more to wgp than oil in kentuckey

Dudes, just back from holidays and have been reading all the posts, particularily from the new WGP lovers.

I got into WGP when the infamous Krisberry ramped it on the MPO thread only to see that ERM had signed a CSG deal with WGP. I am into the CSG sector, and after some research saw the ERM CSG free carry deal plus $3m cash back as a real asset not reflected in WGP price.

To put you into perspective csg is worthless unless it is 2P certified. Thats what ERM are doing. I would expect that ERM will want some 100-200Pj of 2P reserves to make it worth while to develop and enter into supply contracts. WGP has 25%. At 100Pj, WGP has 25Pj or any asset of $50m based on a valuation of some $2m per 1Pj of 2P (Foxdavies report) for a company with a cap value of $9m, worth the risk.

Then I did some more research and found out about the mirco reserves, there 1 to 10 barrel a day wells. given the price of oil, the minimal costs of extracting and drilling, 1 barrel a day is some $25K at $80 a barrel. 100 barrels is $2.5m.

What a bonus, positve cash flow while we wait for the CSG deal. Then comes the ROC deal, again a free carry.

and now the micro reserves may have turned into something a lot bigger, even 400 barrels after these $12,000 wells are drilled will give WGP a profit of some $10m.

So WGP's potential is now being noticed.

I would have thought that if the recent spike was manufactured, it will have pettered out. however, it would seem that some here who have friends in the the US may have gone to Kentucky to see the river of oil for themselves, and has maintained the momentum in the share price.

Even at the current share price, there is a lot of room to move up on this oil find and the CSG deal, let only the ENB and ROC jv.

Patience and a lot of luck (not seeling out to early or holding for to long)

DYOR