good result but unlikley to be rewarded by the mar

Well Petsec is on the way back from the oiler wilderness with a great half yearly report. Profit at $16.3 million is far better than Novus's $4.7 million which was also reported today. Interesting difference between the two announcements, Novus issued a breast beating presentation, Petsec didn't even bother to put out a press release.
Petsec's weakness is seen to be its small reserves situation. Market doesn't seem to realise that PSA is deliberately targeting smaller reservoirs, scraps left behind by the majors in developed fields, and perhaps this isn't seen as exploration and production just scavanging. But as we have seen today scavanging can be hugely profitable.
Vermillion is a different strategy. PSA knows there is gas on the leases, Forest Oil discovered 8 bcf back in 1988 when gas prices made the field uneconomic. Not so today. Vermillion has the potential to propel PSA into the ranks of leading midcap Australian producers.
PSA supporters have to hope that reserves at West Cameron give the company at least another 18 months to two years of good revenues. Even if Vermillion and China are proved up they wont be in production for at another 12 months so PSA needs West Cameron cash flow to sustain its activities. WC#15 will help but it won't be a disaster if it comes up dry.
Hopefully the company has some other irons in the fire it certainly has the management capacity and finance to take on additional projects.
When I look at what Novus has planned for the United States I can't help but see the similarities between what PSA attempted in the late 90's ie. participate in riskier wells while carrying a load of debt. And we all know what happened to Petsec then.