A tiny Bakken play that could be a 10 bagger (or a 0 bagger) in 3 years

Posted by bakkenexpert

I came across a tiny Bakken play Western Standard Energy Corp (WSEG.OB) that has a $27 million dollar market cap. This is truly the smallest publicly traded Bakken play that I have come across thus far. Western Standard has an effective 80% Working Interest and 64% Net Revenue Interest (after land owner payouts) in seven Lodgepole Reef Prospects (see map below) within the Williston Basin. In this area approximately 4 million barrels of oil has been estimated with represents almost $2 billion in reserves at $110 per barrel. The company also announced on July 14th that they acquired additional acreage in Stark County with 100% working interest with payouts due to landowner downstream. The company plans to drill a well in the 11000 feet range at a cost of $4.5 – $5 million dollars. If they are able to tap even 3-5 decent wells in the area with a rate of 600 barrels per day that could lead to a revenue stream of $100 million per year and a market cap of $300 million which equates to a share price around $3 (hence the potential 10 bagger). Please be aware that the opposite could also occur with this company not having success, not being able to get access to financing and becoming a sub penny stock (hence the 0 bagger). We are just setting aside a few thousand shares and checking this again in a year. Good Luck to all!

Below is a 3 month chart of WSEG

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Tags: bakken play lodgepole microcap oil stark county Western Standard Energy williston basin WSEG