$3.5 to 4 million to be spent in plugging Chandeleur 31/32
$2mn impairment also to be recorded
Around $5.3 million is secured against a kind of debt I guess (as a kind of non-useable cash)
Shale Oil Projects – Alberta(Canada) – Not economical as per PSA management (at $100 crude oil price??? They might require $170 a barrel)
Main Pass 270 was supposed to be restarted in Oct (which supposedly had to give boost in production for Dec ending qtr) Price of Gas has risen around 25-30% since then and PSA yet again missed the opportunity to encash it.
Acquisition was supposed to have a price tag of $100m (as per spt report) now dropped down to $70m.
Direction is missing in PSA’s case. I have been great supporter of PSA and ever wanted to get in at these prices. But it make no sense to me as even if the Gas and Oil price go through the roof in next couple of years. PSA will miss the boat and probably acquire asset/lease at a much expensive price(might not be very economical).
Ever booming industry, I feel sad PSA Lacking potential and missing the spark. There are better companies out there priced correctly and with a lot of potential.
Again..its only my opinion only No advise!
PSA Price at posting:
8.5¢ Sentiment: ST Sell Disclosure: Not Held
