wcl t/o metrics

Given the WCL announcement yesterday, and the confirmation of the interest of other non-LNG parties, it is probably worth reiterating the metrics put forward by LNG in their origonal "Proposal".

At end Dec Qtr WCL had $16m cash.
At end Dec qtr WCL had 369pj of 3P and 221pj of 2P

On 13 Feb 2012 a proposal of 65c was received for 254m WCL shares.

So Proposal was worth $165m less cash of $16m therefore values assets and reserves at $149m = 40c/ gj of 3P.

THEN on 16 Feb 2012 WCL announce a BIG increase in reserves such that WCL now has 258pj of 2P and 725pj of 3P (thats almost double).

So if we apply the same metric used in the origonal proposal of 40c / gj for 3P, we get:

725pj of 3P x 40c/ gj = $292m + cash of $34m = $326m.
Now WCL has 356m shares = 92c per share.

*** SO even if LNG or Petro make the same offer for our 3P reserves as they did back in FEB, then they should be offering 92c per share. ***

- In addition, in Feb our best well was producing 800,000 scf/day - now we have 2 wells flowing over 1m scf/d with more to come.
- Dec Qtr sales were 397,000gj /d and now June Qtr was 553,000gj/d.
- WCL has drilled more wells since first proposal.
- The outlook for gas prices has improved for suppliers- they were talking about prices in 2015 of $6-$8 /gj - now they are talking of $$8-$10/gj in 2015.
- there appears to be a real shortage of gas supply looming for customers when contracts run-off in 2015
- WCL already has pipeline infrastructure in place to supply up to 60TJ/d
- ** importantly, the strategic importance of WCL, its Meridian field, it's technical expertise, it's proprietary knowledge and its Mgt/Personnel has leapt exponentially given the Petro purchase of MPO assets!! How and who will get that MPO gas out of the ground for Petro/LNG? and what time frame will Petro/LNG need to make that happen???

- and, if someone else wants WCL eg AGL or whoever - what is Petro then going to do with the dirt they just acquired next door? and just paid $41m for? a skate park maybe?

So Petro/LNG - don't bother coming back with 53c!
Don't bother coming back with 65c !!
Start talking about something North of 92c !!!!