WGO 0.00% 35.5¢ warrego energy limited

STX + WGO = ENORMOUS, page-34

  1. 2,806 Posts.
    lightbulb Created with Sketch. 644
    WGO has around $6 million cash.

    Cash on 31 December 9,111k
    Expected cash outflow for March quarter 2,955k

    Even if they manage to spend only $1 million during the June quarter, this will leave $5 million to be spent for the second half. Clearly not enough for the well and other expenses.

    May be they shouldn't have spent any money on the Spanish junk. Now they are planning to drill new wells there as well.

    Potential solutions:
    Pay the drilling company in shares
    Issue shares to investors
    Farm out
    Pre sell gas
    Borrow money
    Delay the drilling till market conditions improve

 
watchlist Created with Sketch. Add WGO (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.