Forget the $1.5m carry - most here seem to think the block has been given away. Currently, WGO doesn't have the permit - it is still only an application. No work has been done and there is no data in the block. it's an 8000 sq. km block of land. The core Perth basin is now tightly held so Mitsui is probably looking for green pastures...
Bringing Mitsui into the permit brings: - Work program probably fully funded for 2 years - technical knowledge of Mitsui Geo's - remembering this is the old AWE team who discovered Waitsia - Access to a capable seismic team and drilling team if Mitsui operates from year 3 as stated - Mitsui's access to NW Shelf for export of any discovery - brings a well funded credible JV partner for the regulator to consider when approving the permit.
The block has no value today but WGO shareholders now get a free ride for 2 years while the techies work up the play.
WGO Price at posting:
12.0¢ Sentiment: Buy Disclosure: Not Held
