WEN Fact Sheet
SUMMARY: Widespread Energy is listed on the NZAX (code WEN) and has been operating as a niche investor in the energy sector since April 2006. The company listed in November 2006 and has 16,933,776 shares and 16,080,276 30 June 2011 10c voting options on issue. Fully diluted capital is 33,014,352 shares.
FINANCIALS: Audited net assets at 31 March 2009 were NZ$964,000 (cash & equivalents NZ$462,000)
MARKET VALUE: NZ$2.0 million - US$1.2 million (ords - NZ9 cents, options NZ3 cents)
OPERATING PHILOSOPHY: Widespread Energy is a venture capital investor in the energy sector. Areas of specific focus include:
- Pre-IPO corporate investment opportunities in the oil and gas sector (both overseas and in New Zealand)
- Direct investment in oil and gas exploration opportunities (both overseas and in New Zealand)
- Investment in listed oil and gas stocks overseas
SHAREHOLDERS: Widespread Portfolios (26.5% fully diluted), Tasman Portfolio (14.4%), Mac Beggs (5.4%), Chris Castle (4.1%)
MANAGEMENT STRUCTURE: Widespread Energy has no staff. The company is operated under contract by major shareholder Widespread Portfolios Limited. Oil and gas sector expertise is sourced from Lower Hutt based Geosphere Limited. The principal of Geosphere is Dr Mac Beggs, a geologist with more than 25 years of professional experience in oil and gas exploration and related applied research.
DIRECTORS: Keith Hindle (chairman), Chris Castle, Jill Hatchwell, Linda Sanders
MAIN ASSETS: PEP 38526 (NZ - Kotuku oil seeps), PEP 50439 -NZ offshore West Coast), 11.8% of Green Gate LImited, 13.3% of Akura Limited - oil and gas on and offshore Fiji, MEP 50270 (under application - Chatham Rise - phosphorite, rare earth minerals, uranium)
KOTUKU OIL SEEPS: PEP 38526, was granted in September 2007 and covers an area of 288 km2 of the Kotuku area north of Lake Brunner on the West Coast of the South Island. The prolific oil seeps at Kotuku, largely within PEP 38526, attest strongly to the particular potential of this permit. The first year's work programme, now completed, comprised mainly reprocessing of existing seismic data. Year two will involve further seismic acquisition and possible drilling.
OFFSHORE WEST COAST: PEP50439over an area of over 3000 km2, off the West Coast of the South Island between Hokitika and Punakaiki was granted in March 2008 and the year one work programme has now been completed. This involved similar activity as was the case for PEP 38526.
GREEN GATE LTD: The company is now focussing its attention towards onshore Taranaki PEP 50110 and is expected to drill within the next 18 months.
AKURA LTD: An initial investment was made in Akura during mid 2006 and it was intended to invest further once the company had been granted three petroleum exploration permits. Subsequent political developments in Fiji have lead to a decision to limit the investment in Akura to the present exposure until the Interim Government has achieved greater international acceptance.
CHATHAM RISE: In mid 2007 a Widespread Energy and Widespread Portfolios JV lodged an application for an offshore prospecting permit, covering an area of 3,048 km2 on the central Chatham Rise. The area encompassed by the permit is located up to 600 km east of Christchurch.
Exploration conducted in the early 1980s indicated the potential for economic concentrations of phosphorite on the Chatham Rise. No historical production has occurred from this region, but rapidly increasing superphosphate prices and advances in underwater remote sensing and mining technology mean exploration for submarine mineral deposits is now significantly more feasible.
Published reports arising from the 1980s exploration indicate that the phosphorite resource is likely to exceed 100 million tonnes and could prove to be an economically viable source of fertiliser. The phosphorite occurs in nodules that also contain a number of other substances, including rare earth minerals, fluorine and uranium.
The Widespread consortium initially plans a two-year work programme which, if successful, will be followed by more detailed exploration and evaluation.
KEY VALUE DRIVERS: Widespread Energy holds, either directly or indirectly, interests in three granted PEPs and three applications. Exploration success in any one of these will significantly re-rate the value of the business.