freefall, page-9

I am still puzzled, however having read various comments here and elsewhere three issues seem to predominate:

1)Reserves & prodn growth. The unexplained difference between PSA and external reserves reports for GOM, plus the difficulty of translated declared reserves into production. A huge amount of skeptism has obviously been created. The official PSA story is not holding together well.
2)Profitability. Not living up to promise. Always more one-offs. We've repeatedly heard the low F&D costs, the low GG&A, but it doesn"t quite translate to bottom line.
3)continuing overhang from the placement. Seems to me that a significant number of the placees would not be overly keen on a longterm position, and with the price slide and the gremlins out with the QR & FYR offloading into the ultrathin PSA market is inevitable going to be painful.

My position, having watched PSA slip from no.1 to no.6 in my portfolio (constant shares basis) is not to sell, due to point 3, and not to buy more until I am better satisfed wrt point 1.

EL