New Presentation
I will pick out a few things that caught my interest:
YE2010:
- $574 million in tax pools
- 9.3 yr reserves life index
Q3:
- 8460 boepd (65% oil) current production, with a nice CAGR curve
- $88 million debt drawn vs $200 million bank line
- $27 million funds flow (
.32/sh) for an annualized $108 million ($1.28/sh)
- NAV of $8.70/sh based on GLJ March 31
Future Projections:
- 52,000 boepd risked (72,000 boepd un-risked) potential production for Viking lands (0.69 factor)
- Redwater 'sweet spot' has best economics with 2,400 boepd producing and 15,000 boepd potential (risked)
- Provost has next best economics with 300 boepd producing and 5,000 boepd potential (risked)
- Plato, Dodsland and other lands contribute the other 32,000 boepd potential (risked)
Board of Directors
- Ed Chwyl, John Brussa and Ray Chan are both on Baytex BOD
- Cadent and Sprott are two large and stable investors and will help increase promotional activities when the timing is right from their perspectives
- Christopher Fong brings a strong institutional pull
Other thoughts
- WFE has come a long way from the risky early days when I first invested yet the SP is sitting right near my entry point ... that makes no sense at all
- Viking consolidation might be of interest. If WFE can establish itself as a best-in-class operator then we might see some merger interests from large investors from some of the other players
- Baytex has a minor interest in Viking lands and could be a future suitor
- WFE should trade 15% above NAV based on growth and risk profile, instead we tradie at a 42% discount. The fund managers and institutions will understand the value eventually
- WFE should be trading at $10/sh in my 'humble' opinion based on NPV and growth prospects, and the current SP offers compelling VALUE for those with cash and time