WesCan Energy Corp V.WCE

Insider support shows much promise with WCE's property

[Roddiggiti]

Just a quick history lesson here. In 2015, Leo Berezan (WCE's largest shareholder) sold the current producing property to WesCan for shares. Over the past 6 years, Leo has continued to increase his position in WCE, the largest increase just happened now. It's very likely that Leo knows the full potential of the property since he was the prior owner. Seeing him buying stock before the workovers and potentially a drill program is as good as it gets in terms of where things are headed. Company production costs range from $29-36 a barrel, as per the last 6 quarters. So to double the production and get $60+ for your oil, it's obvious to see that the company is making good money right now.

[Theconsortman]

Woah. Didn't the Provost property come out of the bankruptcy process with Alston? Are you saying it went Alston>Trustee>Leo>Westcan? The longer history is King Energy>Petrosands>Second Wave?>Alston.. This property has been a graveyard for many..or not?

[bdeparde]

I wonder if there is a water flood or polymer potential to boost production. Technology has come far in the last 5 years. It's a conventional field so probly recover a lot of lost production... anyone know if this is possible?

[Roddiggiti]

Company told my associate that there's a few options, but the best path forward in terms of really increasing production is drilling a couple conventional wells. High chance of success given the enormous amount of data from that field and cost vs production possible looks good. Their 25 wells(including the workovers being done now) provides a solid base and then a new catalyst, whatever it is,

[bdeparde]

Surge and dark warrior resources only two drilling near provost, I was always hoping for surge to buy the asset out.

[YouSellandIBuy]

Very good opportunity with light oil and wescans low cost of production. This could be bought out still because the asset has longevity in the pool and can be expanded to a larger resource. Strong buy sub 10 cents.

[bdeparde]

I have 520,000 shares at a price of 5.85 cents. That works for me. But isn't their oil battery worth around 6 million on its own? A lot of assets here but I struggle to know the true worth... 

[Roddiggiti]

I was told that there's $5 million just in infrastructure value on the property, nevermind the roughly half million barrels of oil. The value of this asset has not yet been fully recognized, but I think that's about to change.

[bdeparde]

Well let's hope oil ranges from $60 to $80 Wti for remainder of 2021. Will make for an interesting hold, seems it has some decent torque. We are not in an commodity super cycle, but the next couple years look favourable for commodities. Now let's get this driving season underway! 

[Dragoon]

Not only infrastructure, they got a factory to process the oil themselves with room for more production! I don't know if you included that in the infrastructure. And yes, currently oil prices are not processed in the stock price, including the actual low production cost of average 35 netback costs including workovers (2017-2020) and 30 without workovers!

[Roddiggiti]

Not exactly sure on what specific infrastructure they have, except that nothing has to be trucked in or out. So this is a huge advantage when it comes to lower cost and greater economics. Having a facility with a resource that can produce for the next decade has more value than the mere $2.4 million market cap the stock is trading at now. In my opinion, fair value of WCE with the workovers done

[bdeparde]

This reminds me of the back in the day when I yolo'd wzr.v at 9 cents when isis was running around. They got bought out for 27 cents!