WON Looks like a good trade to me. I bought some today at 1.2/1.3. Would have bought more and kept chasing the sellers if I had the cash. Will hold till drilling.
Prospect size 20 million barrels. WON have 20% Good partners- apache, tap and strike. Good neighbourhood. shallow water, shallow hole.
WON market cap only $2.5m so plenty of upside after months in the doldrums.
acturtle
West Oil announces that it has reached agreement with Apache Energy to acquire a 22.5% interest in EP-341 on the Peedamullah Shelf in the inner Barrow Sub-basin, offshore Carnarvon Basin, Western Australia.
The Crackling South Prospect will be drilled in early 2003. The Crackling South Prospect has potential for estimated recoverable reserves if hydrocarbons are discovered and if the structure is full to spill point of 20 million barrels. It is located in 12 metres water depth and the prognosed depth to the main objective sands is 400 metres. The well will be drilled to a total depth of 500 metres with the main objective being the Birdrong Sandstone with good porosity and permeability. There are many other similar prospects in the permit if Crackling South-1 is successful (see map).
Apache has the option to acquire an 11.25% interest in the permit from West Oil for a period of 90 days from the time that Apache is in receipt of the results of the Crackling South-1 well.
In consideration for the 11.25% interest Apache shall fund West Oil's share (11.25%) of the appraisal and feasibility costs up to a capped amount of $2.5 million.
ENTITLEMENTS ISSUE
As a result of the agreement with Apache the Directors of West Oil have requested the Underwriter, and the Underwriter has agreed, to allow shareholders the opportunity to apply for shares on the Shortfall Application Form attached to the Prospectus until 10 th December 2002.
The agreement with Apache is subject to the parties executing a Sale and Purchase Agreement, the agreement of the Designated Authority and Tap Oil agreeing to not exercising its rights of first refusal over the interest in respect of the assignment to West Oil and the re-assignment to Apache should Apache exercise its option.
Interest holders in EP-341 are as follows:
COMPANY INTEREST INTEREST INTEREST POST PRE-SALE POST-SALE APACHE OPTION West Oil 0% 22.5% 11.25% Apache 45% 22.5% 33.75% Tap Oil (Operator) 50% 50% 50% Strike Oil 5% 5% 5%
For further information please contact Charles Morgan, Managing Director Ph: 08-9226 2070 or email: [email protected]
A copy of the full announcement, including Maps, is available in PDF format on www.asx.com.au. Alternatively it is available for purchase from ASX Customer Service on 1 300 300 279.