Petsec like any small upstream e&p company have limited captial - the issue for management is how best to use it. TF didnt say MP 18 was uneconomic, or that they wouldnt find more oil in the surrounding leases, he basically said they now had better places to deploy capital. They are looking at drilling up to a gross 31 million barrels in the gom as part of the focus leases ( main pass 256 /257 and vk 740), depending on rig availabilty. Psa interest post pay out is around 30%. Do the sums. Obviously it all comes down to drilling success or lack of it - " the rotary lie detector " as I read at some point on a different hc thread. All in all theres still the chance of a very big story in this company, and a managing director who stakes a multi million fortune in the company.
I hold - I'm probably biased - you can tell from my nic.
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Held
