A better than anticipated discovery at Main Pass should now help remove the uncertainty about reserves, the one issue overhanginhg the Petsec market.
It also now brings into focus the additional Main Pass leases that Petsec was the highest bidder on at the last MMS auction. Today's news makes them look even more attractive.
Looks too like they have gone back to conventional drilling of the Main Pass wells and dispensed with the monobores for the time being.
We could have Main Pass in production by Q4 which will almost certainly mean a A$40 million profit this year or more.
And with gas prices holding up well throught the shoulder season a noraml or above normal summer could see some double digit gas prices.
Just wish Petsec would get up to a price where it becomes unattractive for the short term traders.
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
