According to Peter Briggs we currently have $6,800,000 profit...

According to Peter Briggs we currently have $6,800,000 profit just from current flows. Isn't the market cap of this company $9,000,000? Strange!

Survivor from '80s stepping on the gas
Email Print Normal font Large font Ian Porter and Nabila Ahmed
August 31, 2006
FULL DISCLOSURE
Advertisement
AdvertisementPETER BRIGGS needed no introduction at a luncheon presentation yesterday for his Westralian Gas & Power (WGP) at Gary Morgan's "Morgans at 401" in Collins Street — the one decorated with an Antiques Roadshow sort of theme.
But introduced he was, by Morgan no less, who said it was a thrill to have one of the great "Australian entrepreneurs" in the room.
Briggsy himself was a bit more specific, saying that yes, he was a Western Australian mining entrepreneur from the '80s. "One of those dreadful people … but I'm still standing," Briggsy said to the 100 or so who rocked up to soak up some wisdom from the well-preserved master of the spec market.
WGP is an unusual beast as it has coal seam methane gas (CSM) in WA as its main focus. Briggsy asked the obvious question himself: "Why be in this business when WA is knee-deep in gas?" He reckons the answer in simple enough when you look at the cost of bringing North West Shelf gas to shore and then piping it all the way to Perth.
WGP is looking for CSM gas in areas much closer to the Perth market and according to Briggsy, the Government reckons there could be one-half trillion cubic feet of gas in just one part of WGP's ground. Water-handling issues go hand-in-hand with CSM gas production but Briggsy reckons he has a solution.
Just imagine if you could bottle it as the 400 million-year old water that it is and sell it to the Japanese. "It would be sensational." He was joking. We think.
WGP's other interests include oil production in Kentucky and traditional oil and gas exploration in the the offshore Perth Basin. Kentucky ain't the biggest show in town, producing a grand total of nine barrels a day. The plan is to lift output to 30 barrels a day by Christmas.
"You might say it is not worth bothering about, but at $US70 a barrel for our company, it will make us a million dollars a year. With our overheads of half a million a year, we are comfortable with that cash flow."
The traditional oil and gas effort is headed up by Briggsy's old mate, Alan Burns, best known in these parts for starting up Hardman Resources. Ever the promoters, Burnsy and Briggsy recently hosted a team from the Sultan of Brunei's national oil company.
"Nothing is finalised, but we are talking about the possibilities of Australian investment and joint ventures," Briggsy said. He is also courting Qatar's overseas petroleum investment arm, with four of their brightest due in Perth next week to look at opportunities.
All in all, Briggsy reckons the WGP share price is at a "very cheap level" (12¢ a share), even if there will be a capital raising "in time". Original investors in the March 2005 float — who paid 25¢ a share — no doubt hope he is right.