PSA 0.00% 2.1¢ petsec energy limited

just a great story

  1. 1,317 Posts.
    Assuming that PSA’s July revenues where pretty similar to June, PSA is now back where it started in January 2002 with a $21 million cash balance. The difference is that it now also has an interest in no less than 7 producing wells in the GOM. PSA drilled three of those wells at West Cameron, Llogg the other four at Ship Shoal. So in addition to replenishing the bank balance, PSA has assured revenues of around $A 3 million a month for at least the next twelve months. And that is before any more drilling!

    PSA is about to drill 6 wells, all are on leases where gas or oil or both have ALREADY been discovered and/or exploited. You can’t say these are wild cats, more like development or appraisal wells. Of course anything can happen in the oil patch as we all know but if there are any 6 wells with a better chance of success than those Petsec is about to drill I would love to know about them. I am holding my PSA though the entire drilling program.

    PSA has gone back to the strategy that worked so well for it in the early to mid nineties, drilling low risk small prospects. Difference now is that the gas price is more than double so the rewards are huge for a small oiler. Picking up the scraps that the majors have left behind is proving to be really great business. Now if only PSA could get its hand on the prolific producer but now declining fields in Vermilion 245 currently owned by Chevron. Wouldn’t be surprised if Terry Fern was trying.

    PSA has a relatively small number of shares on issue of which the top 20 shareholders account for some 65 per cent and 13 percent are held in the USA in ADRs . And it has no debt (cf Novus which owes $A154 million!!!).
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