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WestFire Energy Ltd T.WFE



TSX:WFE - Post by User

Comment by konzelmannon Mar 12, 2012 3:59pm
321 Views
Post# 19658930

RE: RE: RE: On my radar

RE: RE: RE: On my radar

Looks about right to me based on current price.  Like I said, if you use a more aggressive number for the price per flowing barrel you could easily end up around $7 instead of $5. 

$80,000 is reasonable, for a good day, when the market is positive, when oil is high, etc.  Could even go a bit higher than that if you're looking at a 'perfect storm' when the market is flying.

Regardless, we're looking at ~40% potential upside, with no risk involved other than the market just recognizing the value of what the company already is. 

But this brings me back to the point that WFE is not being valued on production.  2P reserves are probably holding it back because (although I forget the specific numbers) the NPV doesn't justify a share price any higher than where we're at currently.  If you assume that the reserves will work themselves out over time, there's at least 40% profit sitting on the table right now. 

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