As I've been plugging WTE a bit of late I feel obliged to give the good and the bad news of my recent research all imho dyor.
The bad news is that WTE directors awarded themselves 5% of the profit from the sale of Fusion shares and calculated it at the value of Sterling shares at the time they exchanged their Fusion shares for them. They used that cash to pay for their 625,000 option shares at 33.5p/share and the rest, they were stated in the latest final results, at the mid price on 29th December 2003(Potentially around 3 to 4 hundred thousand shares)
Now the good news. This could explain the relative lack of reaction to the Talisman discovery near Buchan in November and the Tiof discovery and successful appraisal of late. As WTE now effectively have a near 0.6% share of the Tiof discovery which is said to be 300-400 million barrels potential recoverable barrels of oil. If it's connected it's likely to be at least this big imho. If it's not connected it's likely to be 2 fields over 50 million barrels with each field bringing a one off payment to Sterling(WTE 10% approx)
Sterling's share price could now be underpinned by the Tiof discovery + potential drilling by Premier in Guinea and Gabon in which they will have a carried share. Success would be another positive. There is then likely to be more explo and appraisal offshore Mauritania. It's not impossible offshore Mauritania could be accelerated.
These guys are playing a canny game and making sure they are rewarded but I'm not sure the market has priced in their recent successes and this could provide an oportunity.
Westmount Engy stock quotes
Westmount Engy stock charts
Follow this thread
