They were targeting 5-6 bcf net to PSA of gas.If their is oil it may or not be of benefit depending on size etc. Obviuosly more news needed but this looks a vg result. if they get the net 5 then about $28m cashflow.Furthermore it may well vindicate going onshore as the two prior wells were inconclusive.
with $85m cashflow this year on 15Bcf production they should have a very good post EBITDA year. we are all sick of depreciation and exploratin writeoffs that kill all profits on these oil cos but for the first time PSA now look to have the scale to make a meaningful profit.
PSA Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
