share fire sale - downward trend

Folks,

The PSA share price has dropped from AUD 9.6 cents to AUD 9.1 cents cents since Monday 9th Dec 2013.

This represents a 5% drop in market value with an overall trade of approximately 300,000 shares in just three days.

Whilst the volumes traded are not large it is disturbing to see what seems to be a "fire sale".

I can't explain a logical reason for the price reduction which has occurred on the back end of a company buy back offer that was offering AUD 9.4 cents a share only two weeks ago.

I don't know if PSA is in trouble but I do know that we have not had any updates suggesting any "dampners" on the performance of its Gulf operations or any other part of the business.

I can only assume without any other contrary advice that Main Pass and Marathon are successfully chugging along making money and in turn strengthening the company's bank balance.

Based upon published statements,

1) The company's new year is looking to be a little more upbeat with the planned drilling of some of its "monster" lease prospects and the possibility of an aquisition of some "ready to produce" opportunities.

2) The progress in Shale Oil appears to have taken a back seat for the time being although we still have the Canadian leases that may pay off in the future but none of these prospects are factored into the company's future plans.

3) Cash Balance is at US $25 mil / 237.7 million shares = US 10.5 cents / .915 exchange rate = AUD 11.4 cents per share. Therefore shares are trading at 20% less than cash. (ie. (11.4 cents - 9.1 cents) / 11.4 cents = 20%)

4) Producing assets of Marathon and Main Pass do not seem to have been valued in the share price equation of AUD 9.1 cents. These assets have a published life span of atleast another two years.

5) PSA have no debt.

Let's see what the new year brings ...

Merry Christmas to all ...

Cheers
PeterRG