WesCan Energy Corp V.WCE

Low cost even with the workovers. More production coming

[Dragoon]

The production cost is only high right now because of the workovers. With the new accounting rules the costs have to be taken in the profit and loss statement at the moment of billing. It no longer goes into depreciation over the production period of the well.
This is why Q3 is such high costs. 
Even with 50K more workover costs compared to the 9 months of 2019 (April - Dec) the costs are still 17% lower in 2020. Because of the workovers the production BOE is low as these wells didn't produce. 
Look at the last 9 months in the MD&A page 3 and even with the many workovers included the production cost is still below 40 per BOE - this while production is lower with the workovers!

When workovers are done more barrels will be produced. Even with higher royalties there should be less workovers. Also the March 1 press release with 200K offering will only partly be used for workovers, its in the press release. So fiscal year 2021 should be big production!

So a 40 dollars per BOE I see possible - also in line with the last years taking into account royalty.

[Roddiggiti]

With WTI at $66 today, Wescan is making good money. Once the workovers are all completed, the company should be netting a profit of at lesat $50K per month. Bigger upside on the drilling potential. Their reserves are close to 500,000 barrels, mostly light oil. Stock should be trading at 12-15 cents right now. From their last 51-101, 21 wells(some are being worked over and aren't producing

[bdeparde]

They are medium grade oil, basically if the wti price is $66.33 usd they are getting around that price but in $Cad dollars from what I have noticed.