I have been retained by the company to do some Investor Relations work, the first step they have taken since taking over the company.I do a number of different companies at any given time, have an assistant in with me now, and strive to be careful on the deals I do as losing my database alot of money will do me no good on the next deal... We started December 15, 1996 and since that time have not had a stitch of information to send/fax out but have taken about 550,000 shares from the market.On Feb.12 I finally recieved from them a corporate profile which I have now started faxing out and will get printed to do an initial mailout ... I will attach it here as well. The majority of my database is oil and gas (I worked on M.L.Cass Pete MLO-TSE which finally took off from 70 cents to 5.95 in September)and WLT will come well recieved.
As far as their finances go, they currently have revenues in the $14,000/month neighborhood and some news upcoming regarding other financing activities. The principles are Dez Smith who is also on the board of A&B Geosciences and was president of Tai Enegy Res. from 1981 to 1994; and John Campbell (president)who gained industry experience with several major geophysical data acquisition companies. Mr. Campbell also founded and managed his own geophysical data acquisition company and during that time played a significant role in arranging financing in excess of $10,000,000 by way of geophysical data acquisition limited partnerships.
Here is the corporate profile:
Corporate Profile
WESTERN LOGIC RESOURCES INC
Symbol: WLT Vancouver Stock Exchange
Current Price: C$.20
1997 Price Range: C$.15 - .26
Share Structure
Authorized: 100,000,000 Common
350 Preferred
Issued: 8,217,461 Common
350 Preffered
Restricted: 3,776,283 Common
Free Trading: 4,441,178 Common
Options
Director 50,000 @ $TBA
( expiry date June 10, 2001 )
400,000 @ $TBA
( expiry date TBA )
Estimates
1996 1997 1998
Cash Flow $112,500 $1.6 million $3.4 million
Sorry for taking so long to respond (haven't checked here in that time), we should begin seeing releases within a week or so, keep an eye on it!
Mike
PRINCIPAL PROPERTIES
1. Paradox Basin
Western Logic Resources Inc. has entered into a farm out agreement with Electra Energy Corporation to drill a 15,000 foot Mississippian Test in the Paradox Basin, Montrose County, Colorado under the following terms:
i) $250,000 Can. equalization fee
ii) $650,750 Can. portion of the drilling costs to earn as follows:
PAY % BPO % APO %
Electra Energy - - 6.314
Western Logic 18.571 18.571* 9.472
Peacock - - 2.785
Total 18.571 18.571* 18.571
ú Payout includes equalization fee, drilling completion and equipping costs. Western Logic Resources Inc. will have a retained working interest in 22,000 acres in the immediate area of 9.472%.
Projected net revenue year one: $1,848,000
Projected working interest revenue Western Logic Resources Inc.: $ 348,192
2. Williston Basin, North Dakota
The company has begun leasing arrangements to secure 2,400 acres in Bottineau and Williams County in North Dakota.
Drilling depth: 4,000 feet
Reserves expected: 400,000 Bbls
Pay zone thickness: 35 feet ñ
Initial oil production expected: 65 BOPD ñ
Formation: Mississippian Midale
Expected pre-drill costs:
i) Acreage cost 2,400 acres @ $38/acre $ 91,200 U.S.
ii) Prospect fee $ 10,000 U.S.
iii) Land agent and filing fees $ 4,000 U.S.
$ 105,200 U.S.
Drilling costs:
i) Cost per well to drill $ 135,000 U.S.
ii) Completion and equipping $ 50,000 U.S.
$ 185,000 U.S.
Total cost to drill and evaluate prospect:
4 wells @ $185,000 = $740,000 U.S.
Estimated value of reserves in place undiscounted $6,000,000 U.S.
CURRENT PRODUCING PROPERTIES
1. Macoun, Saskatchewan
Wells:
Legal description Rights Working Interest Encumbrances
Twp 04, Rge 09, W2M: All P&NG to base 16.666675% 12.8% Lessor Royality
NW¬ Sec 13 Mississippian
Twp 04, Rge 09, W2M: All P&NG to base 22.2222% Crown Sliding Scale
LSD 5, 6 Sec 24 Mississippian
Twp 04, Rge 09, W2M: All P&NG to base 6.6666% GOR BPO Crown Sliding Scale
LSD 7, 8 Sec 24 Mississippian 6.6667% APO
Yearly income: $12,500
2. Tatagwa, Saskatchewan
Wells:
Legal Description Rights Working Interest Encumbrances
Twp 05, Rge 15, W2M: All P&NG 12.50% 18% Lessor Royalty
LSD 1.2 Sec 33
Yearly Income: $12,000
3. Auburndale, Alberta
Wells:
Working Interest 3.52%
Number of wells: 26
Yearly income: $48,000
Lands held: See Map
Twp 45-47, Rge 06-08, W4M
4. Seismic Surveys
The company has revenue interests in over 2,000 miles of seismic data in the following areas:
1. Boissevain and Souris River, Manitoba
2. Gull Lake, Saskatchewan
3. Stettler, Alberta
4. Chinchaga, Alberta
5. Peace River, Alberta
Yearly income, average: $100,000 Total yearly income all sources $172,000 |
