Worthington Energy (OTC: WGAS) has had a tough year. In the week before last Christmas, the stock rose to $0.08 for the first time in over a half a year. Not unlike millions of Christmas gifts, the stock was then returned. In the case of Worthington Energy, this meant a return $0.045. All was not lost as it nearly returned to $0.08 in mid-February following two weeks of post Groundhog Day excitement.
Since this February excitement, or Groundhog Day giddiness, Worthington has done nothing but drop. It has rarely traded over $0.01 since June. Today, Worthington Energy gained over 29%. Post Labor Day lift? Was Worthington Energy’s stock price saved by another holiday?
More likely it was Worthington’s announcement yesterday that its I-1 well has finally begun production.
On August 30, 2012, Worthington President and CEO, Tony Mason, announced that the I-1 well, located in the shallow waters of the Gulf of Mexico near Kleberg County, Texas, had finally tied into the Six Pigs Processing Facility’s main offshore pipeline. He then intimated that this shouldn’t get you too excited straight away when he said, “Now open for initial flow, we expect that it will take approximately one week for the pipeline to fully charge, resulting in gas and condensate flow reaching the onshore processing facility.” Mr. Mason continued, “As I have previously stated, initial flow rates from the I-1 well are anticipated to be low while the well cleans up from the various materials that were used in the drilling process. The well clean-up process should take between 45 and 60 days, resulting in significant production beginning in the late October or early November timeframe. Please visit our website, www.wenergyinc.com, for pictures of our progress.”
Well, that week has arrived and the stock soared today when the company announced that this “charging time” has now passed and flow has begun. Now one expects that the executives of San Francisco-based Worthington are secretly wishing the rest of the United States to be inundated by record cold, snow and blizzards as they look for the I-1 well to really begin to produce to capacity as Autumn gives way to Winter.
Hundreds of gas and oil exploration companies were hurt last year when Wisconsinites were seen taking to the golf course in late January as the United States enjoyed one of its most moderate winters in recent memory.
This writer is by no means an authority on gas production, and will once again defer to CEO, Tony Mason, “Overall, I am very satisfied with the way that the well is performing. It has conformed to the pattern that we had anticipated,” continued Mr. Mason. “We will continue on with day-time operations, under supervision, and I anticipate that probably towards the end of this week we will turn the well on for a complete 24 hour operation cycle. As the well progresses, we will, of course, inform the market on a timely basis. Please exercise patience as the well cleans up and purges the LCMs over the next few weeks, and be sure to visit our website, www.wenergyinc.com, for additional updates and information on our progress.”
He truly loves driving traffic to the company’s website. Quite simply, this well and its production will have great significance on Worthington’s stock price. Checking its website regularly may allow you to see some real gains if you stay abreast of the I-1’s progress.