Ann: Quarterly Activities and Cashflow Report, page-13

Once Rex 1 starts producing, secure savings from water injection well at Paadle River (meant to save $80k per month in costs) and the current higher oil price, WBE should be close to break even in regards to cashflow covering all costs.  Problem with current production is that over 50% of it is gas which has a very low sale price in Alberta. The good thing is Rex is mainly oil.

Management must be happy because their salaries will continue which may not had been the case if not for the Rex discovery.  Based on past performance it would have been very difficult to raise additional equity.

The current EV is about $1.4m which shows you what the market thinks about management.

WBE need to drill the next well ASAP because salaries & admin are 700k a quarter.

Hopefully the next Rex wells are successful and WBE should move towards 1 cent.  Then we need Xanadu drill to be successful to get the contingent sale proceeds and value of TEG shares to rise.  

If WBE could secure a farm in for Warro and crack the production code(hopefully Canada experience helps) then we would see a substantial increase in value.  Not sure if this is achievable based on how tight the gas field is.  

WBE massively overpaid for the current producing assets in Canada.  From memory in excess of $5m for production that barely breaks even prior to workovers let alone other costs.

The Rex acquisition however looks a winner and increasing WBEs share to 30% was good.