1. Most Discussed
  2. Gainers & Losers
PSA 13.5¢

strong outlook for this gas producer

  1. jocam9

    1,317 Posts.

    Amazing where Graham gets his ideas from but refreshing I suppose that we do have some PSA doubters even though the stock is up 500% in 12 months!!!

    I don't expect to hear from PSA how important the recent Vermilion acquisitions are until the MMS confirms their bids after doing a "public good " analysis. This can take up to six weeks so hopefully we will get an explanation at the AGM in May.

    Looks to me like the Vermilion play is going to be very profitable and will involve more prospects on the newly acquired leases. Otherwise why spend A$18 million drilling the two wells and building a production platform.

    Although delays in China drilling are diappointing it does allow more cash to build up in the bank at a time when production at West Cameron is probably down now to 12-13 mmcf a day net.

    I don't know that for sure as the company won't give out figures until its quarterly activities report due at the end of April. But I would have expected natural decline to have impacted on production rates in this March quarter. The June quarter will be even less productive as they will be doing some recompletions over the next couple of months.

    But the second half should be a real bonanza with Vermilion in production as well as the next sands at West Cameron. Gas prices should stay up this year as they did last year given weakness in supply situation and continuing strong demand.

    PSA had better than 20 cents eps in 2003, look for that to be better than 30 cents in 2004. I don't know when the analyst community is going to wake up to these figures but when it does there will be another rerating. The ASX will certainly move PSA Graham, but not in the direction you are expecting.

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top

Thank you for visiting HotCopper

We have detected that you are running ad blocking software.


HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.