Last Quarter Financials(Ending September 30th, 2020)
ASSETS Cash: $415,873 - $0.013 per share equivalent Receivables: $77,296 Prepaid Expenses: $13,556 Oil and Gas Properties: $3,819,082 Office Equipment: $811 Total Assets: $4,326,618
LIABILTIES Payables: $1,161,801 Related To Parties: $214,157 Convertible Loan: $693,821 Current Portion Of Decommissioning: $125,793 Non-Current Decommissioning Provision: $1,871,647 (Payable once all wells are done producing) Total Liabilities: $4,067,219
2020 51-101 Reserve Report (Released September 2020) Total Barrels Proved: 215,000 Total Barrels Probable: 148,500 Total P + P: 363,500 Net Present Value In $USD: $6,489,200
Speaking with Wescan, the company will be closing it’s $0.05 cent private placement shortly and they will be working on recompleting some shut in wells. At the same time, they worked over 6 wells last quarter, which revenue’s should show on the Q4 results. Oil prices have gone up almost 30% since the average sell price of last quarter. The company only lost $115k in total for Q3 and that was with lower oil pricing and less oil being produce from workovers being done. Wescan is planning to use the pp money to reactivate several wells and then later this year, drill 3 new wells which could increase total production substantially.
MD&A Highlights
DESCRIPTION OF BUSINESS
WesCan is an evolving exploration and production company with a key objective of providing its shareholders with attractive, long term sustainability by developing and exploiting the Company’s assets at east-central, Alberta in a financially disciplined manner and by acquiring and consolidating additional oil and gas assets that are analogous to its infrastructure and focus area(s). WesCan’s assets are comprised of 100% operated, oil-weighted properties characterized by multi-zone oil reservoirs with low declines that include a number of low risk, multi-lateral horizontal development drilling locations. WesCan continues to pursue and evaluate strategic acquisitions with synergistic characteristics of long life producing assets and opportunities with low risk, upside potential.
Oil and NGL production decreased 64% from 149 BBL/D in the six months ended September 30, 2019 to 54 BBL/D in the six months ended September 30, 2020. The decrease is a result of a combination of a decrease in commodities prices, routine field maintenance and workovers of six wells during the period. Associated natural gas production decreased 67% from 263 MCF/D in 2019 to 87 MCF/D in 2020. Oil and NGL production as a percentage of total production was 79% in 2020 IFRS rules require that the cost to re-enter or workover existing wells are to be expensed and not capitalized into property plant and equipment. During the six months ended September 30, 2020, the Company expended $50,500 working over six wells (2019 - $91,500) on its core property. The decrease in revenue from the prior quarter resulted in the percentage of operating expenses to revenues to move from 67% to 79% during the current period.
OUTLOOK
Management continues to focus its attention on the future development and exploitation of our core property and is confident that the underlying reserves will capture the future growth potential of the property. With the on-going focus of identifying low cost optimization projects and the re-activation of shut-in wells, such efforts should continue to increase the Company’s cashflow while providing attractive payouts and return on capital.
In addition, Management is currently reviewing the geological and reservoir engineering evaluations for a number of new development drilling opportunities that exist on the Company’s property. While the Company continues to further examine the overall potential of the project, management remains perceptive and vigilant of the international markets and the domestic commodity pricing environment. Such influences continue to be prudently reviewed and evaluated prior to any significant capital expenditure with the objective of preserving our reserves and obtaining more favorable pricing for our resources.
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posted
Wescan will be picking up momentum pretty quick here as the company is starting to grow again. WTI hit $66 today and their production costs over the last several quarters range from $29-36 per barrel. So almost doubling at the moment.
WCE oil and gas reserves are nearly half a million barrels as well, mostly light oil. With workovers being done, a $200K placement at 5 cents ready to close and positive cash flow building, stock is looking good. Tight float of only 31.4 million shares and because it's coming off a multi year low, investors realize that most older shareholders in Wescan have higher costs. There's also some drilling locations which could be a game changer for the company.
posted
Wescan Energy closes $200,000 private placement
2021-03-15 12:10 MT - News Release
Mr. Greg Busby reports
WESCAN ENERGY ANNOUNCES CLOSING OF PRIVATE PLACEMENT
Wescan Energy Corp. has closed it previously announced non-brokered private placement of 4,000,000 common shares of the Corporation ("Common Shares") at a subscription price of $0.05 per Common Share for gross proceeds of $200,000 (the "Offering"). The Common Shares are subject to a four month hold from the date of issuance, expiring July 16, 2021. No commissions or finders fees were paid pursuant to the Offering.
