"... ....Messina told us categorically they were getting WTI...

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bitluck

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04/07/21

15:37

Post #: 54269128
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Originally posted by alexei ii: ↑

This is the as at 31 Dec 2020 state of the company. The P&L and balance sheet do not take into account the events in Jan2021-Jun 2021 incl the events of May 2021.

I did the calcs on the stated production figures for the Dec 2020 half and it came out (if the accounts are to be believed) roughly that they got around AUD $20/bbl for the oil?? and AUD$1.50 for the gas - Messina told us categorically they were getting WTI plus for the oil. You can check that for Jun-Dec 2020 WTI was over USD$35 bbl i.e. AUD $50 plus - so something does not gel here. (see below graph for pricing).

Interesting how the Wiz Lake valuation as at Dec 2020 was $3M on the basis of WTI @30 USD and gas at $1.70 Mcf (notwithstanding my above comments). On the back of that, they took a $10Million impairment on the Wiz Lake asset. These figures now are USD $70 and USD $3.50 - I dont have a DCF model on this, but Ill bet my bottom dollar using USD $70 (oil) and USD $3.50 (gas) the valuation will exceed AUD$10M, maybe even AUD$20M. The other thing they did was not attribute any valuation to PUD wells (Rex4, Rex5 and Rex6) - presumably to ensure the low ball valuation to buy out the asset. I will be interested to see if they keep this up in the next lot of accounts, or when they come looking to shareholders for more money.

Its good they did the workovers on all the wells, but no info on what they are producing now at Wiz Lake...that's a bit piss poor (pardon the pun).

Having said all of that, I still have a gut feel there is a significant asset here at Wiz Lake - I just wonder whether ALL shareholders will get to benefit from it.

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"... ....Messina told us categorically they were getting WTI plus for the oil..."

it seems Messina laughed at you. Alberta produces heavy oil and WBE's oil needs to be trucked to market, who in their right mind would pay WTI for a heavy crude? and on top of that pay for transport!!! ...

Regardless the fact that we get discounted Canadian prices, WBE still gets a good price way above production costs, we may not need a capital raising if oil prices hold above US$70 for a while, with balance sheet clean this may open at 1c pumped by underwriter who wants to exit. Let's see.

WBE Price at posting: 0.4¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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