Was in touch with the company today, no one knew anything about any broker presentations so grateful for some explanation of that one 1bp. PSA's estimate of 25 bcf of reserves at West Cameron are 3P, proven, probable and possible whereas likely independent experts report which will be in the annual report will be 2p and therefore less. Market may not like that. But confirmation of massive cash flow in March quarter likely to compensate. Final report should be presented to ASX by the end of this week. The rule of thumb average however for GOM gas fields is 8-12 bcf recoverable so no fear of West Cameron running out in 12 months. All the more so if two upcoming wells are successful. Little sign of a decline in pressure at West Cameron thus far which apparently has been another pleasant surprise. If pressure continues to hold wells planned for June may be put back. Company is targeting gas at Vermilion and may seek a partner to develop prospects in the GOM range of 8-12 bcf. Didn't say how many prospects being targetted. But PSA will need to build its own platforms if exploration is successful thus a bigger project than West Cameron. PSA confirmed that it did not have to put out a quarterly cash flow report though the rationale for that escaped me. Hope that is of some interest. Cheers JBC
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Held
