Pretty decent news if it means what i think it can mean. I've seen a few recent transactions at greater than $4000 per acre based on the Haynesville ( to the SW on the Tx / La state line) . If you run the sums on what PYM hold ( disclosed on their website under projects) - 440 net acres x 4,000 = $US1.76mm. The Cotton Valley/Hosston and East Haynesville have been adding value in the last 12 months or so after they were effectively deserted when Chesapeake bailed the play in 2008-9. In reality the sale could reap more than the $6000 per acre but that's pure speculation and only based on what I've been seeing further south in Sabine Parish. Hunt sold out of their Hosston/CV play earlier this year but I've never seen an actual acreage number put on that transaction, only the combined value for their production plus acreage. Either way, if its a solid outright sale you have just taken the "cum raising" ( no need to raise money, no cap on the stock price ) status out of the stock.
If results are good from at least one of three wells due for completion now and they move into a more development style phase.....they don't need to come back to market for capital. Now is the time you have to start looking at the comp in the view of a potentially fully funded developer. the revenue kick from the three wells drilled should kick in in time for this.
PYM Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
