WGP - Westralian Gas and Power

[Profitseeker]

Re: WGP - Westralian Gas & Power

One of the previous wells they have drilled is producing about 50 barrells a day and the others are combining about 5 a day. One well also hit nothing and the other was closed for not being viable So maybe he is just averaging them out. Still not based on anything scientific. In the announcement released yesterdaythey stipulate that drilling should begin on a ten hole project by the end of this week. These holes historically have taken around three days to complete. Therefore WGP should be seen as a speculative stock with the potential for large upside in the near future if they do hit some good wells but also the potential for large downside if the ten holes come up with nothing. It therefore comes down to your tolerance of risk.

 

[Pommiegranite]

Re: WGP - Westralian Gas & Power

One of the previous wells they have drilled is producing about 50 barrells a day and the others are combining about 5 a day. One well also hit nothing and the other was closed for not being viable So maybe he is just averaging them out. Still not based on anything scientific. In the announcement released yesterdaythey stipulate that drilling should begin on a ten hole project by the end of this week. These holes historically have taken around three days to complete. Therefore WGP should be seen as a speculative stock with the potential for large upside in the near future if they do hit some good wells but also the potential for large downside if the ten holes come up with nothing. It therefore comes down to your tolerance of risk.

Thanks Profitseeker,

Just as I thought, this stock appears far too speculative for me. I think I would rather wait and see how the drilling pans out.

 

[Profitseeker]

Re: WGP - Westralian Gas & Power

One thing to bear in mind though is that the drills are occuring in what the company considers to be the same fault as the well which is delivering 50 barrels a day. I do like this company but think that is a long term prospect as opposed to a get rich quick scheme. They have quite a few projects and are been carried through their drilling in WA scott free by ERM.

 

[moneymajix]

Re: WGP - Westralian Gas & Power

Hi

They have other projects besides seeking oil in Kentucky.

One mentioned in a recent ann. re gas supply in Western Australia. If this side of things could be developed it would be fantastic. Gas in short supply in WA. ERM pays for exploration and WGP get 25 percent free carry.

Jul 2007 11:26 ! Announces deal with ERM Gas

 

[Profitseeker]

Re: WGP - Westralian Gas & Power

True. And yesterday they announced that they had acquired new tenements. Again a reason why long term I like the look of the company.

 

[krisbarry]

Re: WGP - Westralian Gas & Power

Kris, where did you come up with a figure of 30 bopd per well from? Did you pluck this out of thin air or is it based on something?

The announcement on the 17/07/07 clearly states that some of the older drilled wells in this location (Burksville, Kentucky) produced over 30 barrels a day. So lets assume that they drill at least 10 wells in this location we could be looking at the posibilty of 300+ bpd. Could be less of course, but it could also be more.

 

[krisbarry]

Re: WGP - Westralian Gas & Power

Drilling is well underway on its current 10 well drilling program. Share price has of course dipped, manipulation I call it. We all want shares at a cheaper price so some forced selling has come into play to create a dip. Trading ranges from 14.5 cents to 18 cents over the past month.

Look out for the pre-open and drill results over coming days. I am anticipating at least a couple of announcements this week.

 

[Pommiegranite]

Re: WGP - Westralian Gas & Power

Drilling is well underway on its current 10 well drilling program. Share price has of course dipped, manipulation I call it. We all want shares at a cheaper price so some forced selling has come into play to create a dip. Trading ranges from 14.5 cents to 18 cents over the past month.

Look out for the pre-open and drill results over coming days. I am anticipating at least a couple of announcements this week.

..but surely the SP is crashing and there is blood on the floor, as per your analysis here :

https://www.aussiestockforums.com/forums/showthread.php?t=7664

 

[krisbarry]

Re: WGP - Westralian Gas & Power

More Oil On Riddle Lease


Westralian Gas and Power (ASX:WGP) subsidiary Sunset Energy has spudded Riddle #10, Kentucky, USA, and intersected live oil at 765 ft (235m).

Work has been suspended overnight and the well will be put on test in the morning.

What an awesome day for me, but a filthy red day for most...gotta love these corrections.

