WestFire Energy Ltd T.WFE

New Presentation

[dmacd]

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

[poubelle1]

These are VERY difficult times to be an investor. I am sure I am not the only one who feels like a complete idiot for not selling it all last March.I guess one has to either believe that we will some how find a way out of this mess without a complete breakdown or believes in the worst case scenario. AS investors, we must still believe in the former case. In that case, all we can do is

[dmacd]

Thanks for the cheerful post, and for the record I share very similar thoughts at the macro level. Usually this is the best time to plunk cash into the markets since everyone else is dumping and usually they do not know what they are doing, but there is a chance that the crowd knows what it is doing this time. What is so interesting is that commodity prices are so high, yet oil stocks are not