spudding next week, page-14

re: exciting times coming up for petsec To diverge a little Jocam, but interesting to note that PSA this week are trading for LESS than they were before the SPUD of the first successful vermillion well. It is again another reminder that for short term trading it is a very frequent occurrence that the short term speculative bubble pre drilling can often lead the price to run so high that a significant discovery premiuim is already built in such that no profits are made on the post discovery trading.

This sort of comment does not extend to medium and long term trading where ultimately the underlying cash flows should determine the long term share value - however most of this is value is only reflected when the cash flows are actually produced, sometimes a year and even two or three or four or five down the track.

acturtle