I am invested for the potential in the Permian basin.
There is no arguing our JV partner has painted a better story.
The argument over what will generate the better return won’t be answered until one of the companies gets bought out.
My guess is that Warrego will be the first to go as they don’t have the same scale of unproven ground that investors attribute to their market cap.
I think it’s obvious that most of the value for wgo is in EP469. One would only assume at the end of the campaign they would be the first (and perhaps the only of the two) to go up for sale. By that stage, assuming successful drills of we 4 & 5 it would be surprising if we haven’t already had a few knocks on the door.
I think we will trend sideways for a few months until we have more progress on the campaign.
WGO Price at posting:
23.5¢ Sentiment: Buy Disclosure: Held
