With recent compulsory acquisition of Peak Oil and Gas Limited....

With recent compulsory acquisition of Peak Oil and Gas Limited. Tht means the combine net positive cash flow is now reality by end of this year. Excluding the kakashu Uranium project, the recent oil price rise has effectively increase the NPV and Cadlao significantly, 100% IRR. No brainer. I have churn all WCU money into this. Sure a banger. When i first bought WCU at 8 cents, its unloved, b4 their first uranium miling to Denison, now is worth 24 cents in less than 4 months n become a TO target.

Also, 80 mil positive cash flow for the first year production starting Dec quarter this year.

Cadlao Redevelopment Project
Located in the Palawan basin in the Philippines, production is being targeted for the December quarter of 2011. Peak is earning a 50% interest in Service Contract 6 (Cadlao) with the Philippines government (SC6 Cadlao). Gaffney, Cline & Associates has estimated gross field 2P reserves of 6.05 mmbbl and an expectation of an average gross field production rate of over 11,400 bopd for the first six months of production.
As stated in the GCA Report, Peak?s net interest in the Cadlao Redevelopment Project has a net present value of approximately US$74 million on a ?Proved plus Probable? basis using a 12.5% discount rate.

The Cadlao Redevelopment Project is financially attractive for Peak with Gaffney, Cline & Associates having confirmed through its own independent analysis:
(i) a payback of investment capital expected within the first 3 months of the start of oil production;
(ii) positive net cash flow over $80 million to Peak in first year of production; and
(iii) an internal rate of return of more than 100%.
Peak considers the 2P project cashflows resulting from the production profile contemplated in the GCA Report to be robust, with a breakeven oil price for the Cadlao Redevelopment Project below US$45/bbl. The Cadlao Redevelopment Project has the potential to generate significantly increased returns for Peak in a higher oil price environment.