I suppose we should be glad that the delays allow some more money to build up in Petsec's coffers but you do have to ask about the information flow when none is available about the three new onshore wells. I understand they too have been delayed until October.
The Vermilion accelerated development wells involve minimal disruption to current production and, if successful, will be in production themselves within 4 to 6 weeks all going well.
Then the flow rates will be close to 40 mmcf a day and that is without any contribution from the onshore wells.
Gas prices have held up very well given the mild summer and good pre winter storage situation so maybe 3 TCF may not now be enough to meet winter demand.
I expect prices to soften further in this shoulder season but that could change depending on the weather and hurricanes. Medium term the outlook remains bullish.
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Held
