As I posted Redfern your damned if you do and damned if you...

As I posted Redfern your damned if you do and damned if you don't there is no easy solution when you have no income but still have to exist and move forward. In the end Management are the only ones aware of all the facts and if you can't trust then sell out.

I have been trying to find an Aussie oiler doing much the same as WHL, that is finding offshore leases, then find partners and do it with no production income or proven reserves and priced on potential. FAR is one and makes for interesting reading, they are further on in the process, with drilling happening now and they may have reserves with the latest well.
They have 2.7Bil shares on offer and a MC of $227 Mil.

You can never compare companies exactly as they are all different but it is good to see the issues, the setbacks, the successes, the timelines , expenses and the cash raises involved in having a similar strategy and how it reflects in their chart. I see their 15% share of the last well, which had a setback, cost $24Mil so the well cost north of $120Mil all up !!!gives an indication of costs involved . Our African offshore wells being shallow are expected to be nearer $30 Mil.

Just the fact their current well found oil (not yet tested or comfirmed commercial ) was enough to increase their MC around $120 Mil or around 10 x our total MC , that is course why one punts in the penny dreadfull sector its got it's name for a reason , high risk high reward and weighted towards risk.

A good find in either of our leases would have a profound effect on the shareprice but first we need them to commit and then have success. Probably the biggest thing WHL has going for it and it shares with FAR is we have large operators involved in what appear to be prospective leases and with 3D.


Cheers Whisky