 

[moneymajix]

Re: WGP - Westralian Gas & Power

12.5c

ANN - CARTER SUCCESS

The Company is pleased to announce that its wholly owned subsidiary Sunset
Energy LLC has completed the first of its wells on the Carter Lease (Carter
#24)
The well reached a total depth of 377 feet (115metres) and intersected oil at
347ft (106metres) and 367 feet (113metres). The well will now be treated and
put on pump by the end of the week.
The producing horizon is the Granville Sand and was delineated using results
from the seismic survey recorded late last year. The Granville Sand is known
to produce oil in the range of 5 to 10 barrels per day over many years in fact
several wells in the lease are still producing after 30 years of production
although only at one barrel per day.
Shallow Granville wells cost the company in the vicinity of US$12,000 to drill
and complete and with a US oil price of $70+ the Company will recover its
initial drilling costs within two months of the commencement of production.
The rig has now moved to the Carter #26 well site and will commence drilling
on Monday morning US time. Cater #26 is located 800 metres north west of
Carter #24.
Two further wells are planned for this lease before the rig is moved back to
the Riddle lease to drill Riddle’s #13 and #14
Riddle #11 continues to produce oil under pump at approximately 40 barrels
per day and work is continuing on the wells drilled recently to bring those,
which have had good shows of oil, into production in the near future.
The existing production wells on both Stockton and Carter continue to
contribute small volumes of oil to the inventory.

 

[moneymajix]

Re: WGP - Westralian Gas & Power

Ann.
24 Aug 2007 12:32 ! Trifecta For Carter Lease

The Company is pleased to announce that its’ wholly owned subsidiary Sunset
Energy LLC has completed the third of its wells on the Carter Lease (Carter #21) as an oil producer.

The well reached a total depth of 310 feet (95 metres) and encountered oil at
281ft (86.5 metres) which continued for a further 27 ft (9 metres) to 308 ft (94 metres). Drilling ceased at 310 ft (95 metres) with oil being blown to surface during drilling. No water was encountered during drilling after setting surface casing. The well is now being completed as a producer and is being fitted with a pump and tank. Pumping will commence as soon as possible.

etc


Adding to the revenue stream, I guess.

Current sp - 13.5c.

 

[krisbarry]

Re: WGP - Westralian Gas & Power

Great to see all 3 wells drilled are oil producing, adding further value to WGP bottom line. More profits to fund future projects.

Below is the current 6 month chart

 

[wallaboy]

Re: WGP - Westralian Gas & Power

New Announcement out...

Westralian Gas and Power, Strike $37 million Perth Offshore Exploration
Deal with ROC Oil
September 4, 2007 Perth-based Westralian Gas and Power (WGP) with joint
venture partners Lempika Pty Ltd (25%) and Emphazise Pty Ltd (25%), are
pleased to announce the signing of a $37 million heads of agreement with ROC
Oil assigning it the rights to explore and drill two wells in two offshore petroleum
permits W05-21 and W05-22, comprising 4530 sq km, in the Vlaming Sub-basin
ranging from Rottnest Island to Mandurah.
Under the terms of the Farm-in Agreement, which is subject to government
approval, ROC has acquired a series of three options that can be sequentially
triggered by funding a three staged work programme. ROC has already
committed to funding the first earning stage whereby it will acquire an initial 20%
interest in the two permits and be appointed Operator, by funding 100% of A$2
million of pre-seismic exploration activity.
It is ROC’s current intention to also commit to the second earning stage whereby
it will acquire an additional 20% interest in each permit by funding 100% of a A$5
million 2D/3D seismic programme. If ROC commits to the third earning stage,
the funding of 100% of a well in each permit up to a total cost of A$15 million per
well, will earn an additional 40% interest in the permit in which the well is located.
On this basis, if ROC exercised all its options it would acquire 80% interest in
each permit for a total cost of A$37 million.
WGP Chairman Peter Briggs said he is delighted with the deal which
provides free carry for WGP with all exploration costs through to production
met by ROC Oil. “ROC is a strong player with a wealth of experience in
exploration and production within the Perth Basin so they are a natural fit for
us.”
“The leases, on Perth’s doorstep, are strategically located close to the
Kwinana refinery and are described by the Dept in promising terms,” Mr
Briggs said.
Mr Briggs said: “WGP is committed to building its energy portfolio by seizing
further energy opportunities through increased exploration and beneficial
'free carry' partnership arrangements such as with ROC Oil (and ERM Gas
last month). This will allow WGP to carry out more exploration and drive
other operations through to production.”
Lempika and Emphasize are family companies of Alan Burns. Mr Burns,
who is also a director of WGP said, ROC has experience in the Perth Basin,
which is nicely matched by Burns family companies’ activities on the same
acreage.
Background:
The permits are described by the Department of Industry and Resources as
having “…a petroleum system present…” with “…seismic data providing further
evidence of a potential active petroleum system in Areas W05-21 & W05-22, with
an apparent gas chimney imaged”.
Source:
http://www1.industry.gov.au/acreagereleases2005/html/vlaming_sum.htm
WGP – A Diversified Energy Player: Since floating on the ASX in April 2005 as
a dedicated coal seam gas explorer, WGP has successfully transformed itself
into a diversified energy player boasting a portfolio of promising assets ranging
from coal seam gas exploration, oil and gas exploration, oil production, through to
CO2 geosequestration.
Coal Seam Gas: In July, WGP signed a deal with ERM Gas, a wholly owned
subsidiary of ERM Power a developer of gas fired power stations, to explore
WGP’s extensive coal seam gas leases in south west Western Australia and fund
their development with the intent of supplying coal seam gas to ERM Power
stations in WA.
Kentucky USA: WGP 100 percent owns Sunset Energy LLC with over 3000
acres of oil leases in Cumberland County Kentucky USA. This provides WGP an
ongoing and increasing revenue stream due to a successful and continuing
exploration program. The company is three wells into a ten well drilling program.
Perth Basin: In addition to the leases covered by the ROC Oil deal, the
company also holds a 450 sq km onshore permit EP455 located 12 km south of
Eneabba which is prospective for gas.
CO2 Geosequestration: The Company is also investigating the provision of
geosequestration of CO2, from BP/Rio's proposed Kwinana power station, into
formations located in its Perth Basin lease area.
Stephen Thomas
Managing Director

