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Looks like Rockhopper is on the move again this morning! Navitas (Their partner) has a meeting on Sunday so next week could be interesting. RKH acreage is right next door to WTE’s interest so hopefully we may see an influence on the WTE price. I did recently top up a further 100,000 shares.

I still feel this is undervalued - My revised targets.....

Short term target 3.8p

Medium term target range 7.6p - 11.4p

Fingers crossed, onwards and upwards!

JPDM FM

Good Morning Folks

Just looking at some of the comments posted both for and against the recent price rise as it were and just wanted to add my thoughts.

I’m not a Lawyer, however, using their yes/no language then some of the questions run as follows:-

Q… Are WTE actually drilling?

A… No

Q… Are WTE funded to drill?

A… No

Q… Are WTE likely to be in a position to drill in the near future?

A… No

I could go, however, on this YES/NO basis then you could argue “why invest” However, lets just draw our attention to WTE/JHI’s next door neighbour namely Rockhopper(RKH). If you were to wind the clock back two years or even just one year and ask the same Lawyer based YES/NO questions above to RKH then you would get the exact same answers to all three questions.

One year later and RKH can only really just answer YES to being funded and even that is subject to Navitas but…… the share price of RKH has however gone from circa 15p last Autumn to 75p this Summer which 5x the price. The share price has not gone up because RKH answers YES to all the above questions BUT because it now looks more likely, very likely in fact that it may or will answer YES to those questions and indeed many other YES/NO questions that I have not listed.

What I am trying to say is that on the face of it there is not much visibly going on with WTE however, in a short period of time things can change. (“Things can change” carries a value). What things could change I hear the cry???, just as examples…. JHI might suddenly decide to float, There could be a fund raise and a partner could come in, Navitas show an interest in the PL001 et al, Outside party buys out JHI/WTE interest etc etc…..

If I use the example of a small cul-de-sac with 3 houses in it. RKH HOME has a major renovation and the property value soars and it also raises the value of neighbouring properties namely BOR HOME and WTE HOME.

I purchased around two weeks ago, I was lucky that most of my purchased were sub 1p with my initial purchase sub 0.5p so I’ve had a good run. I’m happy to share the fact that I’m holding 750,000 shares which is a little over 0.5% of WTE and that lot cost me £5,000! I’m happy to sit on this and for me I see the opportunity for the value to increase especially as hopefully drill preparations next door in RKH’s Sealion proceed. Also, not to forget BOR where there seems to be a growing buzz.

So… Jumping forward lets say 3 years, RKH/Navitas is hopefully pumping volumes of oil out of Sealion, BOR maybe has a partner and tell me…. IF all that is going on will PL001 and JHI/WTE still be perceived to be the same value as today? Q… YES or NO?

The above is just my thoughts, IMHO, DYOR et, I don’t post too often but I do also hold RKH and BOR and will be keeping a close eye on all three.

As always, conveying my very best wishes, regards and good fortune to all

JPDM FM

Hi Buffitt

Not sure if you saw my post with price targets from the 5th August so I've re-posted it below as it ties in very nicely with whats on the just released (dated 6th August) corporate presentation from WTE (Slides 7, 8 & 9).

"Ladies n Gents,

Well, its been an interesting few days. My purchase from last week at sub 0.5p is certainly doing well and, I did subsequently top up further. I still find it hard to fathom that end of last week, for less than £5,000 you could buy enough shares to own 0.5% of the entire company!

I see we have an RNS out which is not surprising given 4 fold+ increase in share price other than you could add to the end of their statement something along the lines of “other than the fact that WTE is undervalued compared to the other players in the Falklands”

To re-cap..

We have RKH valued at circa £500M right next door to PL001 which JHI own and WTE have 6% interest in via JHI. RKH have a partner and are first in line to hopefully drill that gives RKH significant extra value.

We have BOR who hold valuable acreage but no drill programme BUT still valued at almost £90M

We have JHI (Private) sitting on potentially 3B to 10B of oil right next to RKH. Question…. Would you consider that JHI acreage could therefore be valued at a similar level to at least that of BOR? Next door to RKH, shallower water etc etc….

I for one would say that using the most basic of maths and simplification would value the JHI acreage at same level as BOR at least.

So… If we take a valuation of £90M and WTE have 6% of that then we get about 5.4M. That gives a share price just in excess of 3.5p. I really can’t see how WTE can be valued any less than that given the valuations of the other Falkland players. I may be totally wrong but at some stage in the future JHI may decide to float. Where would that value JHI? Where would that subsequently value WTE with 6% of JHI?

I’m sure the RNS speeding fine will trigger some profit taking but even at 2.7p close I regard this as undervalued compared to its Falkland peers. I for one will be holding but each to their own.

I maintain the initial simplistic price targets I mention here a few days ago of:-

3.5p short term

21p Medium term

84p Long term

All the above IMHO and DYOR. The Medium and definitely Long term px targets very much subject to continued success drill programme progress with RKH at least.

Good luck to each and all with you investments

My Best Regards

JPDM FM

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