auto. i saw a great quote yesterday: unless someone is open to looking at other perspectives there is little point discussing a matter with them.
stx have views of what would be approp ratio based on their knowledge of current asset and potential of other assets. our challenge here is that STX would know with conosderable more detail what (potentially) lies wothin their 100% owned tennaments further south in the perth basin. they would also ascribe a potential value to wgo other assets but again that is limited to 'what is publically known'. there in lies the gap that will most likely never be bridged.
for me i sae the offer as more of a merger and in a merger there needs to be upside for both parties. where as wgo shareholders seem to be seeing this as a take over and want 'full price' or even a premium valuation.
i was originally in the merge / take over camp. as a share hokder in both i thought that was the best way forward but the more i look into both conpanies the more i now absolutely sit in the don't merge group. i am a believer in the bigger perth basin story and strongly feel that the 100% tennaments that STX holds contains multiple targets. for stx to merge at full value of the current asset will cause massive dilution for existing shareholders on this bigger picture vision.
what i also see with wgo is a company whos goal is to sell out of their 50% holding as soon as someone is willing to pay what they want. their action to lime the pockets of sophisticated investors in the last capital raising as a funding tool evidences that for me.
stx and wgo have massively different visions. wgo want to get 2p resources proven up then sell. stx want to build a massive gas exploration and salea company. stx has more than enough tagets to drill in the perth basin alone for the next 5 years ,. . at 100% ownership which literwlly cost them pennies to take them to this vision. they dont need to pay 'full price' for west errugula and in fact doing so would be to the detrimebt of existing shareholders. we could be impatient and want to buy wgo . . or be patient and find respurces 3 x 5 x 10 x what we wojld get from wgo for literally 1000th of the price . . yes stx remember what those UIL tennaments cost us
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so my hope. prove up 2p. wgo sells out . . make money. stx gets bankable resource to get funding (no more share dilution) and over next 5 years develops the monster resource that sits within the perth basin.
two strategies . . two wins. one small short term. one massive long term
