Lockyer Deep - From the horse's mouth OR What the JV partner really thinks about Lockyer Gas, page-314

First 314 Last

Share
Profile

Follow
soltrader

153 Posts.

43

04/03/23

20:26

Post #: 66605121
Share

Originally posted by Lithos: ↑

Suggest you refocus to the profile view of the Kingia sandstone.

* CE is about to/has already picked the pockets of NWE shareholders who have already accepted the offer should Lockyer Deep2 come in as the EMV analysis forecasts.

* You might recall that in 2Q 2019, STX/WGO's 65MMScf/d test of the Nth Erregulla discovery was described at the time as "staggering". Lockyer Deep #1 tested at 110 MMScf/d, the best well test in the history of the Perth Basin. Hancock energy just paid 38cps for WGO's 50%. Initial offer was ~20cps.

* I expect MIN to close the current offer (currently mid March) before Lockyer Deep #2 reaches target depth. If the well is an out and out success, he can then make a new offer of say 12-15c to the remaining shareholders and get full ownership before a three well programme in 2H 2023. In this case he does not have to make-whole the, say, 70-80% that had already accepted the initial offer, so it is not a lot of money to MIN in the scheme of things.

I cannot see MIN attaining 90% with a well result as close as it is, where is the downside: (1) Lockyer 2 disappoints - the chances that it is as lousy as the MIN bid is low; (2) Problems with the drilling - always possible - but as they have already drilled the structure, this is low also in opinion.

Expand

I guess he can make another offer before drilling the other 3 wells. But isn't he limited by the 3% creep rule?

I think 1st drill should be done in the next 2 months. Don't they move on to NED-1?
I think time will be of the essence, as STX will be waiting for the rig.

Last edited by soltrader: 04/03/23

NWE Price at posting: 6.7¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

SS1

Sun Silver submits US$60M Silver Paste Funding Application to US DoE

End of FY is a time to juggle wins, losses and capital gains taxes

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

Eurozone-based companies find new ways to secure a regional lithium supply

Time for retail therapy buying in the shopping Scentre for hot stocks