WGO (ASX) Way ahead

Originally posted by barneyw ↑

Hi all

Thought I might change the topic somewhat and look ahead at outcomes.

Setting aside the obvious if we don't strike oil and based on the following assumptions:

Cash at hand $5m

We have a commercial find - depths and flows can be speculated on

The initial SP stabilises at say a conservative 0.25. and....

We need future financing which seems to be a thread within the '50 Bagger' thread speculating whether we get farmin, taken out, external finance, CR, JV etc etc

I was wondering that given the above - the options would be in the money and I would expect that all rights would be taken and would this not provide the company, by my calculation, an additional $10.5m cash with some dilution.

My preference would be for the company to get external financing say a credit line of $50m (or more) given there is a viable, tangible asset and that current management takes this project on and sees it through to the end. After all I'm sure that Casey and cohort can't have too many projects left in them seeing that they have been around the block a few times.......aaaannnd there won't be too many more projects floating around like this

Schuepbach Energy International LLC (SEI) also has the ability to raise funds as well.

Just as an aside the Uruguayan Peso is at at the same exchange rate/ratio as the AUS/USD so how that factors in to the cost of doing business, wages etc etc should also be considered and taken into account.t

I would be interested to hear others thoughts on which way is the most cost effective long term outlook.

I know there will be some that will want the quick profit and move on but I would like to see, for those who took the real risk and stuck with the company in the long term, maximise their return.

Cheers
BW

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Well I don't know much about oil explorers, but it would be a tough ask to get 50 mill line of credit out of a bank even if they struck 2 wells.
Can anyone see management going for further heavy dilution ? They are prob aiming to get bought out after firming up a gob smacking amount of oil and gas with still a good deal of further potential there for the buyer. I would guess a major would want the lot, rather than our share so it will depend on our partners point of view as to the timing and amounts. Surely just about anyone (at this stage) has deeper pockets than PRL (that 10.5 mill will be vital though) and our partners would be content to go forward until some REALLY juicy numbers are thrown about.
Let us dream of a buyout at $1, shall we?

Not being familiar with oil industry can we have an equivalent of a 2% smelter fee if we sell out? Be nice to have that cover to save sellers remorse if it goes EXTRA large after we are bought out.