wcl - another pes in the making- & underpriced

WCL AGM

At the AGM the Board was very upbeat on potential of WCL permits.
Paranui and Tilbrook are in the process of running Pilot wells to obtain reserve certification.
3P reserves are hoped to come in at at least 200PJ for 3P Net to WCL. Not sure if that is just Paranui or both Paranui and Tilbrook.
A director did the maths - 200PJ (3P) @ 60c per GJ = $120m divided by 74m shares is $1.62 per share !!!!

Directors advised that WCL now has their own Schramm Drlling Rig (similar to ESG rig) - has it on long-term lease funded by Bumi on favourable terms. This rig will drill to 2klm depth. It will do everything WCL has planned.

Tilbrook has huge extension north of current pilot wells. WCL is very excited about this area. That's the Bald Hills and St martins areas within the Tilbrook permit. They estimate that there is 1 TCF of Gas-in-Place. They anticipate 50% recovery !!! I think that is 500 BCF ?

Bald Hills fairway is 25klm in length and coal structure is same as Moranbah CSG permits next door.
St Martins area is also chokkers full of coal, and is so promising that a coal mining coy is trying to get permit to extract the coal, but cannot mine coal unless WCL provides consent.

WCL plan to drill 15 wells in Paranui and 10 wells in Tilbrook during 2009. WCL has sufficient funds in place to complete that program.

WCL expect to make an announcement of reserves very early New Year.

WCL is currently in discussions with customers to monetarise the gas reserves when certified.

WCL is also looking at acquiring further CSG assets in QLD.

Looks like a big start to 2009 for WCL !!

Cheers