PSA (ASX) help

Originally posted by justjazz ↑

It is a sloppy and not a particularly helpful financial statement and I can't believe Fiona Robertson pepared it. It refers to nine months of production and revenues but only three months of exploration and develoment expenditure.

I suspect exploration, evaluation and development expenditure in the first half ($7.1 million) accounts for a good part of the $11 million plus admin costs ($3 million?). Miningnut follows the figures fairly closely so he might be able to add to or confirm this

I don't know why they didn't say straight out that revenues for the September quarter were well down and reflected lower prices, the higher aussie dollar, completions and drilling disruptions.

We are left to try and work out what the revenues were by comparing the half year statement with the September quarterly. In the first half they incurred obligations of $5.6 million in royalties on 2.44 bcf of production.

Production in the September quarter was 0.78 bcf so royalties for September must have ammounted to around $1.6 million so I figure September quarter revenues were closer to $7 million than $5 million but we need to confirm that with the company.

While it was still not a particularly good quarter, revenue wise, but it was a quarter in which they had two additional (small) discoveries and these have now been brought nto production so the December quarter should be better, particularly if it is a normal to cold US winter.

Petsec's future depends very much now on proving up more reserves which is hopefully what it will do at Vermilion. China will icing on the cake and reresents the "excitement" factor which can send the shares of the jv partners rocketing if drilling success is picked and run with in the press.

And given this is the first Australian group to drill for oil offshore China I suspect not only the media but the govt would jump on the bandwagon. I really do think China has the potential to put the names of all four little oilers up in lights. They are ROC (operator), PSA FAR and HZN.

I hold PSA and FAR