Ann: STX: Strike Increases Exposure to West Erregulla, page-12

I totally agree @jake0002. I have a few observations and thoughts.
1. STX was obliged to make a disclosure as a substantial shareholder, so they have to put forward some sort of rationale. It doesn't have to be anything other than that. So my view is the story has much further to play out.
2. The idea that this "investment" is the best use of shareholder money they can make does not wash with me if this is just a passive position. As @jake0002 said, they exercise absolutely no influence as it stands.
3. the best use of shareholder funds on would imagine would be to put the funds towards finding extra gas and/or development of Project Haber.
4. From here STX will certainly look to go past 10% which MIGHT make some sense to deter another player from mounting a takeover IE. 90% compulsory acquisition threshold. But if they are serious about having a meaningful economic interest, they would not be seeking less than 20%.
5. They don't have to use equity to pursue this further...there is always debt from perhaps Macquarie, and also the scrip offer. This is where it gets interesting as WGO has previously rejected the 1.2 STX shares per WGO share offer. By its own admission STX has identified WGO as undervalued at present. Any new offer will need to be above 1.2 shares IMO to gain board support at WGO.

I am a buyer of WGO at around the current levels for the two reasons of 1. It's cheap given what it has...and 2. WGO is in play!

All IMO

regards
DF