OTCPK:WSRLF - Post by User
Comment by
CalifDreamingon Nov 10, 2008 7:48pm
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RE: Comparison WZR to VNX
RE: Comparison WZR to VNXVNX isn't comparable - they had proven discoveries on their concessions, so risk was far less - however, their fiscal terms were terrible as a result - they net ~5% while paying 50% of the costs - the rest goes to Libya. Nor is VNX targeting billion barrel fields, so the scale is less.
FCP mainly found gas and the cost to develop was staggering. WZR is targeting oil and capex should be relatively modest in comparison of the potential billion barrel fields.
Right now WZR is trading well below cash value, so no success is priced in (failure is priced in at current prices). Of course a dry hole won't be fun and we'll see inevitable selling regardless of how much cash is in the bank...