re: dd&a expense
The quarterly looked great to me. They have made the effort to give an enthusiastic press release, which I appreciated.
The market is now informed about most of the unknowns. Admittedly the company could still do better on a few details, such as: - confirming whether the first onshore well met expectations - what was the cost overrun for putting the new V wells online?
The story for 2004 was Vermilion, which in 2005 will simply become a cash cow.
2005 we can reasonably expect the story to be Main Pass plus the 25% onshore lease.
2006 looks like the new onshore exploration area, and possibly China. Although PSA would not be the operator in China, they would have a spend in 2006 to get it off the ground and earning. The new onshore area looks exciting as a growth prospect.
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Held