From the archives (note - KB I had to trawl through over 30...

From the archives (note - KB I had to trawl through over 30 pages of your work to find this!):

Subject: re: will we be paying 30 cents for wgp next week
Stock Code: WGP - WESTRALIAN GAS AND POWER LIMITED
Posted: 07/04/07 11:49 Hotcopper Radio: WGP on BoardRoom Radio
Posted By: trade4profit Views: 236
Post #: 1686786 (In Reply to msg #1686374 from Neil_WA) Sentiment: Buy
IP: 144.131.xxx.xxx Voluntary Disclosure: No Stock Held
Neil_WA...

I am being pursued by Andrewe for posting my "irresponsible" near-term predictions of 30-60c assuming three successful wells here, with sustainable production of just 50-100bbls/day.

Now you are coming up with $2+.

lol...lest see if Andrewe decides to hunt you down now as well?

Anyway...lets not forget the company was valued at just 7c per share based on their other assets, pretty much without Kentucky!

So, at thursdays close, these Kentucky assets, including this well, are valued by the market at just 12c above the previous share price (19c all up)...or $12m fully diluted.

At AUD$60 per barrel, net of costs and royalties and assuming a PE of just 8...they will need daily production of just 68 barrels from the entire permit to support this valuation on a PE basis.

The company has previously stated current producing wells and workovers were aimed to increase existing production to 65bbl/day...effectively supporting the current $12m valuation recently placed on this asset by the market.

So arguably, the current well, whilst obviously responsible for attracting market attention, has not yet even been factotred into the equation.

So...assuming just 50bbls/d from this and two more wells, we gat an additional 150mbbls/d added to the previously mentioned 65bbls/d...for a total potential production close to 215bbls/d.

At AUD$60 net we get profits of some $4.7m per year from these Kentucky assets...and without further success from additional near-term drilling.

A PE of 8 (conservative for a growth enegy stock), gives us a value on just these Kentucky assets of some 37.5c per share fully diluted.

Add in the rest of the company, cash from conversion of options, etc...and we can add at least another 15c per share, giving us a very fair 52.5c per share of potential value here!

As for your $2-3 projections...if we do in fact get sustainably high flow rates from this and subsequent sister wells, then these prices are indeed very much achievable.

Cheers!

My posts are for discussion purposes only; in no way are they intended to be used for, nor should they be viewed as financial, legal, medical, fishing or cooking advice in any way. Good stocks fall, bad stocks rise, irrespective of my views on TA or FA. If the opportunity presents I will typically "trade" the swings on any stock "for profit".