Worthington Energy, Inc. (fka WGASQ)

[xZx]

i definitely think we're going above .15 on news of the funding of the $8.5M loan.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=84348104

WGAS has two other projects, besides VM-179, listed on their website as "in progress" and "final stages"

http://wenergyinc.com/investor-relations/current-assets/

they are "d-bar" and "south texas". see below.

imo not only will we soon hear that we've got the $8.5M for VM, but we could also hear about either of these other land-based deals getting done.

what's the profit potential like for VM?

to make the math easy, we'll assume we give up half of the oil to a partner.

if we hit the flow rates anticipated, which could be as high as 2,500 boepd, then that's 1,250 X $95.76/barrel = $120K per day, $43.8M per year, for revenues. again, to make it simple, let's take a full 50% of that and toss it out. this accounts for inactive days, and various expenses. the "costs of production".

so that means if we just got half of VM-179, and then only kept half of those already discounted revenues, we'd still have about $22M a year in net profit.

let's say the OS, which is now 96M goes up to 150M. here's how the earnings per share would shake out:

22/150 = approx .15 per share EPS.

if we value ourselves with our peers, most companies like this trade at a 15 pe ratio, so .15 X 15 gives you a target pps of $2.25 a share.

now, remember the other deals? let's say we can get 400 boepd out of d-bar and south texas combined in the first year of reworking wells. this seems pretty conservative to me.

that's another $38,000 per day. about $14M per year. take out half. $7M per year, net profit. 7/150 = .05 eps... X 15 pe ratio = .75 per share.

so adding up the $2.25 and the $0.75 gives us $3 per share for VM, d-bar and south texas. this is only after the first year. production from the land-based leases should continue going up, maybe as much as 1,000 boepd from just d-bar alone, but that will take longer than a year to produce.

the wild card -- what else do we have cooking besides these three deals?

for now, i'd say a $3 target is good enough for me. that's a 100 bagger from here. jmho. everyone should do their own calcs. let's compare!