I must be missing something here. WGP has farmed out exploration for both their onshore and offshore exploration, in exchange they are completely free carried. Not only are they 100% free carried, they are going to be paid $2.5 million by Oswal, an Indian Billionaire, who has plenty of money for the on shore exploration. The offshore exploration will be conducted by ROC oil but will take some time as seismic ships are in short supply. The good thing about the drop in the price of energy means drilling rigs are in low demand so that makes negotiations favourable. Oswal built the Burrup fertiliser plant and wants his own independent supply of gas. Vikas Rambal, an associate of Oswal, is building a coal gasification plant in the Collie, where WGP has their tenements.
Some of you complain about the level of remuneration of the directors and hey I agree it seems high but if they can stitch up deals that gets the exploration done up to BFS without having to pay for it then they must be doing something right. Also, the level of remuneration is not any different to any other company.
With Oswal paying for on shore exploration, ROC paying for the off shore exploration and Oswal paying WGP $2.5 million for past expenses, WGP is not going to be going broke any time soon. All up from here.
WGP Price at posting:
2.1¢ Sentiment: LT Buy Disclosure: Held
