Just so everyone is aware of the risk, as per WHL's releases, AWE can elect to enter the 2 well exploration drilling year by late October. 2 wells is a big cost commitment at their current 60% equity. They had a good discovery recently in the Perth basin and that may be their focus next year.
Have a read of the AWE Good Oil Presentation in September and you'll see absolutely no mention of forward work plans in Vic-p-67. Also have a look at AWE's ASX release re the WHL release on Vic-p-67 resource recently - absolutely no comment by AWE.
Also think about the timing for the rights issue - why now and not after AWE elect to go into the drilling phase if the Company were so confident.
Maybe things are not quite so rosey into the future. In my view if AWE pull out, so too will TAP and then WHL will be left to drill 2 wells in 2015 with no money to do it. What do you think the share price will do ?
QFY Price at posting:
0.9¢ Sentiment: None Disclosure: Not Held
