If I had a decent crystal ball I would never have sold my PSA much earlier than last August.
For the future of PSA imo you have to look at USA gas economics, they are in a marginal game in the shallow/onshore GOM, and benefited enourmously a couple for years ago when the pog soared and made previously uneconomic "leftovers" worth drilling.
Costs rose,gas prices slipped, and the easy pickings were done. Unsuprisingly in hindsight success rate fell, and DAX (which PSA mgmt appear to treat as absent) soared.
Now we are seeing USA gas prices inevitably rising further, they appear to have locked in some lower capex prospectivity and have some unhedged production/reserves, therefore they appear to me potentially leading into another sweet period.
I won't be buying though, I"ve lost faith in management, don't trust what they say on reserves, not on anything in fact. Further I no longer rate their competence or skills highly.
The current situation (oil 21 USD/GJ) does tempt me towards a decent USA gas producer though. Not sure there is an ASX based one though? Very happy with my patient overweight position in IPM, and with holdings in several other small oilers, except one dud yet to quit.
EL
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
