WGP - Westralian Gas and Power

[The Barbarian Investor]

Looking at Westralian Gas and Power Limited who are listing on the ASX on March 23rd.- Anyone else interested in this listing?

Gas is produced in Western Australia in abundance and Westralian Gas and Power appear set for a prosperous future, exploring and producing CSM Gas, which is a natural gas and will be distributed to the southern parts of Western Australia as yet an untapped market.

The Western Australian government recently released its petroleum gazette containing a detailed article on the potential of CSM and a list of the five most prospective areas in Western Australia for CSM exploration.

“They highlighted the areas with the best potential and we had the most prospective of them,” said Peter Briggs, Executive Chairman of the company.

Westralian hopes to replicate the success of Sydney Gas, who produces CSM gas from sites in the Hunter Valley of New South Wales. The similarities are striking, as Sydney Gas’ tenements are located close to the Hunter Valley’s famous vineyards, while Westralian is beginning their exploration near the Margaret River, home of one of Australia’s premier wine districts.

Click here for more information or a copy of the prospectus http://www.australianinvestor.com.au/link.asp?key=west

[Smurf1976]

Where exactly are they going to produce and sell the gas? I assmume that this is in an area which doesn't already have natural gas available?

:)

[blackdogsbarking]

Western Gas & power - WGP

Is TREVOR LUNT about to inherit control of Brigg's interest in this company?
You heard it first on B.D.B!
Issue Price - 25¢
Highest Price - 27¢
Last Sale - 16¢

http://www.blackdogsbarking.com/content/latest.htm

[constable]

That large order got pulled once the sellers bit into it!

[the barry]

Interesting company though. Have hit oil on the first well they drilled and will be drilling another 6 wells in close proximity. The target depth of the wells takes about two weeks to drill, so it will only take a couple of months to complete the drill program. The next drill is underway and is only 600 meters from the first drill hole. Could be an interesting little punt.

[jtb]

That large order got pulled once the sellers bit into it!

and I was going to buy a million of the options last week:banghead:

[Mousie]

and I was going to buy a million of the options last week:banghead:

very sorry to hear that jtb, we can all understand how "the one that got away" feels like :(

anyway, just out of interest how did this one got on your radar last week?

[jtb]

very sorry to hear that jtb, we can all understand how "the one that got away" feels like :(

anyway, just out of interest how did this one got on your radar last week?

Appreciate the condolences mousie, cant win em all hey:) .
Have been watching it trend down from afar since listing.
Many years ago I worked in Nth Fremantle amidst the oil companies and remember seeing a drilling platform off port beach (stood out as you can imagine).
WGP have leases over these areas now.
Now I work in coal fired generation in Collie WA and used to be an exploration driller so I can appreciate the prospectivity of their exploration license covering the Collie coal fields (CBM being all the rage now).
The only thing that had been holding me back was the questionable reputation of one of the gents involved with the company:sly:
Once the options came down to bargain territory I was prepared to jump in regardless due to the long lead time............................
However am trying to be a bit more professional with my stakes these days ( though still a spec focus) and put the cash into EMRO instead.
Mainly frustrated that I held onto INL against my better judgement and suffered very badly on opportunity loss.
I'm partial to oil and gas and thus regret 'diversified' cash that I would rather have 'in' but put outside the sector as insurance.
Had a win with TRF though so I'm being rather greedy.

Were you in ?

Cheers

[Mousie]

Appreciate the condolences mousie, cant win em all hey:) .
Have been watching it trend down from afar since listing.
Many years ago I worked in Nth Fremantle amidst the oil companies and remember seeing a drilling platform off port beach (stood out as you can imagine).
WGP have leases over these areas now.
Now I work in coal fired generation in Collie WA and used to be an exploration driller so I can appreciate the prospectivity of their exploration license covering the Collie coal fields (CBM being all the rage now).
The only thing that had been holding me back was the questionable reputation of one of the gents involved with the company:sly:
Once the options came down to bargain territory I was prepared to jump in regardless due to the long lead time............................
However am trying to be a bit more professional with my stakes these days ( though still a spec focus) and put the cash into EMRO instead.
Mainly frustrated that I held onto INL against my better judgement and suffered very badly on opportunity loss.
I'm partial to oil and gas and thus regret 'diversified' cash that I would rather have 'in' but put outside the sector as insurance.
Had a win with TRF though so I'm being rather greedy.

Were you in ?

