To put it in perspective ... KXL paid manageent fees of $940k and stock based compensation of $3 million in 2007.

Also note that in most cases management fees include "related party transactions".

For example, if director A was a lawyer and his firm was used for legal work, the legal fees would be accounted for in management fees. If Director B owned a geophysical survey company or even a drillig contractor, then fees paid to those companies would generally be included in Management fees under "Notes to financial statements".

Fom Sage's report almost $100k was for services provided by companies owned by the directors and/or management, $45k was paid to directors and management took only $215k in cash compensation.

Also note that for accounting purposes the amount of stock based compensation reported is not what was issued this year but what vested. If a director is given options, they vest over a period of time. SGX actually provide more than $3 million in stock based compensation (to management directors, employees and consultants) in 2008 that will vest over a number of years.

ALSO of note, most of the options are "out of the money" right now