A little bit more info to pass on. There has been gas production on the Main Pass 19 lease before but don’t know by who or how much. Looks like PSA will again be chasing stuff left over by others and looking for its usual 5-10 bcf. targets. The fact that there has been production from the lease before reduces the exploration risk.
Additionally the area is known for its stacked sands so that is a bonus. If you can’t get a hit in one sand the chances are that the gas will be in others. The wells on 104 hit stacked sands, as many as seven in one well. There is plenty of infrastructure in the area so development costs would be low and time to production for a successful hit would be short.
The market either doesn’t appreciate the importance of this acquisition or if it does it just doesn’t care. If OMR is right and all the selling is coming from the one broker ie’ Austock then presumably it is on behalf of someone who got some shares in the float and for whatever reason now wants to cash in his/her profits. Ope they haven’t got too many more to offload I’ve run out of cash!!!!
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Held
