wgp - summary - $6m mc, $7.5m jv with awe, etc

Thought I'd put together a bit of a summary for the people asking for it and that are trying to make a decision on whether to buy into WGP:


So AWE are willing to pay $7.5M for 90% of one of WGPs permits (EP455 - see Nazzys post on ""jv with awe"" thread for very good pictures of Perth onshore permits and shales), meaning that 100% of that permit would have a value of $8,25M, according to AWE (but we all know that AWE knew what this basin contains and got in early and at a discount).

WPGs has another 100% owned permit (DR11) not far and not much different from the one that AWE farmed into per above. So we can conservatively assume that DR11 is worth the same as EP455, even though AWE announcement yesterday would indicate that both of these permits are now much more valuable?

Anyway if we add up the very conservative value of DR11 ($8.25M) and 10% of EP455 ($750k), we get $9M.

Current MC of WGP is $6M.

So WGPs interest in ONLY 2 of its permits has a very conservative value of $9M, and even that is equal to 50% more than WPGs current MC. (undervalued much???)

Add to that the Offshore Perth Basin permits.

Add to that the 5 oil/shale gas prospective Kentucky USA permits that cover nearly 2,500 acres.

And let's not forget the appointment of Mr Chong Kwee Ch'ng who has very deep pockets himself let alone contacts that he would have. He's not on board for his geo expertise let me tell you that.

Then there is the Deutsche Borse Listing.

In regards to the cash, as I have posted earlier:
"With about $250-300k of cash left plus another $200k from the loan facility, that should keep the cash ticking for another 4-5 months until funding is arranged at hopefully a price of a few multiples of today's close."

Good luck and DYOR.

Cheers.