Bad audio was a bit of a problem but from what I could hear of this morning's presentation at the Louisiana Energy Conference it was pretty much along the lines of the broker presentation released recently.
Couple of new things were that the new Vermilion wells will increase production by 50% according to Keogh whereas we had been told in other reports that production would double to 40 mmcf a day in December. Maybe the latter figure takes into account production from those onshore wells.
And still no mention of those well results though at least now we know they are worth 5-8 Bcf net to PSA if all goes well.
Main Pass most likely delayed to January due to rig commitments on current contract. That doesn't surprise me, seems to be a feature of the industry.
Didn't realise that Petsec had problems with a recompletion on the #18 well at West Cameron, appears they left 0.5 of a Bcf in the ground because of mechanical difficulties. Wouldn't hurt to tell people these things at the time.
Company clearly got some bids in preparation for the next lease auction.
For a company that BBY expects to make what, $45 million next year, and over $60 million in 2006, year there sure ain't much interest inthe market. Legacy of the past I suppose.
Just have to wait for the rerating. It will come eventually.
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Held
