Hi All Not sure WGO are part of anyone’s plans, Strike included....

Hi All

Not sure WGO are part of anyone’s plans, Strike included. I reckon they shot their bolt when they rejected Strike’s offer last March.

That offer of 1.2 STX shares for one WGO share would have delivered Warrego shareholders 31% of the merged company. Since then, Strike has matured its non-JV assets, unveiled Project Haber and acquired the geothermal rights to the Basin. It has also raised $80 million in capital to secure those opportunities.

And Warrego? Nothing much bar hanging on to our coattails.

If Strike revisited the WGO deal now, under the same conditions, Warrego shareholders would own just 25% of the new company.

To my mind, the wonder is not that WGO directors spurned Strike’s offer, it’s that Strike made the offer in the first place. It is unlikely to be repeated and if it were Strike shareholders would likely tar and feather the Board for coughing up value for nothing.

I hasten to add I am not having a crack at Warrego. It’s just that I don’t see it being relevant to our prospects. And if it’s irrelevant to us, then why on earth would a major bother?

Raising shiteloads of cash now ensures we continue to be masters of our own destiny. Any TO offer would need to be astronomical to have any chance and that’s unlikely at least until SE comes good. If I were Santos/Beach et al I wouldn’t be prepared to gamble a knockout blow against a 39% chance that a discovery won’t happen.

OOO