Beach last week bought out Origins share of the Perth Basin for $1.1billion. Kerry Stokes is associated with Beach. The negiotions for the purchase of Origins share of the Perth basin, including Waitsia, took place before Xanadu struck Oil. This brings a new player into the mix of entities getting a foothold here. Origin leaving is one less but Origin is concentrated elsewhere. Stokes is a committed Western Australian and he usually doesn't make too many mistakes.
Grasping at straws you might say .... I don't think so. This discovery is, I believe, significant.
I think that they have missed the top of the structure and are contemplating having another go.
If you consider that the structure is like a hill, only underground, they have drilled a hole down the side of it and what they want is to find the peak.
You could understand the miss by their use of radiogravitational survey .... not a 3D seismic. That is also why they had such a hard time to sell down the shares in the drill and had to retain such a small percentage for ownership. The establishment didnot want to take a risk with drilling without the 3D seismic but that was going to be expensive as it was offshore. Money that NWE didnot have.
So we have drilled the hole and we have struck Oil slightly in the wrong place.
The test results will tell us a whole lot more.
I am not panicing.
It has filled the gap. Amazing as that is. I still don't understand why that "old wives tale works".
GLTAH
NWE Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