Cheers

That sure goes back a long way jtb, won't have seen the irony of it finding something in the US coming, that's for certain ;)

Was looking at the IPO many moons ago, not that the aforementioned gent scared me off, rather I rate others back then a better try

So as with all those I wished to have gathered at some point I look back and say to this one "hey, I'm glad I don't own you after all" :D

Then comes this blockbuster of an announcement and that someone was actually following what I had dismissed as a dog since listing, so just wondering why you'd so nearly missed out on them if you'd watched and wanted them

PS: Dunno much about the others you mentioned but TRF looks great IMO, so chin up bud :)

[Wysiwyg]

Now I work in coal fired generation in Collie WA and used to be an exploration driller so I can appreciate the prospectivity of their exploration license covering the Collie coal fields (CBM being all the rage now).Cheers

Bit of useless information but seeing Collie mentioned reminded me of a chap I knew for a few years from Collie that lived in a caravan park near Yallingup.He always talked about going back there one day.20 years ago now.Still picture him.

[chops_a_must]

Now I work in coal fired generation in Collie WA and used to be an exploration driller so I can appreciate the prospectivity of their exploration license covering the Collie coal fields (CBM being all the rage now).

And here I was thinking that they really should get some acreage over the Collie area and they already had it! DOH!!!

But with that, and the new discovery, it is potentially a company making development...

[Stop_the_clock]

Hope to see gushing thick black oil this week, and a nice gap up in share price when WGP trades again on Tuesday morning.;)

[Stop_the_clock]

Awaiting follow-up drilling announcement this morning, might be worth placing WGP on your watch list.

[the barry]

Interesting announcement, struck oil again in their next well. Worth reading the latest announcement to get an understanding as to what the company is trying to achieve. Almost no overheads, 6 more wells to drill, which should take at most 6 weeks to drill. Anyone got any thoughts on this?

[Stop_the_clock]

Looks like the gap is being filled now, this is a great sign of profit-taking and signals the next move should be up. We are awaiting more news on drill results.

6 wells to drill, over the coming 6 weeks, plenty of upside in this one.

[Stop_the_clock]

Up 19% in morning trade and finally broken the downward trend. Nice to see.

We still have another 6 more wells to drill over the coming 5 weeks, so I suspect further buying pressure.

[Stop_the_clock]

Are we all ready for the bounce...Volume has dropped off and now buying is starting to occur.

Could we see a break-out next week with new drill results?

[Profitseeker]

Big Announcement out.

[Stop_the_clock]

Westralian update on Kentucky oil project

Tuesday -April 24:Westralian Gas and Power Ltd (ASX code: WGP) reports the fourth load of oil from the Riddle-7 well in Kentucky, USA was delivered to the refinery on Friday April 20.

Total volume from Riddle-7 to date is around 400 barrels, being incidental oil production during drilling operations and during setting of the beam pump and production string.

The well has now been fitted with its beam pump, but has yet to be connected to electricity (connection expected in the next few days).

In the mean time it is flowing naturally to surface under reservoir pressure. "This is extremely encouraging for the expected production to occur using the beam pump," directors said.

Riddle-5 is being fitted with a beam pump and it is anticipated the well will be put on production by the end of the week.

This well is not producing oil to surface naturally because it is significantly higher above sea level than Riddle-7.

The Riddle-6 well site has now been prepared and permit to drill issued. The drill crew is due on site by Friday April 28 and it is expected to intersect the same producing horizons as Riddle-7 and 5.

Once the drill crew is released from Riddle-6 it will move to the Stockton lease to drill two seismically defined structures in the Murfreesboro Formation.

Westralian is now permitting a further four well locations on the Riddle lease to follow the drilling on the Stockton lease.

[Profitseeker]

If the last two drills are anything to go by, I would be expecting results from the latest drilling very soon. i am also expecting the flow resuts from riddle 7 soon. Fingers crossed. good luck to holders.

[Stop_the_clock]

Drilling Success - Riddle Well 6 Kentucky USA

Riddle #7 producing in excess of 20 barrels per day with no pump yet fitted

This equates to a minimum gross revenue of US$475,000 per year from this well alone.

Further good news that Riddle # 5 is being readied for production.

It also appears that Riddle # 6 has been successful.

Could we be looking at production of at least 100bpd from these 3 wells alone?

[ta2693]

The performance of this share today is very weak. It looks like everyone in this share is insider trader and know the news beforehand.

[Profitseeker]

This news was expected though. Once flow results are announced is when the real fun should start. If the drilling at the next premise is positive then it should really fly.

