WesCan Energy Corp V.WCE

Q1 Results

[bdeparde]

Q1 results out in august. We should see a production increase from work overs I would hope. New wells if drilled should see total production increase over 100 barrels a day (as long as not dusters). Buying a company with market cap of 2.0 million not for faint of heart, but at least we know there is oil and infrastructure in place to move it. Any new wells will add to reserves.

[Theconsortman]

Well they have not licenced any new wells and I see production to the end of June at 68 bopd. Don't get your hopes up. If you look back at their last money raise the insiders took down like 75% so they only raised $25k from outside sources lol.

[bdeparde]

How is heavy insider ownership a bad thing? 

[Theconsortman]

It shows the investor enthusiasm for the stock.

[bdeparde]

Or alignment with share holders. It's never a bad thing when your largest shareholder buys 2.0 million more shares. Wescan will need to drill more wells and increase reserves.

[Theconsortman]

I guess but Management is simply using the money paid to them to buy shares. 28 wells producing an average of 2 bopd? How much work does it take for the Executive to run this? 30 minutes/day?

[bdeparde]

My understanding is there are 19 wells, there is also only one person on payroll and that is Busby and he makes ~$180,000 as per filings. I know techs who make more in a year, and techs don't have to deal with legal and regulatory issues. Time will tell but clearly you want some shares. Your just mad no one called you for PP. Better pay up, only 9000 shares at 0.06 available. Company was on

[Theconsortman]

27 wells producing/suspended 2 injector wells June 2021 56 bopd June 2021   1 670 bbls oil 10 740 bbls water water cut 87% My call 40 BOPD in December.

[bdeparde]

Wescan does not have 27 wells. All wells do have high water cuts that are greater than 90%. That’s the production profile of all wells and has been for more than a decade. This disclosed and detailed in annual Eng. Reserves Report. Facilities are 100% owned that handle all fluids and more. Which is a critical component to what wescan is as an asset. In addition, wescan is well equipped to handle

[Theconsortman]

It looks like you may be right, a few "wells" may be just multiple events. A maunaul count shows 23 wells. Non producing wells just don't magically disappear off the books. Which brings me to a question. What is Wescans LMR? Last MD&A shows 1.69 million in decomission liabilities but no mention of LMR. Working capital deficiency June 30: $1.8 million does this include the $700k

[bdeparde]

LMR  ~1.8 but workovers will bring it above 2.

[Theconsortman]

When is the new oil scheduled to show up? August 2012: 1710 bbls oil 11 240 bbls water 55 BOPD 88% wc

[Theconsortman]

September 2021: 1580 bbls oil 10 600 bbls water 52 BOPD  87% wc

[Theconsortman]

Hey November was 41 BOPD. At this rate I may have been a little optimistic in August saying 40 BOPD in December.  Probably waiting until late in the year to do the workovers...

[freedom-1970]

Any junior this size has 2 options .. go all in a drill a well and hope for a gusher ... Plan B I would work over at least 5 wells back to back. Can't get any lower risk.. This would push the cash flow to around 250 k plus a month .. then I would roll the dice and drill ... 

[Theconsortman]

I agree. Great plan. They raised 200k last year to do just that but production just kept declining with no production bump so they must not have done any workovers.  Now it looks like they have 1.4 million in outstanding payables. Do they pay the payables or do some workovers?? They have no money..Will the people you owe money to in current outstanding payables do more work for you to do