Ann: Strike increases ownership of Warrego to 19.9%, page-247

How do you figure that, mnjp? Serious question - I'm not being smart.

I am but a humble scribbler, but it seems to me Strike has the whip hand, not Gina.

Hancock will end up owning something like 80 per cent of Warrego and Strike 20 per cent. Having not reached the 90 per cent threshold, Hancock can not compulsorily acquire Strike's shares, so one would assume Strike will retain them and rightly demand a board seat.

Strike, not Hancock, will be the operator calling the shots on the appraisal and development of WE. It seems to me that as junior partner Hancock might huff and puff a lot in JV meetings but would at the end of the day need to acquiesce to Strike's calls.

As to a capital raise, Strike did so recently and is now well placed to reach cashflow positive status when Walyering comes on line in first half 2023. I can't see the company needing cash as badly as your scenario suggests.

Have I missed something?

Now having said all that, I do not for one moment think Gina will be content to own 80 per cent of a Mickey Mouse company and just 40 per cent of a fabulous asset. Warrego is surely an entree, not a main course. Strike is the obvious target and today's trading suggests we might be seeing the beginnings of sustained selling to create panic in retail holders and pressure on the Board. I expect us to have the shite shorted out of us in the next few months, whether by Hancock or its agents or others. (I almost sold some at 36 cents but was not game ... just in case.)

The question now is, who else emerges from the ruck? There is too much gas and too many heavy hitters seeking it to allow Strike and Hancock unfettered access to most of the Basin.

Never mind the waffle it released today, Beach will be privately furious at having been knocked over so easily and will be plotting its next move. Then what of Mitsui, Santos, Woodside, etc?

In its release this week, Strike made a point of stressing its focus on strategic options, of which I dare say there will be many. Based on their track record to date, I have faith our Board will pilot its way through the shenanigans of the next few months to reach cashflow, which in itself will expand our options.

I really would like you to expand on your theory that Gina now has us where she wants us. I've been a member of the cheer squad elsewhere to my cost and would appreciate a contrary view to consider.

OOO