WEN Fact Sheet as at 18 August 2010
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 23,987,272 shares and 16,080,276 30 June 2011 10c voting options on issue. Fully diluted capital is 40,067,548 shares.
FINANCIALS: Audited net assets at 31 March 2010 were NZ$1,159,000 (cash & equivalents NZ$607,000). At 31 May, after further capital raising, cash and equivalents were $800,000.
MARKET VALUE: NZ$4.481 million (shares - 16 cents, options 4 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 (22.7% fully diluted), Tasman Portfolio (10%), International Mining & Finance Corporation (5.7%) Mac Beggs (4.5%), Chris Castle (2.7%)
MANAGEMENT STRUCTURE: Widespread Energy has no staff. The company is operated under contract by major shareholder Widespread Portfolios Limited.
DIRECTORS: Keith Hindle (chairman), Chris Castle, Jill Hatchwell, Linda Sanders
MAIN ASSETS: MPL 50270 (Chatham Rise - phosphorite, rare earth minerals), PEP 38526 (NZ - Kotuku oil seeps), 11.8% of Green Gate LImited, 13.3% of Akura Limited - oil and gas on and offshore Fiji,
MPL 50 270 - CHATHAM RISE: on February 2010 the Widespread Energy and Widespread Portfolios JV was granted a prospecting licence covering an area of 4,726 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 and fluorine.
The Widespread consortium is presently fast tracking the two-year work programme which, if successful, will be followed by an application for a mining licence.
The project has been the subject of a recent feasibility study and independent valuation by Rockpoint Corporate Finance. Rocpoint valued the licence at $20.9 million baased on possible future cashflows discounted for uncertainty.
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. As part of the two year work programme a stratiographic bore was drilled in early 2010. While this bore did not reach target depth there were significant oil shows at two levels near surface. Further analysis of these results is being undertaken.
GREEN GATE LTD: The company is now focussing its attention towards onshore Taranaki PEP 50110 and is expected to drill within the next 3 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.
KEY VALUE DRIVERS: Widespread Energy holds, either directly or indirectly, interests in five PEPs. Exploration success in any one of these will significantly re-rate the value of the business.