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PSA 18.5¢

china, vermilion and those cash flows

  1. jocam9

    1,317 Posts.

    Extraordinary week for the oilers PSA and HDR make discoveries (not comparable ones of course) and the market yawns and chases after LUM and MUL and EBR and VCR.

    I understand it will take three to four weeks to complete the new wells at West Cameron, plus one completion on an old well, so all five should be up and running by the middle of October.

    As September quarter draws to a close I don't expect revenues to equal those of the June quarter. My guess is they will come in around $9-$11 million. This is due to lower prices, disruptions to production caused by the drilling program and I suspect a small decline in production rates.

    December quarter should be back up there with hopefully higher prices and better production rates, mind you current prices of around $4.50 an mcf are pretty damn good as they are and significantly better than this time last year.

    I also understand that Vemilion will be drilled in November if all goes according to plan and Terry Fern is currently in the United States to make sure it does. So Vermilion looks like coming forward a little.

    ROC is currently finalising a drilling program for China which will be put to the JV partners in early October. Approval shouldn't be a problem and drilling is scheduled for November so I guess they have already lined up a rig.

    Understand Fern is also looking at what comes next given that West Cameron drilling is complete, Vermilion is on track and ROC is looking after China. Nice to be in a position to talk about projects and prospects when you have plenty of money in the kitty. I hope they are making good use of that data base of theirs.

    Be nice if Petsec could provide a presentation of where they are at for the investor community and update their website at the same time. The latest yearly review on the site is for 2001 for chrissakes. Overdoing the self promtion is one thing ( reminds me of AYO!!!) but hiding your hat under a bushel is quite another.

    Still current quiet period for Petsec is a great buying opportunity for any one looking for an oiler with upside remeber it joins the ASX/300 next week which might spark just a bit of interest.

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