I have today sent by "snail mail" the following letter to LDM....

I have today sent by "snail mail" the following letter to LDM. If you are of a like mind, you may wish to do something similar.


The Nexus between Energy and share price improvement

Dear Mr Della Martina,

I have been a shareholder of Nexus Energy for about 2 years, and during that time have ridden the volatile roller coaster of the company's share price - mostly in the wrong direction.

I believe Nexus Energy's share price is fundamentally undervaluing the company, which has both valuable producing assets, valuable interests in developing assets and valuable exploration assets with potentially significant prospective potential.

I believe you and the Chairman have a wealth of experience and knowledge, which if applied consistently, effectively, and over time, can unlock both the current value and the potential value of the company to be directly reflected in the share price.

However this is not currently occurring, and in the last six months the opposite has occurred and to a dramatic degree - this is unsatisfactory.

The current share price is circa 7c , and I believe the current fair value (considering the current risk/reward "warts and all") is circa 20c and I believe the potential value is circa 50c (at least) - I do not expect you to comment on these estimates.

The gap between 20c per share, and 50c per share will take (amongst other things), a resolution of the SEDCO litigation, a resolution of the current issues around LNG/FLNG and the WA Government, further significant exploration activities, execution and management of some well structured deals, much hard work and most importantly time.

The gap between 7c per share and 20c per share requires a much better story being told about Nexus, and understood by the market, to garner interest by a much wider group of investors looking for the opportunity to benefit from the closure of the gap between a depressed share price and a fair valuation of the company. I do not believe you and the Board are doing enough in this regard.

Currently Nexus Energy is "huddled in a dark corner", quietly cowering, ignored, shunned, with a share price collapsing upon itself into a tighter and tighter foetal position - this is not good enough.

The Board separated with the prior MD Mr Cottee because of a divergence of views on strategy. I believe the Board made the right call - reducing the risk for the company and it's shareholders by restructuring the Crux deal with Shell so as to preserve the ability to play for more certain realisation of medium term value, rather than the high risk strategy that Mr Cottee proposed.

However, Mr Cottee, had profile, and "made a splash"' he was "noisy and known" - and the Nexus share price benefitted from this attention.

Nexus Energy needs attention to get a better sentiment and a better recognition in the market and amongst prospective investors - you and the Board need to do much, much more here.

The Nexus between getting the share price from 20c to 50c is "elbow grease" and time - and lots of both....BUT...

The Nexus between getting the share price from 7c to 20c is the Energy you and the Board put into raising the profile of the business and highlighting how deeply below fair value the current share price is. In this regard, an ASX announcement citing broker valuations is not enough, you need to become a "talking head" - on Lateline, on Business Sunday, in the press and wherever thinking investors attention can be attracted.


Mr Della Martina, I am an unhappy shareholder, but not an unreasonable one. I don't doubt your skills or your commitment.

However , my "remuneration" is under threat because of how the Nexus share price has fallen under your and the Board's stewardship, so I intend to place your remuneration "under threat" by voting against the Remuneration Report at the next AGM and I am encouraging other shareholder's to do the same - aiming for a "first strike".

I don't need a reply to this letter, your overt and public actions to improve and raise the profile of the company and to get the share price moving back to where it should be will be answer enough.

Yours Sincerely,