Proceeds from the Offering will be used for the further development and workovers of certain wells located at the Company's core area in Provost, Alberta and general working capital purposes. The Company will also be reviewing well optimization projects including pipeline integrity schemes to provide additional production from certain wells that require workovers. The Offering is considered to be a "related party transaction" pursuant to Multilateral Instrument 61-101 as several insiders will be subscribing for shares pursuant to the Offering, but the Company is availing itself of the exemptions from obtaining a formal valuation and obtaining "majority of the minority" approval due to the exemptions available in Sections 5.5(a) and 5.7(1)(a) of said instrument. In addition, one of the subscribers will hold over 20% of the issued and outstanding Common Shares following the closing of the Offering but will not be a "control person" as such term is defined in the policies of the TSX Venture Exchange as there are several other large block shareholders of the Company and this shareholder is not part of management and has no special or superior rights over other shareholders.
We seek Safe Harbor.
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posted
Just a quick history lesson here. In 2015, Leo Berezan (WCE's largest shareholder) sold the current producing property to WesCan for shares. Over the past 6 years, Leo has continued to increase his position in WCE, the largest increase just happened now. It's very likely that Leo knows the full potential of the property since he was the prior owner. Seeing him buying stock before the workovers and potentially a drill program is as good as it gets in terms of where things are headed. Company production costs range from $29-36 a barrel, as per the last 6 quarters. So to double the production and get $60+ for your oil, it's obvious to see that the company is making good money right now.
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posted
Wescan Energy grants options to buy 2.8 million shares
2021-09-29 12:55 ET - News Release
Mr. Greg Busby reports
WESCAN ENERGY GRANTS STOCK OPTIONS
Wescan Energy Corp.'s board of directors has approved the issuance of stock options to purchase 2.8 million common shares of the corporation at a price of six cents per share, exercisable until Sept. 29, 2026. The options vest immediately and are being issued to directors, officers and consultants of the corporation in accordance with the corporation's stock option plan. The stock options (and common shares issuable thereunder) are subject to a four-month-plus-one-day hold period, expiring Jan. 30, 2022, in accordance with the policies of the TSX Venture Exchange. These stock options grants remain subject to receipt of final approval from the TSX-V.
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posted
Wescan to settle $98,930 debt with 988,300 shares
2021-11-01 14:58 ET - News Release
Mr. Greg Busby reports
WESCAN ENERGY ENTERS INTO DEBT SETTLEMENT AGREEMENTS
Wescan Energy Corp. has entered into debt settlement agreements to settle payables with various trade creditors through the issuance of an aggregate of 988,300 common shares in the capital of the company at a deemed price of 10 cents per share, which will reduce the company's accounts payable and net debt by $98,830. The common shares issued under this transaction will be subject to a four-month hold period from the date of issuance in accordance with applicable securities laws. The transactions contemplated under the debt settlement agreements are subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including that of the TSX Venture Exchange.
The company further advises of a correction to the amount stock options granted in a previous news release dated Sept. 29, 2021. The total amount of stock options approved for issuance should have read 2.75 million common shares as opposed to 2.8 million stock options made available to purchase.
We seek Safe Harbor.
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posted
Wescan Energy arranges $1-million financing
2022-02-15 15:10 ET - News Release
Mr. Greg Busby reports
WESCAN ENERGY ANNOUNCES FINANCING FOR DEVELOPMENT DRILLING PROGRAM
Wescan Energy Corp. has arranged a financing of up to $1-million, consisting of a combination of common shares in the capital of the corporation at a subscription price of 10 cents per common share in conjunction with the issuance of debt, with the terms of such debt being subject to negotiation and settlement on the material commercial terms of same. The company expects to raise an equal proportion of the debt and equity (50 per cent debt and 50 per cent equity), however, the company may alter such proportion at its discretion subject to the demand of the offering and current market conditions.
