TSX:WFE - Post Discussion
Post by
carlson8 on Jul 04, 2011 8:30am
more Nuttall (sprott) view of WFE
EN: My third-largest holding is
WestFire Energy Ltd. (TSX:WFE), which is almost a pure play on an emerging tight, light oil play called the
Viking Formation in Canada. The company has spent several years aggregating acreage in this play, and I believe it has about 800 risked locations. If one believes in $100/bbl oil, then that works out to about $25 of risked value per share—and the stock is trading at $6.85 now and at 3.9x 2011 cash flow. It's very, very cheap on current production. WFE's balance sheet is healthy, and I think production will grow by more than 20% in 2012 over 2011. I like the management; the team members have a lot of their own skin in the game, so they're highly motivated to sell the company when the right time comes.
TER: WestFire was your largest holding at the end of May, was it not?
EN: It would've been a few months ago. I haven't sold any shares. It's been weak relative to a couple of other names.
https://www.theenergyreport.com/pub/na/10098
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