re: Ann: Presentation at Excellence in Oil an... I have been...

re: Ann: Presentation at Excellence in Oil an...
I have been banging on about PSA for a while now esp regarding the change of emphasis to Shale oil and their expertise within the co to handle that.
The market seems to finally awakening to this fact. However what the market does not understand, and its Psa's fault in their sparse announcements, is the residual value in the NG assets.

They have 2p reserves of 15.4Bcfe and a value of $39m. Also cash of $41m. This is before the latest development well at Marathon.8bcf is for Marathon. It is my expectation this will increase to around 10-12 Bcfe for marathon.Marathon is huge at 150-200BCF.

The pipeline is being built by Apache and others this year and should be finished around August.This is key as it will increase to around flow75MMcfe/day from the current 10MMcfe.

But what the market has not focussed on is Marathon is not just natural gas at $2.40 Mcf but gas and condensate. This increases the price to Psa towards $5 Mcfe.

Psa should get full value for their gas/condensate assets due to the condensate of Marathon.There is no enetrprise value in PSA for the shale play or salt domes etc until they reach 34c. As at today-before any further success in Marathon 3 development well-they are worth $80m on a cap of only $48m.

This is slowly,but surely sinking into the market and 34c has to be the first stop.Once we get there then we look at the shale play again and the creage put together.


Also we will get this year,having begun in Canada, 1-3 vertical wells and 1-2 horizontal wells.Psa should finsih much higher this year than its 33% discount to cash and production assets.