has texon taken a red bull?, page-10

stlamc,

Re wandoo: yes there is an increase in ares from 32,000 sqm to 82,000 sq miles. Its why Dave is getting another 3m options.

You'll also note that both Dave & John get over riding royalies over net proceeds from oil sales. To be honest the options don't worry me greatly given the uplift factor (ie 150% of the strike price before they can be exercised). To me that provides a nice alignment of interests with all shareholders. The volume is the major thing I'd debate and given the errors he's made possibly include investor relations in Des Olling's responsibilities before he got a "performance bonus".

The royalities on the other hand ...I don't like them at all! Between Dave & John they can take up to 5% of the net proceeds from anything in the original 32,000 sq miles and Dave can take up to 4.5% of the new 50,000 sq mile addition.

So this equates to them getting paid (above and beyond their salaries) regardless of what the share price does and also regardless of whether Wandoo does the analysis of the land (ie if new leases are provided by a third party Dave & John can still get a "commission")

Not sure this isn't a breach of the corps act obligation for directors to act in the best interests of the company.

Might have a chat to some of the larger shareholders to see what they think....