West Canyon Energy Corp. (WCYO.OB)

Posted: Thu Sep 04, 2008 9:22 am

West Canyon Energy Corp. is an independent oil and gas exploration and production company that hopes to provide new and secure energy solutions for the United States. Led by a team of oil and gas veterans who have worked with Shell, BP/Amoco, and Halliburton, the company is currently involved in domestic and international projects.

West Canyon owns participation stakes in three international projects through its wholly-owned subsidiary, PetroSouth Energy Corp. The company has a 60% participation share in the Buena Vista Block Project that contains 25,000 acres of contiguous land with a potential reserve of 13.13 million barrels of oil (MMBO). The company has a 20% participation share in the Talora Block Project that contains 108,333 acres of contiguous land with 5 prospects and a combined potential reserve of 209 MMBO. Finally, the company has a 6% working interest (WI) in the Carbonera Block Project that contains 64,000 acres of land with a potential reserve of 60 billion cubic feet of natural gas (BCFG) and 17.6 million barrels of condensate.

Domestically, West Canyon signed a Letter of Intent to acquire a 100% WI and 80% net revenue interest until payout in Slope County Oil Company’s existing leases in the Spring Creek Red River Prospect in North Dakota. After payout, the company would have an 80% WI. The prospect contains 4800 acres of land with a potential reserve of 60 MMBO. Based upon a standard rate of $100 per barrel oil, West Canyon’s 80% stake would result in a $4.8 billion return.

As with most investors, West Canyon is not putting all their eggs in one basket. They are continuing to pursue shares in international projects as they develop domestic holdings. Based upon the potential of the projects at hand, West Canyon should see steady revenues once the projects transition into full production sites.