Petsec has announced its half yearly results and as expected they are way down on the same period last year. The company just managed to scrape in with an after tax profit of A$0.7 million compared to A$16.2 million last year.
Some unanswered questions with the announcement as there usually is with PSA. Company is now talking about two development wells at Vermilion 258 and nothing about Vermilion East. Bit curious.
Also don't know whether the company will still have to make dd&a provisions at the same rate for West Cameron in the second half.
Money is obviously flowing in from Vermilion though flow rates look to be at lower end of expectations ie 15 mmcfpd rather than 25 mmcfpd. Presumably the two wells foreshadowed for Sept/Oct are accelerated development wells designed to drain Vermilion West faster.
There is nothing in the report about the life of West Cameron, the company says its estimate of reserves is greater than those of Ryder Scott but no figures are given.
Second half should be OK but company obviously needs to bring some more fields into production. With no exploration drilling until December can't see what is likely to spike renewed interest in the shares.
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Held