[ta2693]

This news was expected though. Once flow results are announced is when the real fun should start. If the drilling at the next premise is positive then it should really fly.

What if they got a dry well next time, how negative effect would be on this shares? Will it be pushed back to 10c?

[Stop_the_clock]

Very unlikely the share price would slip to 10 cents, given the current flow rates of past wells, and the oil already collected. Once pumps are connected flow rates will most likely increase, thus increasing the chances for more oil to be collected and hence the share price will rise accordingly.

Trading ranges of 22 to 25 cents has been discussed on Topstocks.com.au

...and a few members like myself are predicting ranges in the 40 cents very soon.

Once all wells are drilled and pumps added to those that are needed who knows how much oil will be collected and what the share price will be.

[ta2693]

Very unlikely the share price would slip to 10 cents, given the current flow rates of past wells, and the oil already collected. Once pumps are connected flow rates will most likely increase, thus increasing the chances for more oil to be collected and hence the share price will rise accordingly.

Trading ranges of 22 to 25 cents has been discussed on Topstocks.com.au

...and a few members like myself are predicting ranges in the 40 cents very soon.

Once all wells are drilled and pumps added to those that are needed who knows how much oil will be collected and what the share price will be.

Bad luck, they got a dry well. But they still got two good well and the potential is not identified. Stop clock do you still believe the price will come to 40c after the annoucement?

[Stop_the_clock]

What if they got a dry well next time, how negative effect would be on this shares? Will it be pushed back to 10c?

Bad luck you didn't get your target entry price of 10 cents after the dry well, better luck next time:rolleyes:

[Profitseeker]

I think we could get drill results tomorrow. I'd also like to think we will get flow results at the same time.

[Stop_the_clock]

On fire this morning, looks like oil is not the only thing leaking from this company, but information about flow rates too. Large trading activity means someone has a big mouth;)

[professor_frink]

Very unlikely the share price would slip to 10 cents, given the current flow rates of past wells, and the oil already collected. Once pumps are connected flow rates will most likely increase, thus increasing the chances for more oil to be collected and hence the share price will rise accordingly.

Trading ranges of 22 to 25 cents has been discussed on Topstocks.com.au

...and a few members like myself are predicting ranges in the 40 cents very soon.

Once all wells are drilled and pumps added to those that are needed who knows how much oil will be collected and what the share price will be.

Hi Stop the clock,

Why should this company get to 40c?

Can you provide some analysis as to why you think that will happen?

[Stop_the_clock]

Each 1 bpd repays itself within 9 months according to WGP' announcement.

If flow rates come in as expected between 150 to 400Bpd with all wells combined, then the share price will at least double from its current price.

[Stop_the_clock]

Here is a little more to add:

Current Market cap of 9 million.

If they prove up say 100-150 barrels of oil per day form riddle, which is quite possible - and they may even exceed that significantly if success continues - they will have a profit from that operation of around 1.5 million per year (at 100 barrels per day) which would justify twice the current price so I think the downside is limited.

This cashflow will provide a means of undertaking other exploration without too much further dilution, and if they were to hit gas or oil big time in WA the market cap could easily reach $200 million plus.

[doctorj]

Probably netting about A$45 per barrel after expenses, royalties and production taxes (these wells are generally very cheap to produce).

400bopd gives an annual operating cash flow on the existing of approx $6.5mill. 150bopd gives about $2.5mill.

Against a market cap of $9mill, even ignoring capex and admin costs, they're probably fully priced at the low end of the 150-400 bopd range. Should production reach the higher end of the range, they may be undervalued at current prices however at this stage, they obviously need to be discounted for risk.

[Stop_the_clock]

they obviously need to be discounted for risk.

Strange quote considering the opposite could be said..."they obviously need to be more expensive for reward."

[doctorj]

My point is two fold.

You wouldn't expect the mere prospect of 400bopd to result in a valuation of 400bopd. If production was to be in the range of 150-400, you could argue a valuation based on the lower end of the range and hence a discount on the potential.

Also, these wells can seem to flow forever and a day, but production does tend to taper off, even on pump. Hence its unfair to assume they will flow like this indefinitely.

Given flow rates are probably more likely to come in at the lower end of that range, you could argue that on a risked basis, they are fully priced. I certainly wouldn't call it a bargain.

[Profitseeker]

Doctorj,

I can see your point. However I do think there is an opportunity to trade them. They hit a high of 27c just on the news they had found oil. I think if the flow rates are around the 110bl mark then we should see a similar opportunity considering they are now at 18c. 2 days ago they were around 15c.

