Big Couple of Weeks for WDS, page-3

Two other things in WDS favour.
Sangomar is coming online next year. WDS currently has an 82% interest in the field. With the POO where it is, if it decided to do a sell down, it would make a motza. But, and here is the beauty of it, it doesn't need to do a sell down because it can fund the development without going into more debt or doing a share issue. It is not a distressed seller, which gives it a very very strong bargaining position. Also, when I look at a map, I get the impression that that field is closer to Europe than the middle East.

Secondly, Scarborough is approved. There can be no more slowing down the build process in the courts. As has been mentioned before, WDS now own 100% of Scarborough (that is all 4 gas fields (Scarborough, North Scarborough, Jupiter and Thebe)) and 51% of Pluto train 2. With the increased cash flow from Sangomar and BHPP assets, WDS just may have enough cash flow to fund the development themselves. Alternatively, if they sell down, they are not in a distressed state and so can negotiate a price from a position of strength.

Meg is riding on the shoulders of Peter Coleman. Peter spent years fitting all the pieces together to set up WDS for the long term. He bought assets cheaply, and all that hard work is now paying off. Meg is doing a great job managing the politics, and she needs to execute the projects well, but she did have a roadmap given to her on a silver platter. I give my congratulations to the board for managing WDS so well.

HT!