this company any good?, page-14

goodaye PSI,
well I really don't know what to make of that post.
I look forward to reading your posts, here and other threads.

I have been in WCL for a while now.

a) WCL have been using inhouse tech people, but they have also used outside experts. a while back they used Haliburton to do a new type of chemical treatment on some of the wells, and got mixed results. They are now using other tech people to help design well recovery technoques. Remember the CEO comes from Santos doing a similar thing.
But you are right in saying it is trial and error.
I was told by a CEO of a C/B coy 12mths ago, that even Santos at Fairview just had to try all sorts of different techniques, until they struck the right drilling and completion technique.

the important take-away for me, is if you ask WCL board and mgt about the quality of the field, the response you will get like "there is nothing wrong with the field".
ask them if the field can produce? you will get a response like " we believe the field can produce the gas to supply the GSA..."
I place great store in the quality of the mgt and board.
they would not risk giving s/h and ASX b/s for so long-simply no point.

prod has been consistent for what 2 yrs?
of course it is below current contract level, because it is cheaper to pay the already funded liquidated damages at about $3.50/gj, than to use it now and forego near term sales at about $8/gj.

CASH
am not sure what is meant about CSG market dead since 2009. if you mean dead as in t/o?
"going thru the motions"- yep WCL lost 18mths because of the Petro t/o proposal. My understanding was that it WAS done and dusted at price of $185m. I think most s/h and board had a "motion" when Petro inexplicably pulled out for political reasons.

I think you say WCL has no money - they in fact have $26m at last Qtrly. this is sufficient to complete the current drilling program of I think 8 development wells. they do not have the funds for field development. But that is planned to be resolved upon the execution of the GSA. Importantly, WCL has alluded to a GSA with a staged ramp-up of production/sales - so funding can be staged. The board is major s/h, so they won't want to see massive dilution.

b) development of other sites- yep WCL have stated many times they have put the other permits on hold, concentrating on prod at Meridian, and pending resolution of the GSA and Meridian field dev't.

I think Tilbrook is prospective, but has not had much money spent on it.

if posters are wondering what comes next, I cannot stop thinking about Petro/Molopo and Paranui. If/when they develop Meridian and demonstrate consistent prod'n, then watch the space at Paranui next door, and Mungi next door. Paranui has deep gas resources- BG is partner and doing exploration - but again on hold. Molopo has Mungi field and other fields not far away. Petro paid $42m for mpo csg assets. they are stranded. you watch WCL and Petro do a deal at some point! I recall years ago MPO dirilled wells with 6 laterals of about 1klm each? they got initial flows of about 2mmscf? need to check. but these wells clogged up with fines! then mpo gave up, and no money has been spent to clean them up. WCL believes they are on the right track to resolve the fines issue. -- so surely that makes the mpo field a target?

if any s/h have any questions re WCL operations, I urge them to go straight to the coy, and ask the questions directly.

$185m for a coy which may announce a GSA of $1.6b+ seems a bargain to me.

cheers