[Stop_the_clock]

Overdue for an announcement considering 11th of May stated 1 week for expected flow results. So heres hoping Monday bringes expected good news. I still reckon WGP is a buy at current levels considering there is far more upside, than downside.

Low cost drilling, with plenty of potential, makes investing in WGP less of a risk, than other oilers who have high cost drilling exercises.

[Stop_the_clock]

More gushing oil just discovered; 8.5 barrels an hour. Nice find and well done to the drilling boys

[Stop_the_clock]

200 bpd is over $4ml per year just in this new discovery- plus it only takes 2 tanker loads of oil to cover their drilling costs.

Riddle 11 has huge potential and they will sort out 5 & 7 in no time.

I still think WGP is way undervalued infact this probably an understatement.....

Todays announcement reads:

Riddle # 11

Westralian Gas and Power Limited is pleased to announce that it's Riddle #11 well spudded yesterday Kentucky time, has intersected the first of the predicted oil zone at 545 ft (165m).

The zone is flowing oil to the surface at an average of 8.5 barrels per hour. This flow rate was established over a five-hour test period.

The well is flowing unassisted with no water cut into a 210-barrel tank on site. The well will now be allowed to flow under reservoir pressure while setting up to place on pump as soon as possible.

This new discovery well consolidates the Company's view that it is well placed in a significant oil fairway in this part of the Cumberland County.

[Stop_the_clock]

Awesome annoucement just out:

WGP is now in talks with BP and Rio Tinto for carbon storage

BP Came to them ....This will put WGP on the media radar screens.

PLUS 200 BARRELLS A DAY FREE FLOWING...HOW MUCH MORE WILL FLOW UNDER PUMPING..AND THEY ARE HOOKING THAT UP THIS WEEK...

200BP X 365 DAYS X $65 A BARRELL = 44.7 MILLION A YR

ADD IN THE OTHER WELLS

AND THIS HAS TO FLY

SOMEONE ELSE CAN DO THE REST OF THE MATHS...i'VE SEEN ENOUGH

GLAD I HELD

[Stop_the_clock]

Additional info:

BP and CRA proposed development of a $2billion coal fired power generation at Kwinana W.A.

Negotiations ongoing with WGP to capture and store about 4 million tons of CO2 per annum.

WGP 54 million shares on issue .Todays 4 cent rise equates to only 2 million dollars.

What could this agreement be worth to WGP.

[Stop_the_clock]

I am quite suprised there is almost no discussion on this forum about WGP, and its recent announcments. Some big name companies have been thrown into the plot, and it is thickening. There is talk on another forum (Hotcopper) why BP or Rio Tinto did not consider just buying the leases from WGP instead of renting them.

Anyway on other news: we have seen more good flow results, and further drilling.

Here is the latest 3 month chart of WGP

[Stop_the_clock]

Is WGP a possible Takeover Target?

We might even see BP or Rio Tinto make a generous takeover offer to WGP. We do know that BP contacted WGP recently in regards to storage of Carbon.

Would a buy recommendation on WGP be to early to call?

[Profitseeker]

There is no chance of a takeover offer currently as otherwise we would have seen the offer already. What we do have is a company with a good plan. Secure revenue from Kentucky and the carbon trading; then drill the WA acerage. Short term Kentucy sucess will make it make new highs but the real company maker will be the results of WA. Come on give us the flow results!

[Stop_the_clock]

It would certainly be possible if we saw a few "change of substantial notices" recieved over coming months and a rise in share price.

Stranger things have happened.

Alls we need is for BP or Rio Tinto to buy more than 20% of WGP's shares, then come out with a take-over offer!

[Stop_the_clock]

Here is an overview with sums from "Neil_WA" (member from ******************)

60 barrels of oil per day just about justifies much of the current Mareket Cap. using $US40/barrel profit ($A50) giving $3000/day profit, approximately $A1.1m per annum.

With around 77 million shares fully diluted (inc non-listed options though not the 13,700,000 Converting Incentive Preference Shares (“CIPS”) that are not convertible until SP hits 40 or 50c) the MC is about $11.5m.

This gives a PE of about 10 if no further production is found - which would be a bit high for an oiler (usually like about 6-8 due to finite resource).

