RE: Management Has To Go
You only have the read the simple operational update to see the value that has been added, before spouting nonsense about changing out a highly credible management team. Some things to consider:
- Viking production increased from 1000 to 3300 boepd since January and the team is starting to ramp into the sweet spots while keeping momentum in the 3 core areas
- Innovative farm outs will yield 50% net production to WFE at no cost if I read their update correctly in West Sask area
- production per well ncreased significantly since the early days, indicating a highly skilled technical team that understands the Viking and will probably continue to improve their technology selections in the coming years
- huge development base lends WFE to a takeover or broader based farm out deals
- Orion based technically challenging fields will be critically reviewed as a result of the learnings; looking 12 months out these fields will probably see above average performance
- significant technical de-risking of the formation will allow analysts to increase price targets
- as management gain more momentum from the cash flow increases, they will be able to afford better promotional methods while keeping G&A costs reasonable
- as management continue to improve well economics, they will be able to access more lending capital and will be able to more confidently hedge production so they can more confidently expand their development programs from internal cash flow
Stick around and see this managment team take the company to $15/sh if oil stays above $80/bbl. With oil at $100/bbl the well economics are excellent, and a lot of the risk that managment took when they leveraged into Orion will pay back very nicely if oil can stay at these levels. Suggest you read some of the Viking play research, since there have been some excellent ones if you want to really understand the WFE story.
Q3 cash flow must be good based on high commodity prices ... results should be out soon. Hoping to see a new presentation update as well on the website.