Have just cottoned on to WEL. This has been seriously overlooked. Only problem is no liquidity but that will come.
They have 475bopd at present rates and that is WITHOUT the last two wells announced that shoudl do at least 100bopd each! They had $475k of revenue last quarter and that is set to increase markedly in the current quarter.
So if there 'sweet spot' is 5000 acres:
5000 acres divided by 40 acres (a drilling unit) = 125 drill holes
125 x 100bopd (conservative) = 12,500bopd x $45 a barrel oil = $562,500 per day!
Most of this will be at 75% in the JV as per the new arrangement on 1 march 2017 so:
$562,500 less the royalty (23.5%) = $430,312.50 x 75% = $322,734 per day net to WEL!! This is without any upside on the radial fracking, high production wells. Also each well will only cost $500kUSD!
This is a screaming buy with one year of production equating to 55c per share
WEL Price at posting:
6.8¢ Sentiment: Buy Disclosure: Held