Another 50 barrels per day would justify current SP alone without factoring anything for the value of their other projects and possible gas storage with BP. IF an agreement such as - "you drill the holes for us now, we produce the hydrocarbons and take any profit from them (or even 50:50 profit share), then you use the reservoir after we have finished" the WA plays could be brought to fruition very soon and with very little cost and major potential upside.

This remains very worth a punt - there is much less downside than many other plays because costs are very low and they are already producing.

If they manage to produce a total of a couple of hundred barrels per day things really start to look rosy - and with cashflow to fund their major plays (WA hydrocarbons) they could hit the big time - especially for option holders with a potential 10-30 bagger.

There is risk though - remember most hydrocarbon specs don't make big money - but the ones which do can pay for 20 plays that don't because the potential rewards are so high and come onstream so early (often only weeks to months from spudding well to break-even and from then it is profit - compare to uranium or Iron ore with MINIMUM three years from tenement acquisition to production (more likely 5-6 years for Uranium).

This is worth a punt though be prepared for 60% chance of a loss of some of your capital, 20% probability break-even or close to it and 20% probability of 5-30 bagger.

Here is the sums as I see them:

60% chance of SP fall to 5-10c justifies 4-5c of current SP
20% chance of breakeven justifies 3.5c of current SP
20% chance of multi-bagger (average 5-bagger, range 2-30) justifies all of current SP.

So I believe fair SP is currently about 23c.

If the next well brings oil at around 50bopd, the sums swing very much more in our favour, with probability of losing falling to about 10-20% (with suitably applied stop loss), break even about 50% and a multi-bagger 30%

[Stop_the_clock]

In terms of charting we now see the formation of a "Dragonfly" Doji, (Marked in the red circle) which represents the bottom and a reversal signal is now current.

Definition:

The Bullish Dragonfly Doji Pattern is a single candlestick pattern that occurs at the bottom of a trend or during a downtrend. The Bullish Dragonfly Doji Pattern is very similar to the Bullish Hammer Pattern mentioned above. The distinction between the two is if there is a body or not. In case of Bullish Dragonfly Doji Pattern, the opening and closing prices are identical and there is no body. On the other hand the Bullish Hammer Pattern has a small real body at the upper end of the trading range.

Recognition Criteria:

1. There is an overall downtrend in the market.
2. Then we see a Doji at the upper end of the trading range.
3. The doji has an extremely long lower shadow.
4. However the doji does not have any upper shadow.

Explanation:

The market is in an overall bearish mood characterized by a downtrend. Then market opens and sells off sharply. However, the sell-off is suddenly abated and the prices reverse direction and start going up for the rest of the day closing at or near the day’s high thus leading to the long lower shadow. The failure of the market to continue in the selling side reduces the bearish sentiment. Now the shorts are increasingly uneasy with their bearish positions. If the market opens higher next day, many shorts will have a strong incentive to cover their short positions.

Important Factors:

The Bullish Dragonfly Doji Pattern is a more bullish signal than a Bullish Hammer Pattern. Its reliability is also higher than the Bullish Hammer Pattern.

However, a confirmation of the trend reversal implied by this pattern by either a white candlestick, a large gap up or a higher close on the next trading day is still suggested, to be on the safe side.

WGP Chart

[kennas]

Here is an overview with sums from "Neil_WA" (member from ******************)

Here is the sums as I see them:

60% chance of SP fall to 5-10c justifies 4-5c of current SP
20% chance of breakeven justifies 3.5c of current SP
20% chance of multi-bagger (average 5-bagger, range 2-30) justifies all of current SP.

So I believe fair SP is currently about 23c.

If the next well brings oil at around 50bopd, the sums swing very much more in our favour, with probability of losing falling to about 10-20% (with suitably applied stop loss), break even about 50% and a multi-bagger 30%

:eek:

I have absolutely no idea how anyone has come to these percentages, and conclusion that this is a 30% chance of being a 'multibagger'. Just abosolutely rediculous conclusions as a matter of fact. I'm perplexed to say the least. :dunno:

From a charting perspective, the divergence of the MACD to the chart makes it look pretty vulnerable, IMO. Amazingly low volume. The dragon fly doji is interesting, and the last one it had proved to be a reversal of some sort, but a previous one took it down from .175 to 15 in 3 days.

[Stop_the_clock]

Yes its quite amazing how people read things so differently. The sums add up to this conclusion and the chart adds up to that conclusion.

So what do we do...throw the sums and charts away and read tea leaves?

Maybe its like the bible...an event occured in history, and then the story was told by so many different people, with so many different outcomes.

