When I start to doubt myself and my belief in an investment I start to read and re read reports.....this is an excerpt of a report I read about Whn...
The northern Seychelles acreage was owned by a company called Black Marlin Energy Holdings. Six weeks after Black Marlin listed on the Toronto Stock Exchange it was acquired by Afren Plc in a scrip deal worth ~A$110 million. It can be inferred from the other assets in the Black Marlin portfolio that the Seychelles value accounted for 30-40% of the transaction value, or between $33 million and $44 million. Importantly, WHL holds nearly twice the Seychelles acreage as Black Marlin (21,426 sq km versus 11,249 sq km). Black Marlin is scheduled to drill a well on its acreage in Q1 2012, with a commitment required by November 2011. This should contribute to a substantial uplift in investor interest in the region. Although WHL’s acreage is not yet at drill-ready stage, the comparison is very interesting and relevant. Applying similar acreage values, WHL’s market value should be somewhere between $66 and $88 million. Its market capitalization is around $73 million, but this does not factor in any value for its recently advised Western Australian acreage deal.
A little patience
QFY Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
