Wow. Seriously?If we think of this discovery (and only this...

Wow. Seriously?

If we think of this discovery (and only this discovery) then whatever value the market decides is fair is going to make more of an impact to the share price of WGO than it is to STX. I hope to show my point by using a random value that I plucked from the sky as well as some rough calculations. Keep in mind it really doesn't matter what value you use the principal will always remain the same.

Let's say the market puts a value of $500m (random value plucked from the sky) on this discovery then WGO's share price is likely to be IMO around $0.90. I came to this figure based on the market cap of WGO before the positive news flow started last month was approx $60m. If we add $500m for this discovery then we get a total of $560m and then we can divide that by WGO's shares on issue, which is 624m, this gives us a WGO share price of roughly $0.90. This is currently 360% more than what WGO closed at today.

If we do the same exercise for STX then it works out as follows:

Market value of WE-2 discovery = $500m (random value plucked from the sky).
STX's market cap before news flow last month = $100m approx.
Add the value of WE-2 discovery gives us a total of $600m.
Divide by STX's shares of issue = 1.55b.
Gives us an STX share price of roughly $0.39.

This is 160% more than what STX closed at today.

So if you invested $10,000 into each of these companies at today's closing prices and then later sold at the prices shown above you would make $16,000 profit with STX and $36,000 profit with WGO.

Remember this is just worked off random numbers to try and illustrate what the value of this discovery could do to the share price of each company. You also have to consider the market is likely to add some extra value to STX because a good discovery here opens up a greater chance of more discoveries in the Perth Basin in the near future. The market will also add some extra value to STX because of JAWS in the Cooper Basin. I doubt this extra value will be enough to mean that STX's share price will rise more than WGO's in the short term, but I could be wrong.

I definitely see WGO as having more leverage in the short term if things continue to go well with WE-2 and because of this the size of my WGO holding is larger by dollar value. I expect both will do well but have hedged my bets accordingly.

Good luck to all holders, it certainly is exciting times!