gone to sleep....

PSA has been awfully quiet over recent weeks, range trading on miniscule volume between 1.20 and 1.30.

The traders seem to have deserted the stock for better pickings elsewhere (what a day Biota had yesterday!!!) and loyal supporters are just happy to hold on the expectation of more good news.

And they won't have long to wait. PSA should be about to awaken as we near the start of the long awaited China drilling. The lack of media coverage of this program is surprising, given the huge potential numbers involved (several tens of millions of barrels recoverable in the first well), the hugely growing Chinese demand for energy and the prospect of other China deals for the joint venture partners.

But then the whole energy situation, including why oil prices are at such high levels doesn't seem to rate a mention in the mainstream media. Very curious!


PSA is also readying its annual report announcement due out early March.

This should show what a great recovery year Petsec had in 2003. I am hoping the company will announce a record profit of around A$22 million. The last time it achieved figures like this was 1996 when the share price was close to $7.00.

In March too it is possible PSA will be added to the ASX 200 which should also prompt some attention to the stock.

Henry Hub natural gas prices have not experienced the massive spike of last northern winter which gave Petsec such a dream start to its West Cameron production.

But with prices holding above $5.00 and not likely to drop much this year PSA free cashflows should be pretty stable at around A$3.0 million a month until Vermilion comes on stream when they should rise to about A$5-6 million a month. And this with the aussie dollar at near 80 cents US

So PSA 's 2004 profits should comfortably exceed those of 2003 and we could see an initial dividend paid in 2005.

So the outlook for Petsec is excellent in my opinion and the lack of current interest represents a great buying opportunity. I doubt this window of opportunity is going to last.