PSA 0.00% 2.1¢ petsec energy limited

market disinterest curious...

  1. 1,317 Posts.

    I know one shouldn't take much notice of day to day price and volume fluctuations in stocks you hold for the longer term but the lack of current interest in Petsec is curious. Here is a company that has just announced a $16 million half year profit, has drilled one out of two successful wells on its West Cameron leases and will most likely have a third up by the end of next week, yet today its share price dropped by 5 cents or nearly 7%. Go figure.
    Compare what happened to Amity today when it announced a $10 million capital raising, an event which would normally set some alarm bells ringing. The company obviously can't fund its on going exploration program from cash flow. But scarcely a ripple in today's trading. The announcement was accompanied by two upbeat media releases on production from Gocerler and the prospects for bringing in some new wells. AYO must be the most hyped oiler on the boards, so much so that it hard to get a clear picture of its fundamentals. Looking forward to Amity's presentation at the Good Oil Conference in Perth next week.
    Been thinking if there might at some stage be a takeover offer for Petsec. Came to the conclusion that if there was it would probably come from PSA's partner in China, ROC Oil who probably has a better idea of the true value of PSA than most. The two Sydney based companies are close. But any bid would have to be a friendly one given PSA's CEO Terry Fern's 25% holding in the company. I would think that a t/o bid would have to be pitched at over a dollar if anyone wanted to get hold of PSA's assets before Vermilion and China are drilled.
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