Australia's largest stock trading and investment forum Australia's #1 stock forum

WGO

Click for more information

0.00%

35.5¢ warrego energy limited

Ann: Warrego raises $15 million via two-tranche placement, page-84

First 84 Last

Share
Profile

Follow
ddzx

37,911 Posts.

828

27/05/20

11:39

Post #: 44863729
Share

Originally posted by Al99 ↑

Time to ignore the merger talk and discuss value. These are some rough numbers to chew on.

WGO has 723m shares on issue (fully diluted) with another 115m coming from the placement.

At 18 cents, the WGO Mkt cap is $150m and subtracting about $20m cash, an EV of $130m.

STX has 1,766m shares on issue (fully diluted).

At 20 cents, the STX Mkt cap is $352m and subtracting about $22m cash, an EV of $330m.

So, the premium in EV is $200m which can be attributed to management, PB acreage, Jaws and Operatorship.

In the real world, these premiums look high and difficult to justify, IMHO.

That is the reason I am currently buying WGO shares even after getting a good fill in the Placement at 13 cents.

Clearly, the 2 shares are closely tied in a valuation sense as the main asset in both portfolios is currently WE. I just believe that the relative values are out of kilter.

All IMHO and DYOR. No advise offered, just a few facts.

PS I also own STX shares.

AL

Expand

the premium is attributed to the south Erregulla tenement adjoining the JV, which STX holds 100% and has estimated 1.4 TCF

the other assets look crap

Last edited by ddzx: 27/05/20

WGO Price at posting: 16.5¢ Sentiment: None Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

CBL

Control Bionics expands into UK and Irish markets with NeuroNode device

YAL

Yancoal makes it into the ASX200 in latest S&P rebalance

RMX

Red Mountain Mining: record gold prices, two projects, two greenstone belts

CNB

Carnaby Resources hits copper at Mohawk, QLD

GDC

Global Data Centres not clear on future operations after AirTrunk sale payout

There are more pages in this discussion • 197 more messages in this thread...

First 84 Last

Add WGO (ASX) to my watchlist