Ann: STX: WE5 Confirms High Quality Gas Resource, page-10

Have you considered approaching Macquarie Bank to buy your shares?

They value STX's 50% share of WE at some $750 million which is nearly 3 times the market cap of WGO with the same asset interest. And most importantly, they have valued the asset with no remaining risks...wonder how their own lending division will see that aspect?

Macquarie must have been blinded by STX's admirable net zero carbon push which their MD is betting his future bonuses on. Apart from the zero risk value of WE at about double the value that AWE's 50% interest in the then more advanced Waitsia field was acquired for (and which WGO current MD considered as a great deal at the time), Macquarie put a risked value of $172 million on STX's two development concepts even before STX's had found any gas for the urea project idea or had drilled any geothermal wells to prove the concept. And they also put a whopping risked value of $238 million on South Erregulla, currently an undrilled prospect requiring more seismic.

Not the typical conservative valuation one would normally expect from this institution!

WGO's share price is clearly held back by their need for a CR. The delay in the WE4 flow test no doubt resulting in some interesting dialogue between the two joint venture parties.