I agree that 1.8 STX for 1WGO is too rich but 1.2 STX for 1 WGO is not enough . STX assets in the Cooper Basin are of an unknown value but the market is not excited about them . The other permits that STX have on trend in the Perth basin have good potential but of course have to have a lot of exploration dollars spent and exploration is a high risk business as everyone knows .There is no such thing of a 100% COS in drilling an exploration well , nature can be very fickle . The market is adverse to giving a lot of value to potential at the moment .
Maybe a large oil and gas company will come along and snaffle both companies up during this time of maximum uncertainty . The reserves and the exploration potential presently look cheap to me .
WGO Price at posting:
9.5¢ Sentiment: None Disclosure: Held
