WesCan Energy Corp V.WCE

Why is this moving so fast?

[Stockwatcher101]

What's the story here? Lots of volume over the last few days. Anyone know what's going on?

[Roddiggiti]

Have a look at my due diligence report below. Oil going up, lots of light oil juniors that don't have bank debt are waking up. In the case of WCE, this all applies. But keeping in mind that there's only 31.4 million common shares, no options/warrants and they are going to be doing some workovers to increase their production. If they didn't have 6 wells to work on last quarter, they G

[Theconsortman]

Sitting on $400k cash with $1100k payables? Their subs must love them. Who is going to do the field work lol?

[666Crow]

Got to ensure the Pres. serverance is covered

[bdeparde]

Wescan bought this listing awhile back. Longterm history has nothing to do with Wescan, it was the former company company. I've copied an old posting of mine to give context.   Original Provost Asset Purchase Feb 2011 Canrock/Petrosands CALGARY, Feb. 25 /CNW/ - PetroSands Resources (Canada) Inc. ("PetroSands" or the "

[Theconsortman]

Petrosands went bankrupt with some of the same tired old assets. As of January 2021 Westcan was making 59 bopd. If they are clearing $50k per month that will clear out their current payables in a year and a half.  Tired old assets...

[bdeparde]

Personally I like tired old developed assets that you pay 5 to 10 cents on the dollar for. I would assume there is a lot of opportunities for water flood or poli to go down the well and get production back up. I believe they have multiple drill locations as well to drill new wells. Interesting little play at least I think at $60+ wti.   

[Theconsortman]

28 wells making 59 bopd total. Who do you sell this to?

[Roddiggiti]

Right now only 16 wells are producing, that's why they are raising $200k and getting 5 more into production. We should be over 100bopd once it's all done and this is low risk stuff. Replacing tubing from what I heard from an associate who spoke with management. On top of that there are almost 500,000 barrels of oil. At $60, the NPV is at least $10 million, but only shows $6.4 million in

[freedom-1970]

Can't get much better odds doing work overs at this oil price levels ... Work the numbers anyway you want this company has great upside from here !!  GLTA!!

[Theconsortman]

OK fair enough. What about the $1.1 million of payables? Do they not have to pay these before spending the $200k on workovers?

[Roddiggiti]

From what I was told by my associate, that's not the case. The $200k will go right to the workovers as crews are on standby. So we should have all 21 wells producing by month end.  Apparently there's around 70% of the float held by insiders and friends/family/co-workers of the company. So a lot of the liabilities are acutally much safer than it looks from the balance sheet. Once WCE

[Theconsortman]

I didn't include the 600k in insider loans. The $1.1 of payables is real, right from the sedar filings Hard to do workovers when you haven't paid your contractors from last time...Or surface lease rentals or...

[Roddiggiti]

Best thing to do is speak with the company if you do not believe me I guess. Why contractors and trades associated with these leases, that own shares, would want to all of a sudden get paid when they've waited before is a contradiction to your arguement. They know prices are higher and cash flow is going to increase, payables of this size isn't something new to Wescan.  Not sure if

[Theconsortman]

These numbers suggest run! Please convince me otherwise. I couldn't find the proved producing reserve value. If you could that would be great. These numbers concern me, they are not for you? The negative operating netback of $39 !! Debt: $694,158 on demand intrest rate 10% Mar 31,2020: Working Capital Deficiency: $1,528,545 Dec 31,2020: Working Capital Definciency: $1,980,542 (+$451,997)

[Dragoon]

The netback was this last Q3 negative because all the workover expenses have to be put in the operating costs - so negative for the netbacks - at the moment of billing. Add to this that the production was low because of many workovers and that's why it was negative. See the MD&A page 3 and you see that the costs - with the workover expenses and lower oil production because of the

[Theconsortman]

What happened? There were hoping for 100 BOPD but Nov 2021 is showing:  1240 bbls oil. 30 days in Nov 41 BOPD, 89% wc Will they still exit 2021 at 100 BOPD+ ??

[Roddiggiti]

Yes, they have several drill locations still and those will be much larger producers than just a shut in well that's being worked over.