We will presumably know tomorrow the details of PSA's capital raising and hopefully the reasons for it.
The thought occurred to me that depending on the results of Vermilion A #1 and #2 they may well want to drill a third well there in what is currently only a two well program. After all it is in a highly prospective area.
With well cost of $US 3 million it would be nice to have the funds for such an option.
The other consideration may be bringing forward the drilling of Vermilion East currently scheduled for later in 2004.
And yet another consideration may be buying FAR out of its 5% interest in Beibu though being a FAR holder not sure I would like that.
Then again the funds might be for a project that has yet to be announced and may pleasantly surprise us all. Padre Island with Novus???
With gas prices running hot, if PSA can buy into some new leases/fields it may be able to boost cash flow. All speculation of course so bring on tomorrow!
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Held
