Ann: Warrego Farms-out 50% of EPA-127 to Mitsui, page-37

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29/12/21

09:38

Post #: 58542286
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Originally posted by invertedva: ↑

I really don't get the logic of this deal.
WGO is fully cashed up (one of it's few near term strengths) so could easily cover the cost of some 3D seismic and an initial well even (depending how deep), and cover their WE obligations (unless they are thinking debt funding will not be forthcoming and they have to use equity).
And the amount of capital being injected is miniscule, i.e. probably doesnt even cover the wages of a few senior management.
And why would Mitsui want it, in the next few years, other than land banking, while the exploration game further south plays out.
The main reason I can think of why WGO would even bother with such a deal is to outsource credibility (i.e. all future announcements will say "we are partnering with Mitsui") after their reputation has taken such a hit in WA O&G circles.
Otherwise just hold onto it and do some work on it themselves, right?
Really weird.
Management quality matters.

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Beats partnering with Talon .....

WGO Price at posting: 11.5¢ Sentiment: Buy Disclosure: Held
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Ann: Warrego Farms-out 50% of EPA-127 to Mitsui, page-37

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