When it comes to T/A and F/A, I have no f_u** en idea, and it would appear that the experts tend to disagree on everything as well.

I constantly see examples of very well thought out T/A and F/A, only to have it shot down by another member.

On that note I put my hands up in the air, and await for Tuesdays close to confirm a bullish outcome, that will cement my Dragonfly Dijo as being correct. If not then I stick my fingers up to T/A, as it has no basis of being right!

Just by chance can anyone confirm without a shadow of a doubt that T/A actually works?

[Stop_the_clock]

From what I can see the last doji took it from a bullish into a bearish pattern. This time the doji occurs at the end of a bearish run, signalling a bottom, and a reversal.

I stress though:

...a confirmation of the trend reversal implied by this pattern by either a white candlestick, a large gap up or a higher close on the next trading day is still suggested, to be on the safe side.

[kennas]

On that note I put my hands up in the air, and await for Tuesdays close to confirm a bullish outcome, that will cement my Dragonfly Dijo as being correct. If not then I stick my fingers up to T/A, as it has no basis of being right!

Just by chance can anyone confirm without a shadow of a doubt that T/A actually works?It does work, but only to probabilities. You know that STC! This individual situation is not the absolute judgement of TA, just another example. Just like all FA recommendations can be close to correct - one way or the other - pending other unforseen events. :)

[Stop_the_clock]

Well strike me bloody pink...I reckon T/A is actually working WGP is up slightly this morning, how ironic is that:rolleyes:

Yes I have just been converted now...I see the light;)

Thankyou chartist, the dragonfly doji works, it really, really works!

[Stop_the_clock]

Look what is happening yet again: Another Dragonfly - Doji.

The last one that appeared caused a bullish run!

[moneymajix]

Current price is 15cents

Ann. out today.

Westralian Gas and Power Strikes Gas Deal with Electricity Generation
Developer; Expands US Oil Operations

July 4, 2007 Perth-based Westralian Gas and Power (WGP) is pleased to announce
the signing of a heads of agreement with ERM Gas. ERM Gas is a wholly owned
subsidiary of ERM Power a developer of gas fired power stations.
Under the terms of the deal, ERM Gas has the option to explore WGP’s coal seam
gas leases in south west Western Australia and fund their development with the
intent of supplying coal seam gas to ERM Power affiliated power stations.
ERM Power and its affiliated companies have interests in some 1700MW of gas fired
power generation in operation or under construction with several more major projects
in planning.
WGP Chairman Peter Briggs said he is delighted with the deal as it provides free
carry for WGP with all exploration costs through to production met by ERM Gas and
25 percent of gas reserves being retained by WGP. The Company’s initial
exploration program for the region has added weight to the concept that economic
reserves of natural gas are contained within the lease areas. With a substantive
partner keen on sourcing gas for power station projects, further exploration should
move along well. “Currently there is a gas shortage in Perth, and supply of gas to
power generation is a perfect fit for both WGP and ERM Gas,” he said.
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.
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 ERM Gas). This will allow WGP to carry out
more exploration and drive other operations through to production.”

Kentucky USA: WGP 100 percent owns Sunset Energy LLC with 2,200 acres of
oil producing leases in Cumberland County Kentucky USA. This provides WGP an
ongoing and increasing revenue stream due to a successful and continuing
exploration program, which is to be expanded following a $350,000 capital raising
last week. The first of a program of 10 new wells are to be drilled towards the end of
July with more set to follow.

Perth Basin: WGP also holds two significant off-shore oil and gas exploration
permits with a 50 percent share of 4530 sq km of promising Perth Basin acreage
directly offshore Perth, Western Australia (Rottnest Island south to Mandurah). The
company also has last week acquired a 450 sq km onshore oil and gas exploration
permit EP455 located 12 km south of Eneabba.

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

[moneymajix]

Article in the Australian

http://www.theaustralian.news.com.au/story/0,20867,22024476-643,00.html



17c - up 9.677%

[Stop_the_clock]

WGP just turned very bullish this morning with large trading activity. Finally more buyers than sellers. Might have been a delayed reaction to the last announcments.

Also note 10 oil wells to be drilled in July

Current share price 18.5 cents

[Stop_the_clock]

Drilling program of 10 wells starts this week in Kentucky, USA. Also note WGP has acquired more land leases.

See latest announcement.

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00739583

Current share price 17 cents

[Stop_the_clock]

Current market cap of WGP is just over $10 million.

I see the current share price of 17.5 cents rising to at least 20 cents by weeks end just in pure speculation of the 10 well drilling program.

