watsom 1 and mickzedI don't generally get into intraday banter,...

watsom 1 and mickzed

I don't generally get into intraday banter, however, a few comments.

STX has put out a few presentations that compare WE2 to Waitsia. The one in link below from 3 April 2019, slide 11, points to the value that Mitsui ascribed to AWE's share of Waitsia:

https://www.asx.com.au/asxpdf/20190403/pdf/44408q0z82rxl7.pdf

So if you estimate (or plug-in) a resource net to STX for WE2 and apply what the AWE acquisition suggests is a valuation metric per PJ (or Bcf) then you can get in the ballpark. Then divide by number of STX shares on issue to estimate the potential value per share that could reasonably be ascribed to STX from this discovery.

A reminder - we havent cased the final section yet so not only is the net resource still an unknown (and will be a best estimate for a while yet) there are still some risk issues around execution to factor in to any valuation.

As to PGY and KEY I've no idea. I checked their respective market caps, $6m and $15m. The first thing you should do is check their latest quarterly reports and the cash position! Assume these are nearology plays in the Perth Basin. Michaeljob put out a comprehensive post on the Perth Basin a couple of days ago. A must read! I'd also suggest you follow the Good Oil Conference this week and learn any and everything possible around what the WE2 discovery and also the upcoming work planned by Mitsui/Beach means for the broader Perth Basin. The STX presentation is likely to be the most detailed of all. But be careful, it takes an enormous amount of vision, opportunity, capital, time, execution and luck to take a micro-cap and build material value.

Have said it before but you need to be clear on why you are investing and stay true to that. For me industry thematics/market opportunity are important together with confidence in the Company's Board/management(leadership/technical/execution capability)/top 20 shareholders.

This for example is why I'm in STX and not WGO. Where would WGO be today without STX. That said I understand why some in the short-term may see WGO as having greater short-term upside that STX. But I couldn't be bothered flip-flopping from one to the other chasing say 2 times return rather than 1.5 times and then dealing with timing issues and tax issues associated with being in/out of a stock quickly. I'm in STX for what I'm hopeful is a many multiples from today return and I consider they have the ambition (to be a multi-billion dollar company) , the Perth Basin runway (West Erregulla + UIL permits) execution capability and hopefully the market opportunity to achieve that. So yes I see myself being in this story for at least the next 18 months. But the key thing for me is I knowing why I'm here. You still get a few wrong but hopefully the winners win big!!

Good to luck!!

Adaltiora