NWE is trying to put the most positive spin on the Xanadu 3D seismic by suggesting that there is potential in the west of the tenement - with soem unqualified assumptions.
This is hardly surprising but should not be taken too seriously either.
The company has some other assets of interest - specifically the acreage to the north of West Euragella.
Sadly, they do not have the time or money to drill it.
Also, the published info from WGO and STX suggests that the relevant sections narrow to the north and thicken to the south.
I believe that they will need to raise more money from shareholders to stay in the game.
Given the share price, I wonder if it will be done at 0.2c or 0.3c?
Which ever way the ball bounces, there is going to be a heap of dilution.
Yes, Rufus, they could sell an asset or sell down their interests - but that too gives away the upside potential at an awfully low valuation.
Overall the BOD is caught between a rock and a hard place.
Would someone else bid for them?
Maybe......but it is hardly a reason to stick around.
I bailed at 0.4c which was an expensive exercise but happy to be able to move on.
Good luck, DDD
NWE Price at posting:
0.5¢ Sentiment: Sell Disclosure: Not Held