The common shares issued under the offering will be subject to a four-month-plus-one-day hold period from the date of closing. Closing of the offering and the terms of the offering, including the commercial terms of any debt that is issued, are subject to the acceptance and approval of the TSX Venture Exchange. Proceeds from the offering will be used primarily for the drilling of a new development well located in the company's core area at Provost, Alta., and general working capital purposes. The company will also be reviewing production optimization schemes including pipeline enhancements and overall field operational efficiencies at the company's wholly owned facilities in anticipation of an increase in production from the results both existing well repairs and in the event of the successful drilling and completion of the new well.
We seek Safe Harbor.
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posted
Wescan Energy Corp (Technical Analysis) - https://www.barchart.com/stocks/quotes/WCE.VN/opinion 100% BUY - Overall Average Signal calculated from all 13 indicators. Signal Strength is a long-term measurement of the historical strength of the Signal, while Signal Direction is a short-term (3-Day) measurement of the movement of the Signal. Barchart Opinion INDICATOR Opinion Strength & Direction Composite Indicator TrendSpotter BUY Short Term Indicators 20 Day Moving Average BUY 20 - 50 Day MACD Oscillator BUY 20 - 100 Day MACD Oscillator BUY 20 - 200 Day MACD Oscillator BUY 20 - Day Average Volume: 66,154 Average: 100% BUY Medium Term Indicators 50 Day Moving Average BUY 50 - 100 Day MACD Oscillator BUY 50 - 150 Day MACD Oscillator BUY 50 - 200 Day MACD Oscillator BUY 50 - Day Average Volume: 77,406 Average: 100% BUY Long Term Indicators 100 Day Moving Average BUY 150 Day Moving Average BUY 200 Day Moving Average BUY 100 - 200 Day MACD Oscillator BUY 100 - Day Average Volume: 61,067 Average: 100% BUY
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posted
Wescan Energy hit an 8 year high yesterday as technical and fundamental indicators show that this company has tremendous opportunity right now:
- Current production of 56boed with several workover projects that could easily triple this number
- 2021 oil/gas reserve report (51-101) showing just under 400,000 barrels. This was valued at $7.3 million USD when WTI pricing was $60 and Natural gas was $2.50. Today it's nearly double for both energy commodities.
- Shares for debt issued at 10 cents completed last month, still keeping the total float at 36.5 million shares.
- Recently announced $1 million placement that's half equity/debt, which will be used to drill a shallow horizontal well in an area, where neighbouring lease owners have had nearly 100% success rates on dozens of wells. Production ranging from 250-350bopd. Wescan has enough acreage to drill up to 4 of these wells
- $5 million worth of infrastructure that can handle a much larger capacity project. Wescan purchased this asset out of bankruptcy in 2015 for $1.3 million and the prior owner was aware that the lease had more upside beyond a couple dozen vertical wells. This is why such an investment was made for a larger facility to process the oil and gas.
- Heavy insider ownership and financial support. See insider buying.
- Website is terribly outdated, but this is an operation to drill and prove up the asset, then sell it.
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posted
Just some background on Greg Busby, the CEO of WesCan Energy. He has already built and sold companies in the Provost area of Alberta, along with experience in other companies:
Most recently, Mr. Busby was the president and CEO of CanRock Energy Corp., a junior public oil & gas company he co-founded and grew from zero production to approximately 500 boe/d. in the Provost area of east-central, Alberta. Prior thereto, Mr. Busby was president & CEO of Sable Energy Ltd. and Sable Energy (UK) Ltd., a private international North Sea focused E&P company. Mr. Busby was the former president, CEO, Interim CFO and director of Tuscany Energy Ltd. a Calgary-based public oil and gas company. He was instrumental in the restructuring and refinancing of the company that provided exponential growth in production and record earnings during his tenure. Mr. Busby is an active member of the Canadian Association of Petroleum Landmen (CAPL) and is a graduate (BA) of the University of Calgary.
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posted
Wescan Energy nears completion of $1-million financing
2022-03-21 18:36 ET - News Release
Mr. Greg Busby reports
WESCAN ENERGY ANNOUNCES FINANCING
Further to the previously issued press release dated Feb. 15, 2022, Wescan Energy Corp. is close to concluding the previously announced financing of up to $1-million, consisting of a combination of common shares in the capital of the corporation at a subscription price of 10 cents per common share and the entering into of a loan transaction, with the terms of such loan being subject to the negotiation and settlement on the material commercial terms of same. It is expected that the mixture of equity and debt being issued will be roughly the same and that the offering will close on or about the end of the month.
