Ed,
Watco makes great products. Most of it is intended for furniture that sees minimal sunlight and is never immersed in water. If you feel that your paddles won't see enough sunlight to suffer sun damage then go ahead.
Personally, I'll always use both epoxy and UV resistant varnish because I use my paddles for many related activities like fending off threatening rocks, digging for fishing worms and prying the boat out of strainers.
Charlie

: Hi all,

: I have built a Prospector canoe and I am in the process of building a Cape
: Ann kayak. However I am now refinishing some canoe and kayak paddles. I am
: also a frequenter of the Bear Mountain Boat Shop's forum and on that forum
: the subject of epoxy encased trim's unnatural look and the look of oiled
: finishes has been brought up more than once. I would have brought up this
: subject on that forum, but it seems that the bulletin board is down and I
: need some info now.

: I have decided to go for a natural satin oiled finish on a paddle to see if
: the oil can protect adequately. On the BMBS forum, Watco's Danish Oil is
: mentioned and is applied coat upon coat until no more oil can be soaked up
: by the wood. I bought some Watco's and when I read the application
: instructions, the description of the product was for interior use only. I
: thought that perhaps I bought the wrong oil and Watco has an exterior
: product available. I went to Watco's website (flecto.com) to check the
: type of oil used for exterior use. The only Watco oil that seemed to be
: for exterior was Watco's Teak Oil. I know that alot of the regulars on the
: BMBS forum also lurk here and probably have an answer to my question. Do I
: have the right oil?? Thanks in advance for your replies!!