PSA 0.00% 2.1¢ petsec energy limited

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  1. 1,317 Posts.
    Llew as you are still following PSA you might like a bit of extra background. In 1996 PSA produced a net 2.2 milliom barrels of oil and 11.7 bcf of gas. Figures for 1997 and 1998 were respectively 3.1 mbo and 2.35 mbo and 14.8 bcf and 25.38 bcf of gas. By September 1998 they had 100% interest in 44 GOM leases and the previous year had drilled 20 wells, 16 successful, 3 unsuccessful and 1 suspended. They were spending over $A200 million a year on exploration in those heady days. The share price at one point was over $7 But they seem to have expanded too rapidly, got hit by lower oil and gas prices and tipped over the brink by Hurricane Georges in 1998. They then sold assets to Apache to reduce debt and the following year the US subsidiary went into Chapter 11 bankruptcy and PSA lost control of it until it emerged again last year following a reorganisation. Point is that PSA should be an operation much chastened by its past experience and not wanting to repeat it. I am sure they will do it better this time around. Not saying that PSA will ever get to $7 again but am pretty sure that in a year's time they will be a lot higher than what they are today.
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