If WGP has any good hits of oil we are likely too see the share price spike to 40 cents or more.

If all 10 wells hit oil and bring the the surface about 30 bopd, then we have another 300 bpd to add to the market cap.

[Pommiegranite]

Current market cap of WGP is just over $10 million.

I see the current share price of 17.5 cents rising to at least 20 cents by weeks end just in pure speculation of the 10 well drilling program.

If WGP has any good hits of oil we are likely too see the share price spike to 40 cents or more.

If all 10 wells hit oil and bring the the surface about 30 bopd, then we have another 300 bpd to add to the market cap.

Dude...I'm interested in buying an energy stock.

However, having gone through this thread, I'm having a hard time taking any useful information out of it.:confused:

It seems to be full of predictions and contradictions, all by yourself.

Please can anyone lend weight to STC's price predictions?

[Joe Blow]

If WGP has any good hits of oil we are likely too see the share price spike to 40 cents or more.

If all 10 wells hit oil and bring the the surface about 30 bopd, then we have another 300 bpd to add to the market cap.

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?

[Profitseeker]

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]

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]

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]

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]

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

[Stop_the_clock]

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.

[Stop_the_clock]

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]

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 :D:

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

[Stop_the_clock]

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]

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]

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.

[Stop_the_clock]

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]

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]

UP 20% to 15 cents

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

[Stop_the_clock]

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

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:rolleyes:

[moneymajix]

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]

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]

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.

[Stop_the_clock]

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.

[Stop_the_clock]

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).

[Stop_the_clock]

WGP announced late yesterday arvo that a Share Purchase Plan is about to take place. Each shareholder is entitled to buy $5,000 worth of WGP shares at the discount price of 11.5 cents a share.

...which means every man and his dog will be jumping in this one!

[moneymajix]

Ann. out

NOT SO UNLUCKY #13
The Company spudded and drilled The Riddle #13 well over the past 24 hours and at
3.45am Perth time (2.45 Kentucky time) the drilling penetrated the top of the Stones
River Formation directly below the Pencil Cave and proceeded to flow large volumes of pure oil to the surface.


Micro-cap. oil producer

18c up over 33%

hit 19.5c

[tigerboi]

does any one have info on this company as there seems to be a breakout on anns of oil flowing any heads up would be great?

[moneymajix]

Read the thread...


Revenue coming in from low-cost oil production in Kentucky.

They have other projects.

WGP had the foresight to secure most of the prospective coal seam methane leases available in WA.

They have 2 JVs - ERM Gas is one.
ERM to fund all exploration costs fo WGPS's Coal Seam gas leases with the intent to fuel ERM Power.



Nice stock imo.

[Kalmsg]

WGP has a announcement out they have hit a gusher of oil in Kentucky. This looks good from the sound of the announcement. The share is up 62% as I write this.

[Jimminy]

highly speculative company.

If you know the motor museum at Fremantle, well the same guy started this co. He is a bit dodgy though - been in prison.

ERM power have tabs on their tenements in WA.

But yes, the announcement on the surface sounds bloody terrific.

I have a stash of these purely because of ERM - I have had personal dealings with the ERM founder (St. Bakers) - they are good operators..

[roland]

In at .26 out at .30 - not much of a risk taker am I.

I think I need more skill to know when to get in and out - super fun though, to hold a stock for just 10 minutes or so and make a whacking proft :)

[runningrugby]

Cant wait to hear from 'Stop the Clock', i know he made numerous comments in the past about 'talking to himself' about this stock. I received the recent offer to buy the shares at 11.5 cents. Looking pretty good right now! When they sent the offer they included a 4 page update in relation to the company. They mentioned something about them 'getting close to announcing a joint venture with a large company' for further exploration. Maybe Stop the Clock might have something to say about this? I can assume more people might be listening this time....
Good luck to all holders!!

[moneymajix]

Range today
13 - 39c


Well done to holders, especially the long-term ones.


Stop the Clock, may be annoying, and there seems to lay something behind some of the shares he follows.


Good day today.


I am in again with the 11.5c shares in the share purchase plan.


