A couple of days ago I asked if anyone might explain the implications
of WT's latest press release. This stock was a Kaiser bottom fish
at 20 cents. On Friday it closed at 2.14. They're drilling a deep
well--three miles down.If I knew anything about oil stocks I wouldn't
be asking. I got this company through a midstream change from a
company hunting diamonds (which I know about) to an oil company
(which I don't know about). Can't complain but I'd like some idea
what the figures mean.
SI
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President of
Westfort Energy, symbol (WT-TSE), announced that the company has recently
secured four seismic lines run across Pelahatchie Field. Interpreted by third
party, independent geophysicist Wilbur Harper, of Jackson, Mississippi, the
seismic data indicates that the Norphlet structural trap actually covers
approximately 4000 acres.
w
In a report by Tierney and Associates, an independent engineering firm
based in Jackson, Mississippi, the firm assigned reserves totaling 28,561,899
gross oil reserves and 23,439 MMCF methane gas reserves to 1381 acres in the
field classified as either proved undeveloped or probable. Geological
interpretations based on Harold Karges' geology, together with the new seismic
interpretations by geophysicist Wilbur Harper indicate that oil and gas
accumulations underlie a much larger acreage than those under which lie the
proved and probable reserves, and further support previous estimates in which
geological and engineering studies indicate that the Norphlet zone contains at
least 40 million barrels of recoverable high gravity oil and 40 billion cubic
feet of saleable methane gas. In fact, Mr. Harold Karges opines that ''The
Norphlet formation in Pelahatchie Field contains the largest known
accumulation of on-shore proved undeveloped oil and gas reserves in the
southeastern United States.''
The permit for drilling of the first Norphlet well to 17,350 fed has been
received from the Mississippi State Oil and Gas Board; the well has been
staked and site preparation to accommodate the drilling operations has begun.
To someone who knows nothing about the fundamentals (the chart looks
really good. The TA I know a little about), the figures sound
exceptional. But?? |