The common shares issued under the offering will be subject to a four-month-plus-one-day hold period from the date of closing. Closing of the offering and the terms of the offering, including the commercial terms of any loan that is entered into, are subject to the acceptance and approval of the TSX Venture Exchange. Proceeds from the offering will be used primarily for the drilling of a new development well located in the company's core area at Provost, Alta., and general working capital purposes. The company will also be reviewing production optimization schemes, including pipeline enhancements and overall field operational efficiencies, at the company's wholly owned facilities in anticipation of an increase in production from the results of both existing well repairs and in the event of the successful drilling and completion of the new well.
We seek Safe Harbor.
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posted
Wescan Energy closes $500,000 private placement
2022-03-31 18:18 ET - News Release
Mr. Greg Busby reports
WESCAN ENERGY ANNOUNCES CLOSING OF PRIVATE PLACEMENT
Wescan Energy Corp. has closed its previously announced non-brokered private placement of common shares in the capital of the corporation at a subscription price of 10 cents per common share for gross proceeds of $500,000. The previously announced loan transaction continues to be negotiated with the counterparty in an effort to find mutually acceptable commercial terms on the settlement of same.
The common shares are subject to a four-month-and-a-day hold period from the date of issuance, expiring on Aug. 1, 2022. No commissions or finders' fees were paid pursuant to the offering.
Proceeds from the offering will be used primarily for the company's drilling program of a new development well located in the company's core area at Provost, Alta., and general working capital purposes. The company is pleased to further announce that it has also commenced the preliminary groundwork including permission for surveying, land acquisition(s) and other field related services in preparation of the new well.
In addition, Wescan will also be reviewing production optimization schemes including pipeline enhancements and overall field operational efficiencies at the company's wholly owned facilities in anticipation of an increase in overall production from the results of certain well repairs that have now begun and in the event of the successful drilling and completion of the new well.
We seek Safe Harbor.
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posted
White Tundra is a new investment fund that's dedicated to Oil & Gas. Most of their investments are in large/mid tier oil producers. To have them part of WesCan Energy shows that the upside is tremendous in comparison to the current market cap.
WESCAN ENERGY ANNOUNCES LOAN TRANSACTION AND OPERATIONS UPDATE
Wescan Energy Corp., further to its previous press release, has now entered into an agreement for a loan transaction providing for an additional infusion of capital in the amount of $500,000 to further assist with its upcoming drilling program at Provost, Alta. The loan is from a company controlled by a major shareholder of the company, who is an insider by virtue of owning greater than 10% of the issued and outstanding shares of the Company. The commercial terms of the Loan has been set at an interest rate based on the current prime rate plus 5.80% per annum (0.75% per month) until the Loan is fully repaid. The Loan will be repaid from the expected revenue from the spud date of the new well at Provost, with fifty percent (50%) of the revenue being used for the purposes of repaying the Loan. The Loan is unsecured and matures one year from the date that the loan agreement was entered into. Finalization of the Loan is subject to approval of the TSX Venture Exchange.
The Company is pleased to further announce that it has made significant progress with the preliminary groundwork including surveying and construction of the drilling location, land acquisition(s) and the securing of a purchase order for both the surface and intermediate casing for the well. Ongoing discussions with all other field related services in preparation of the new well have commenced and are being negotiated and finalized.
Furthermore, as previously stated in the Company's press release on March 31, 2022, WesCan stated that is was proceeding with a series of well repairs at Provost, Alberta. It was expected that the Company would repair up to 5 wells along with the available resources including rig availability, however, as a result of the overall costs being lower than originally budgeted for, 3 additional wells were repaired (8 gross wells) within the time period and successfully completed shortly after county road bans were lifted. As a result, the workovers have added approximately 67 barrels of oil per day increasing gross production to approximately 85-90 bbls/day. There are 2 additional wells that require flowline repairs that have been deferred for an extended period of time due to previously low commodity prices. The Company now expects to proceed with these repairs during the summer months providing more favorable ground conditions to conduct such operations. Further updates will be announced in due course.
Once again, WesCan will also be reviewing production optimization schemes and overall field operational efficiencies at the Company's wholly owned facilities as a result of the recent increase in overall production and in the event of the successful drilling and completion of the new well.
We seek Safe Harbor.
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