musings on the agm, page-43

Stefoid,

Outside the NOCs and the Supermajors you'd be hard pressed to find many companies with long reserves life in light sweet crude. The nature of the beast is that you discover, then deplete as quick as you can, then hopefully find more. PPP not unique in that. That is why a NPV approach although not perfect is more appropriate than a PE valuation.

PPP's problem is the market is wary of what will happen with the cash, it is not viewed as being safe in PPP's hands. That is also why I will not buy more atm. I'd prefer see Dargie's capital management views adopted by management, but might be more extreme, and prefer the bare minimuim cash retained for future CAPEX in current JVs only. Why does anyone want to see a big PPP? I'd settle for reaping the rewards of some very attractive current assets, and letting the company shrink, and dare I say it maybe even die when the Tui area is exhausted, meanwhile having passed something like 50 to 100 cps to shareholders.

EL