Re: Wellington West Raises Target to $ 5.43 / share

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AndyK

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Re: Wellington West Raises Target to $ 5.43 / share

in response to

Wellington West Raises Target to $ 5.43 / share

G_M

posted on Oct 27, 2010 12:36PM

nice find,

5.40 is a nice price.

What i like most about the broker note is that they are now talking about 900mm barrels in place (ooip), with a recoverable of greater than 200mm barrels.

The valuations are inline with a cash flow of .06 estimated for 2011 from the early production system.

That will only get better with more wells coming on-line, with full field developement started by 2014.

The tale of the tape will of course be measured by the flow tests that Wellington has projected at 1200 bpd. The comparison to Bressay is interesting, i do not fully understand what they mean, but I am going to guess that coming results could be expected to be closer to what Bressay tested for.

If they do hit these targets I will have to consider holding longer than anticipated as the full upside could be enormous, this from a guy who thought they were pretty good right now.