this will help explain part of the reasons just why AK and NM sold out of WCL. AK sold some shares a while back, for personal financial reasons - and this latest sale is probably related to that. The fact that AK sold for 32c and NM sold for 35c, is most probably related to timing and deal issues. I have not put much store in that pricing.
But good points re why did NM and the Skermans sold at 35c?Ages ago I researched Resource Land Mgt. They are/were providers of consulting type services to O&G coys, particularly in Qld. I think that these three s/h know each other for years. So if NM and AK sell, then Skerman might follow their path?
I reckon the reasons behind the sale of these shares: 1. selling now at 35c is cold hard cash NOW 2. in my view, the WCL Board is run by NHC and EIT (ie AK and NM now had little influence anymore). So there would be no point in accepting the risks of being a director, when you have little or no influence on the decision making process, 3. both AK and NM are no longer on the WCL Board, and so now only get info we get 4 AK founded the coy, so his attachment is severed 5. AK and NM have moved on. Read the article below. 6. I reckon the main reason for the sale of their shares is to inject those funds into this business of Sub161.
I will bet you London to a Brick, that the plan for Sub161 is to build it up, and then float it on the ASX !!!
Solomon saves on diesel with gas deal The West Australian
Fortescue Metals Group is pushing forward with plans to convert its Solomon power station from diesel to gas, cutting a deal with unlisted gas supplier Sub 161 to truck compressed natural gas to the mine.
The deal means Fortescue can replace the estimated 300,000 litres of diesel used each day by its 125 megawatt power station with 11 terajoules of gas trucked from Port Hedland.
It is the first major gas deal for Queensland-based Sub 161, which has plans to build several gas facilities in the Pilbara and service other miners in the region that are reliant on diesel and risk being caught out by rising energy costs as the Australian dollar weakens.
Sub 161 chief executive Angus Karoll said the company believed it could save Pilbara miners as much as 30 per cent on their energy bills. The company is also drafting plans to expand into the Goldfields under a similar model - building a compressed natural gas facility along the Goldfields gas pipeline and trucking gas to gold miners.
The Sub 161 agreement is an interim deal for Fortescue until its 270km Fortescue River gas pipeline is completed early next year. But Mr Karroll said Sub 161 had the option to continue to take gas from the pipeline to supply other mines.
He would not comment on the value of the Fortescue contract, but said the deal would form the basis of its investment of tens of millions of dollars worth of Pilbara infrastructure.
Wholesale gas contracts are estimated to sit in the $6 to $8 a gigajoule range, though the contract price to Fortescue would likely be significantly higher given Sub 161's infrastructure and transport costs.
Sub 161's major backer is Queensland resources heavyweight Nathan Mitchell.
Fortescue shares closed down 11¢ yesterday to $5.24.
WCL Price at posting:
32.5¢ Sentiment: ST Buy Disclosure: Held
