No doubt jocam will do this proud in his small oilers post this week but I have to make a few comments.
I see this company as one of the great opportunities to get wealthy in the market today.
First and formost, because it's position in the Perth Basin has been one which the market is supporting. Whereas offshore assets may be considered as potentially under threat, Perth Basin assets are safe.
Then, NWE is already undervalued.It already owns about 15 cents per share of the proven oil in the Cliff Head structure. This is the first well in the drilling program to commence on 2 Jan 03 and is a low risk play to further prove up the structure. The Cliff Head area is worth 30 cents per share to NWE.
The second firm well in the drilling program is Twin Lions in shallow water just on the coast near Perth. This is 360 mbl structure in a safe area easily brought into production. Success here is worth over $2.00 per share to NWE.
The third firm well is Mentelle just north of the other wells in the Perth Basin. Again a promising smaller structure easily brought into production and worth 15 cents per share to NWE.
Then there are four more equally interesting wells in the Perth Basin which are contingent on the knowledge gained in the drilling of the first three.And hardly mentioned, NWE have a 10 % free carried position through a work program on the Puffin field later this year.
The company has just completed a capital raising and has funding in place for all this work.
There are fewer than 150m shares on issue with excellent gearing to success. I think the shares will be over 10 cents on Monday but I can't see a company with more potential than this on the ASX. ( if you can please return the favour. )
I can not comment on the Seismic work on these prospects and I leave this to my fellow Oilers. My personal feeling is that all the company's involved are making the best use of their funds and knowledge.
As usual, please dyor. I have a position and I'm not selling.
Regards M.
NWE Price at posting:
0.0¢ Sentiment: None Disclosure: Held
