WGO warrego energy limited

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  1. 1,836 Posts.
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    Hi Brobel,

    I'm much less optimistic re a potential t/o offer and the possible valuation of WGO...

    Main point is, that WGO still must prove the reserves of gas which is already be sold to Alcoa. Even Phase 2 drilling will probably not add much additional gas for sale to market. And it is in the hands of STX as the operator of EP469 when they will drill additional exploration wells in the northern part of the license. If Strike is successful with the upcoming (up to two) South Erregulla wells, they might focus their work program on the 100% owned licenses to foster their Haber project...

    => A potential bidder won't get much gas reserves under their own control and will face some uncertainties re future operational activities.
    A bidder would basically buy future revenues from the Alcoa long-term GSA, which strongly limits the valuation (and a potential t/o offer per share).

    The Spanish assets are of very low value and won't add something reasonable to the valuation and any drilling of the almost unexplored Southern Carnarvon Basin is years away and of course coupled with high uncertainty for the current company valuation.

    I think, only if someone make a bid for both companies, WGO and STX, attractive valuations for WGO are possible...


 
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