Farm-In GreenTree
I am finally connecting the dots.... Geez this might sound moronic for some but I managed to understand the following.
WEE spent 2.1M studying/testing/experimenting/calibrating South Rodney field. In the last financial, we know that WEE spent pretty much all of the 2.25m.
On a cash basis, the phase of the project is pretty complete.
Now, GGO release statement basically saying how successful the project is.
Only thing left for WEE/GGO is to implement more Powerwave units and scale up the experiment.
2.25-2.1M = 0.15M ok 150K. Now, 1 powerwave cost 5K to manufacture, insall etc. So, we get to 150/5 = 30 units.
Same size as the order by Cernovus.
Now, 2MMstb = 2 Million stock barril
2 millions X 80$ per baril = 160$ Millions of oil ressources in the ground ready to move from inferred oil to real production oill.
Don't know the production rate of South Rodney after implementation but I am pretty much sure that 160M+ divided by 50%= 80M (see farm-in agreement detail)
Well, we have as a backlog 80M$ worht of cash.
I pretty much sure we will get an official announcement soon on this.
SP will soar.
(Read below for proof)
https://www.onthewavefront.com/Files/Press/2006/Greentree%20Agreement%20Closing_02-Feb-06.htm
Under the terms of theDefinitive Agreement Wavefront will provide up to $C 2.25million for capital expenditures related to initial field development.Greentreewill act as the Operator of the lease and will contribute the petroleumleases,existing seismic and geological data, field staff, and the use of itsproductionfacilities. Current development plans are tentatively scheduled tocommence assoon as permits are in place. The approach to exploitation of RodneySouth issimilar to that of Rogers County, OK using horizontal producersstraddled byvertical DeepWaveSMwater injectors. The Rodney South oil field lease has an estimated 3.65MMStb ofoil in place and can be expected to recover 1.33 MMStb if fullydeveloped bystandard waterflooding. It is anticipated that with the implementationofDeepWaveSMduring flooding, in excess of 2 MMStb of oil may be producible.