AWE on the Move

**upside_umop** · 10-11-2010, 10:31 PM

Originally Posted by COLIN

Yes, looks like a breather alright.
A spectacular performance by WGP today, a company not known to me but obviously requiring some study in view of the spotlight on WA shale gas.

I was following them for a while, but waiting for something to happen with Shale in WA, as that is all they really have going on.

WGP have 10% free carried from AWE on a permit that intersects AWE's prospective permit and the bed of shale. They settled a little too cheap I believe, but their other permit which is surrounded by AWE is 100% owned. There is a lot of potential there...

This is still for a market cap of around $6m. I wouldn't load up too heavy however, as a rights issue is surely to come with only around a quarters worth of cash remaining ($300k burn rate). I also wouldn't be surprised to see it fall back somewhat, as there may not be a 'constant' stream of news from now.

I'll set up a thread tomorrow, if someone hasn't done it before and explain it a little better. Like I said, I only have a small amount, although they are worth 100% more than yesterday.

**COLIN** · 10-11-2010, 11:03 PM

Originally Posted by upside_umop

I was following them for a while, but waiting for something to happen with Shale in WA, as that is all they really have going on.

WGP have 10% free carried from AWE on a permit that intersects AWE's prospective permit and the bed of shale. They settled a little too cheap I believe, but their other permit which is surrounded by AWE is 100% owned. There is a lot of potential there...

This is still for a market cap of around $6m. I wouldn't load up too heavy however, as a rights issue is surely to come with only around a quarters worth of cash remaining ($300k burn rate). I also wouldn't be surprised to see it fall back somewhat, as there may not be a 'constant' stream of news from now.

I'll set up a thread tomorrow, if someone hasn't done it before and explain it a little better. Like I said, I only have a small amount, although they are worth 100% more than yesterday.

Thanks for that, UU, and I look forward to your further comments.

**Oiler** · 12-11-2010, 06:34 PM

Originally Posted by upside_umop

Wow, what an amazing finish!

Ended up getting a few NWE and WGP together - half half split.

I might try and free some funds up for this larger cap too...theres just something I've always liked about them.

Well done Oiler for accumulating down low!

UU you may recall a couple of months ago I was "chastised" for buying on on a falling market ($1.50s)

I dont know how TA could have told us to buy on Tuesday when AWE took off again.

Picked up a few WGP today and will do some more reading up this weekend

**upside_umop** · 12-11-2010, 06:39 PM

Originally Posted by Oiler

UU you may recall a couple of months ago I was "chastised" for buying on on a falling market ($1.50s)

I dont know how TA could have told us to buy on Tuesday when AWE took off again.

Picked up a few WGP today and will do some more reading up this weekend

Oiler, I do remember! $1.50 was bargain, and of course it's very easy to say this in hindsight, but it absolutely was for a stock this diversified and potential grunt. The amount of shale permits AWE have give this amazing leverage for the size of the stock for basically free, given the Net Tangible Assets in the financials are still above market capitilisation (don't bring me down too much on this KW...watched the video's and thought they were great!).

I look forward to hearing what you think about WGP. I'm looking at getting some options, even though they are still well out of the money. They do provide a lot of leverage with the shale program coming up in early 2011 but have the downside risk of management falling short on a favourable capital raising/farmout of DR11.

Corporate · 01-06-2011, 08:29 PM

Anyone still holding/watching AWE?

**Skol** · 01-06-2011, 09:30 PM

I have. Technically, looking quite promising, but below where I bought them. The NZ hole was a duster.

**troyvdh** · 29-06-2011, 07:52 PM

...again I dont get it ...this outfit supposedly has no debt...$75M cash in the bank...and 70 M barrels yet to suck up....and yet the SP heads south....I really hate being so naive....again...

..it would be appreciated if folk were beter informed ..to say so...

**macduffy** · 29-06-2011, 09:00 PM

AWE aren't the only unloved energy stock at present.

Maybe the market expects the PoO to continue to weaken or maybe it's just the current general market malaise?