WestFire Energy Ltd T.WFE

Stockchase Experts

[dmacd]

Eric Nuttall's from Sprott Asset Management made a mid-October posting on www.stockchase.com

"Assets underappreciated by the market. Have 3 areas in the Viking. Red Water area is worth $8-$10 a share. Very good drilling success recently where wells are coming above tight curve, meaning better recovery than thought. Well costs are down to $1 million and wells will recover 85,000 barrels."

As of Oct 31, WFE was the 9th largest holding (by value) for the Sprott Energy Fund which is managed by Sprott Asset Management. Eric Sprott is a senior advisor for this $142 million fund.

As of Sep 30th, Sprott Resource Corp had a $450 million market cap. Eric Sprott is chairman of the BOD, and they invested $105M in WFE. via the Orion merger.

Eric Sprott must really like WFE to go long twice.

As an aside, it is unfortunate that most of the other experts on stockchase do not understand WFE very well at all. WFE might benefit from educating these so-called experts to at lest improve general market perceptions. At least they will have had a chance to understand the value, rather than just being bitter when they realize that they missed a great opportunity.

Another aside, Sprott has an intriguing company structure.

[eebler]

Nuttall is the guest tonight on BNN MarketCall Tonight so there might be a plug for WFE in the works.  The other one he likes to plug is PPY and with them collapsing their dual class shares and below the pp price, it might get a/the nod over WFE.  If it isn't a top pick, I'm sure someone will at least ask him about WFE tonight so will be interesting to see if it gets a mention

[barneyj44]

Nothing from Nuttbar on Wfe tonight, funny the guy pumps the crap out of it when were trading in the $8,00 range saying it's a $20 stock and doesn't have it as a top pick when we are trading sub $5, can you say Credibility Issue.

[Majormac79]

ahh yes Mr Eric Nuttall the fast talker... He likes to refer to everything as a take over canidate "get wacked" common line ive heard him say. Likes to thrown out numbers and guessed valuations based on thoses numbers. wfe coverage today by eric on past picks https://watch.bnn.ca/#clip577521

[dmacd]

Folks, You ought to get to like Eric if you like Westfire. He is a significant representative of a very large shareholder. I also believe he has the story correct, although Sprott won't be the one to drive up the SP. They are in for the long haul, and expect for others to eventually discover what they already know. I am sure they would like to see the SP higher as well, since it

[barneyj44]

It's not that I don't like Eric, I just find it perplexing  that he had it as a top pick on Bnn a number of times when it was trading between $6.50 and $9.00 , now that were trading  below $5 he should be telling us to back up the truck if he believes so much in the company. Dmacd can you answer me this, why is Painted Pony valued at $12 plus and were below $5 , I think there

[Majormac79]

You have to look at market cap not share price for one thing to see the company's value. I havent looked into it FYI just saying share price isnt what you look at.

[barneyj44]

That's my point why are we valued so low as compared to Painted PonyPPy.a  12.10 a share,   830million market cap   68,654,306 shares outstandingWfe   4.68  a share     315million market cap     67,355,252 shares outstandingWestfire is producing more barrels per day than the pony, just curious as to why we are so undervalued, I'm the first

[dmacd]

Barney, Let me take a very brief look at the two companies, and then you be the judge. - PPY is better promoted, showing a 5 year development plan with $634M CAPEX profile to match up in a hot takeover play called shale gas. - WFE shows their full potential but would benefit from showing a longer term development plan. - PPY increased production from 3080 to 4060 boepd; increased

[barneyj44]

Excellent, thank you for your take on the two companies.

[poubelle1]

Some of your numbers on PPY are incorrect.PPY has no debt.They have around 67 million shares outstanding and they also have over 100 million in the bank.

[dmacd]

The error on the shares outstanding for PPY is a relatively minor comment given the more important aspects of my post, and the other number were taken from the Q3 report. PPY should do well this coming year as they invest the recently raised cash and also likely start to leverage debt. What is your sense on their risks should gas prices or oil prices drop? I don't see their

[poubelle1]

I am expecting a lot from WFE in 2012. The management of this company is highly regarded. I know for certain that Sprott resources thinks this way and are content to just sit back and let these guys execute.Apparently, the board is meeting soon and I am expecting some kind of annoucement for a normal course issuer bid. Buying back stock at current prices is a good use of capital. That