I’m looking forward to the announcement regarding the CR.
Very interesting as to the how, how much and the price.
I think WBE may be low on money.
Whilst they had nearly $3M at the end of June that could mostly be spent now on paying for Rex2 , $2.2M and now the gas pipeline has to happen ($.5M) plus the first modular upgrade to the facilities.
I’m thinking that we are currently producing at 500 bopd which at $30 profit should be bringing in $15,000 per day.
That’s nearly half a million dollars per month.
It will take us past Christmas to get the $2.2M reimbursement for the cost of drilling Rex2.
That doesn’t work.
We need $3M now to upgrade the facilities, build gas pipeline and drill Rex3 ASAP.
Rex3 ASAP is very important as we have to complete Rex3 to become the owners of 50% of Wizard Lake oil field.
I would like to think that once the upgrade to facilities is complete we maybe producing at 700 bopd. 700 bopd at $30. Is $21,000 per day and close to $600,000 per month.
My understanding is the rig can be ordered in six weeks and Rex 2 only took 2 weeks from start of drilling to start of production testing.
If the planning for Rex 3 is complete we could have Rex3 producing by the beginning of December.
The upgraded facilities will be ready and waiting so that by Christmas we will be producing over 1,000 bopd. $30,000 bopd and $1,000,0000 per month.
I have ignored gas sales in all calculations and have only considered the oil content of the production. Maybe another $500,000 per annum from gas sales if prices improve this northern winter.
Handled well the CR will be seen as a positive event and part and parcel of turning WBE in to a proper oil producing company.
Rex4 would be financed from oil proceeds within a month of Rex 3 starting production. Six weeks to order rig, two weeks drilling and producing by mid February. 1,500 bopd.
Even without buying the other half of Wizard Lake, WBE should be making $500,000 per month by Christmas , $6M per year with increasing production in the pipeline.
We should be worth more than 1 cent a share by Christmas if things continue as we have seen with Rex 2.
I suspect Rex 3 and Rex4 will be on each side of Rex 2 so as to produce from that same sweet spot.
Life’s Good.
Saltbus
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