This smells funny. In this day and age of theoretical full disclosure there is at least one major piece of information being withheld from shareholders. That is the current position on contingent reserves which given the timing of the seismic and the time since for processing should be at an advanced stage . NWE stated they did not want to release a contingent reserve figure prematurely in case they had to walk it back. This appeared to make sense at the time but is now biting us in the bottom.
For me and many other shareholders to assess the offer(s) we need to know what the seismic analysis suggests as a contingent reserve figure. This can be couched with all the usual risk warnings, BUT we need this disclosure to better understand potential asset value to assess the offer.
Clearly MR think the data we have not been privy to justifies a takeover bid. Clearly they tried to low ball shareholders first up and are likely still doing the same. They need to disclose that data so shareholders can make a fair and reasonable decision.
The fact these offers precede the new drilling suggest Min want to buy before the sp for NWE rises on the back of a highly probable good/great result.
Suspiciously the latest offer would tick a few incentive boxes.
As I said earlier, this smells funny/
I started my career as an "Investigating accountant". My nose is twitching.
Give us the full disclosure on what is known inhouse of the contingent and proven reserves as it stands right now. That is the minimum our board ought to provide.
Should this t/o proceed and the new drills come in gangbusters then I would think both Min and NWE directors and management could be in legal jeopardy for not providing sufficient disclosure of known reserve data and analysis.
NWE Price at posting:
7.0¢ Sentiment: Buy Disclosure: Held
