dudes, heard a saying that everything counts in large amounts. while many of you are somewhat disalusioned by 5 barrels here and 5 barrels there, when you add it up it can be a nice little money earner. these micro deposits, and improved extraction processes make such micro deposits worthwhile. a 100 barrels a day is some $7,000 a day and some $2m a year. costs are fairly low.
i hope that given the positve results here and experience learned that they get some other leases to get another 100 barrels. I dont want to sound overly optimistic, but it seems that WGP have stumble across a little money earner.
to me, the real value in WGP is the CSG arrangement with ERM. ERM will have done their homework and given the succes of the other CSG explorers, CSG will be found. Once it is proved which is what ERM are doing, and certified, the power plant will go a head. Once certification is done you get 2P reserves which is what the enterprise value is determined. A report has indicated that 2P reserves avalued at some $m per 1Pj of 2p reserves. for ERM to have a generator going it will need a lot of certified gas and WGP will get 25%. i would expect that it would need at least 50 Pj to make a generator worthwhile so WGP will have 12.5Pj @ $2m or valuing the reserves at $25m. Minimal infrastructure is required apart from the conection of the wells to supply the generator.
For a small cap value compnay has a lot of hidden potential just waiitng on news about cashflows from US oil and drilling results from ERM.
please add to this if you have more information and please more than 5 words strung together
WGP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