This looks very promising and adds further to the potential revenue stream.

 

[moneymajix]

Re: WGP - Westralian Gas & Power

UP 20% to 15 cents

This company has a number of things happening and the announcement today sounds great.

 

[krisbarry]

Re: WGP - Westralian Gas & Power

A ripper announcement out today, and such little discussion...really piss poor effort by Aussie Stock Forum members

Why do we have such little discussion on WGP?

I would expect a much bigger discussion in future, considering the membership levels of ASF is reaching 10's of thousands...and now there are no excuses!

WGP is simply another little gem stock just ignored by so many members.

ohhh god why do I bother....might as well just buy another bucket load of EGO shares and chat all day about a company ready to issue millions more shares...billions in fact

 

[moneymajix]

Re: WGP - Westralian Gas & Power

The ann. is likely to get some media attention which will bring this stock to greater awareness.

I have my fingers crossed re gas project in WA which looks to have good potential too.




Stop the Clock

EGO not so popular these days. Only up 3% today on good Canning Basin ann. Whilst, EMR, one of the partners in the project up 18%.

 

[doctorj]

Re: WGP - Westralian Gas & Power

Why do we have such little discussion on WGP?

I haven't digested the announcement yet, but I suspect it's because producing 10bopd/well isn't going to get anyone too excited.

At the spec end of the market, you need something interesting to get the liquidity going and to make for an interesting risk/reward proposition. If steady is what you're after then the spec end isn't the place to look. Personally, before this announcement WGP was about as interesting as a rainy day at the cricket.

That said, this new announcement may be interesting and more discussion may follow.

 

[moneymajix]

Re: WGP - Westralian Gas & Power

I think it is quite interesting, to be honest. I am not being contrarian.

This would have to be one of the few specs around that generates any revenue. The revenue, from its oil fields in Kentucky, is from low cost drilling.

It is not sexy but money generated non-the-less. How many specs do you know that generate revenue?

The management seem quite proactive with a number of projects including a gas project in WA with ERM (see ann). Success here would be a real beauty.

Now the announcement today.

The share price also held up reasonably well during the recent downslide.

I don't think it has billions of shares on issue either.

 

[krisbarry]

Re: WGP - Westralian Gas & Power

Yes that is the good thing about a spec stocks such as...REVENUE

Here is a small snapshot of WGP's current position

57,392,500 millions shares on issue (very tiny and will run hard on good news)

Current market cap of $8.6 million (way undervalued)

...More wells drilled with more oil, and more land leases too.

 

[krisbarry]

Re: WGP - Westralian Gas & Power

Here is a little light reading to pass the time...this is where ROC oil and WGP will be exploring/drilling

.....The pre-breakup section is highly faulted over most of the Vlaming Sub-basin which creates numerous potential fault-controlled traps. Faults juxtaposing sandstones from the Yarragadee Formation and Parmelia Group against lacustrine shales (Otorowiri Formation, Carnac Formation) may provide a valid trap . Reliable identification of the fault-controlled trap depends on an accurate interpretation of the lithological succession. Crostella & Backhouse (2000) noted that reliance on a fault seal in sandstone-dominated successions, which are typical of the Vlaming Sub-basin, carries a substantial risk. This is highlighted by the gas chimney in WO5-21 & WO5-22, which occurs above a tilted fault block in the pre-breakup section. However, this play type has the potential to trap up to 250 million barrels of oil in the Yarragadee Formation at the Gage Roads Prospect (Seggie, 1990).