Thanks for the heads up. I have just read the report.
PLX raised $3.2m in October 18 to fund 2 wells (Rex & Lower Manville). The warrants were issued at the same time and have a conversion price of CAD $0.39 per share. After drilling of the first Rex well they should have about $2m cash remaining (my rough calc).
PLX has $2.5m in convertible debt maturing 28 June 2021.
The completion cost of Rex well is $1.1m.
Based on this I agree that we should be able to secure at least 30% share of future Rex wells.
Based on WBEs cash, TEG and using the comparable EV for PLX to WBE we should be trading at 0.007 cents per share ( this excludes Xanadu contingent payments and Warro).
As outlined previously the Rex well is transformational for WBE and PLX. It is 90% oil at last quoted rate of 340 bowls (and rising when testing was ceased).
The current make up is 72% gas and they only receive about $6 boe equivalent for the gas.
WBE Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
