AFR had a story on page 15 today about surge in demand and price for natural gas in the United States. Article is taken from the Wall Street Journal so this is not an ill informed beat up. So what do we see today with Australia's premium nat gas producer in the US, my friends and yours, Petsec? A further weakening in price!! Go figure. Here we are with nat gas prices at unbelievable levels for this time of the year and looking set to go even higher. Petsec's production is about to triple when Vermilion comes on line in June/July with a good chance of another 50% increase before the year is out. The MMS has just confirmed the award of Main Pass 19 another proven gas lease in the GOM with those lovely productive stacked sands typical of the area. Drilling is scheduled for December. Is the China disappointment still hanging over the stock? Perhaps it is. Or is it the fact that at this end of the market there is a lot of ignorance about fundamentals. In my opinion Petsec is an absolute lay down misere to be $2.00 at least by the end of the year with free cash flow that most oilers would die for and a terrific management team. But I am more than happy to listen to a contrary view.
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Held
