: EGM Notice of Meeting and proxy mail... Gee, I think...

re: Ann: EGM Notice of Meeting and proxy mail... Gee, I think we're skimming over these extraordinary meeting amendments too lightly -- or am I just getting cynical :-) Am I reading this document right?

First, Wandoo (director and former CEO Mason) gets a royalty interest in production, which varies with the negotiated landowner royalty (Wandoo gets more when landowner gets less, in the 20-25% royalty range). This rate is lower for the non-3D red survey areas. This arrangement isn't new, just extended, apparently beyond the blue area to the red area. Wandoo (Mason) gets this royalty in return for its analysis of the Seitel seismic data. Texon therefore relies on Wandoo (one of Texon's directors) to analyze data sold publicly by a major seismic data company. Further, according to a source last November, Texon apparently "funds Wandoo’s costs in hiring project mappers" for this process. Plus, Wandoo gets incentive options in TXN shares for its contractor work. In other words, other than possibly buying the sesimic data, Texon pays Wandoo's bills.

Dave Mason may be the world's best oil finder, and I value director Rowley's expertise as a business leader and therefore his recommendation (clause 1.9). Still, shareholders need to be aware of the possibly high conflict of interest here and lack of market competition for seismic analysis services. there might even be a violation of contractor vs employment laws (when a contractor's resources are funded by a company, that contractor may be deemed to be an employee for employment purposes, particularly if the contractor has no other clients.)

Second, the later amendments change the dates of the options pricing from 1st Sept to 1st Jan 2013. The argument is to align the dates with the Wandoo amendment. But that's not a valid argument because the Wandoo amendment is in the same document. Why didn't they just write the Wandoo date as 1st Sept -- same as the date agreed for the others in the May general meeting. The only explanation is the ambiguous statement (top of pg. 14):
"In this regard, the attention of the shareholders is drawn to the announcement made to the ASX by the Company on 28 June 2012 in relation to the progress of the monetization of its Eagle Ford Assets."

Is the options date change a subtle indication of imminent sale or, as I suspect, the sale will be delayed until 2013?

Comments please!