frajoh, heres what happened.
Someone finds out there two market sensitive announcements coming out. He then leaks it to his mates, assuming one is the JV farm in. This goes down the grape vine to big boys. Big boys pump it. Market gets excited, so they jump in and pump it.
They then announce the Gazettal offer. While this is good, its still years off doing anything, unless they do CR. They say their cash position wont change in 2012 which means nothing until 2013. So the announcement is "We bought a massive block that for the better part of 9 months is useless"
Next, The business update, otherwise known as the 'everything is ok' announcement. Why is it disappointing? They state that nobody will farm in, because they are not confident on WHN's interpretation of the area. Whats that mean? WHN can't prove that they are sitting on a crap load of oil, so nobody wants to commit farming into it.
Thus the beautiful cycle of WHN...
1) Acquire asset
2) Announce and pump SP
3) Big boys pick your pockets
4) Fizzle out
5) Discard asset
6) Go to 1
This has been done with wind farms, gas, shallow oil fields in US, now oil in Seychelles, they will sell it soon, focus on Gazettel and they'll buy some other asset to keep their cycle going.
The management of this company is a disgrace.
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