:)

[BIG BWACULL]

Cant wait to hear from 'Stop the Clock', i know he made numerous comments in the past about 'talking to himself' about this stock. I received the recent offer to buy the shares at 11.5 cents. Looking pretty good right now! When they sent the offer they included a 4 page update in relation to the company. They mentioned something about them 'getting close to announcing a joint venture with a large company' for further exploration. Maybe Stop the Clock might have something to say about this? I can assume more people might be listening this time....
Good luck to all holders!!
I think he would have mentioned something by now, Possibly all his $$$ in the Super Fund for purchase of house :p:

[Stop_the_clock]

Aint saying a word, I just get a bit tired of talkin' about stocks and no one listens or they just put me down in a public forum...then the stock runs and everybody is your best friend....oh how the cyber world imitates the real world:rolleyes:

[roland]

Aint saying a word, I just get a bit tired of talkin' about stocks and no one listens or they just put me down in a public forum...then the stock runs and everybody is your best friend....oh how the cyber world imitates the real world:rolleyes:

Stop the Clock - I listened, I waited, I bought, I sold, I made a profit, I am happy. Keep talking and I'll keep listening.

[Stop_the_clock]

Well done and profits to all...I am taking a holiday with my profits, need some time away me thinks;)

[Kalmsg]

Has anyone heard if the drill rig at the Riddle 13 well has now been moved on to the next spudding site? There is no point in the drill rig remaining there if the oil pressure from the Riddle 13 well is to great to keep on further drilling.


Usually great oil pressure in a oil well is associated with a amount of oil in a reservour under great pressure does it not. Would be interesting to see how many barrels are produced per day from riddle 13.

[ands]

Article posted on Ninemsn.
http://news.ninemsn.com.au/article.aspx?id=289495

More oil flow in Kentucky for WA junior
Thursday Oct 11 17:57 AEST

Another of Westralian Gas and Power Ltd's oil wells in the US state of Kentucky has flowed large volumes of oil to surface.

Shares in the junior oil producer closed 19.5 cents higher - a jump of 144.44 per cent - to 33 cents on Thursday.

The shares hit an intraday height of 39 cents, a rise of 300 per cent.

The well flowed strong enough to prevent it from being drilled further.

Oil from this well will eventually be flowed into tanks at another producing well on the same lease.

The company works to a concept of `oil farming', whereby it gains steady cashflow from several small wells.

It is chaired by Alan Burns, who helped steer Hardman Resources Ltd from being a penny stock in 2000 to a $1 billion plus company that was ultimately taken over by UK-based Tullow Oil last year.

Westralian's market capitalisation is almost $19 million.

[roland]

WGP has come off it's highs, any of you guys think it is worth another look. I guess the lack of news after Riddle 13 has bored everyone,

[Aussiejeff]

Might be worth holding off for a bit. Reading their reports it seems they had some problems with the subterranean structure crumbling under the higher flow rate and they had to choke back to a mere 20 BBLS per day - hardly the "gusher" that excited punters first thought had been struck.

Then there is the share issue plan they announced after that....

SP is down 20% as I type to 15.5c.

AJ

[moneymajix]

Got my shares from the spp today.

I won't sell until sp is much higher.

Current sp. 16c

Cheers

[runningrugby]

anyone have any information in relation to the price increase?
had a high of 20.5 cents with massive volume! no announcments that i can see. had a low of 12 cents yesterday with little or no volume. makes a little frustrating i must admit??

[psychic]

Time to bump this thread as we have seen a little action on WGP of late. The share price has gone from 1.8 to 2.5 cents within a week, and now dropped to 2.2 cents. WGP is an oil and coal seam gas exploration company. WGP has just raised $1 million in cash to be used for new projects.

Might be worth a look ;)

[psychic]

The price of oil is on the rise so it does make WGP look very attractive, also note WGP have been stock-piling oil in the U.S. until the price of oil rises according to this announcement

http://www.westraliangasandpower.com.au/documents/475.pdf

[snorer]

Some life still present in this stock, a long way from the highs of 2007, but a massive trade today of 179 million shares topping off an increase of 1.40% since November 4. I am not a holder but have watched this one with interest over recovery period. Some interesting reading in their latest announcements.

[warrenatk]

http://www.asx.com.au/asxpdf/20110228/pdf/41x4351kgh0grh.pdf

update about the basin that EOG tapped into and how there is alot of gas near WGP also... could be interesting might be worth watching this one :)

[barney]

http://www.asx.com.au/asxpdf/20110228/pdf/41x4351kgh0grh.pdf

update about the basin that EOG tapped into and how there is alot of gas near WGP also... could be interesting might be worth watching this one :)

Can never be sure about these little Specs whether they are being pumped or not, but up 11% this arvo.

Bought a few just in case there is fire near the smoke!!