news from shareholder update - good news

The s/h update today addressed a couple of new issues.

One of those issues was the impact of Arrow's announcement regarding the potential on increase in reserves from the Rangal and Moranbah and Fort Cooper Coal Measures.

ATP688 (includes Tilbrook blocks and Pilot) adjoins the Arrow permit, and the presentation confirms that the above coal measures extend into Tilbrook. The presentation confirms that ATP688 has 2950PJ GIP in the Moranbah and Rangal measures - but this figure DOES NOT attribute any resources to the Fort Cooper measures within ATP688.

From my earlier posts re Origin purchase of Pangaea CSM, I detailed some of the factors which led Origin to pay $660m for a permit which had not yet proven any reserves. Among those factors were:
- proximity to infrastructure
- proximity to proven 3rd party reserves
- synergy with existing discoveries.
Paranui is just 7klm from existing compression facilities and only 3klms for pipeline.
Tilbrook is adjacent or close to 2 gas pipelines and existing power infrastructure.
Its permits adjoin either one or both of BG or Arrows permits.
WCL state that the coals in ATP688 are analogous with those in Moranbah.
Its gas is uncontracted- can be used for either LNG or domestic.
RESERVES:
confirms again that resrves certification should be by June 2009 - just couple of months away.
WCL expect (assume 3P) reserves cert in Tilbrook of 80pj and Paranui of 72pj total of 152PJ WCL shares.
WCL share of costs to get to 152PJ is $9m
They have $27m cash on hand, so after spend of $9m that leaves them with $18m cash - thats 16c / share cash.
If they reach 152pj of 3P at 40c / gj - thats $61m or another 55c per share.
So at June 09 WCL could easily value at 71c (55c + 16c) without taking into account the other GIP of 2,500pj approx in northern Tilbrook.
If WCL can prove up just 50% of the 3000pj - thats 1500pj @ 50% at 40c per gj = $300m or $2.72 per share.
SO, with a little time, WCL is looking promising.
cheers