re: well spuds - shareholders screwed
yes, buying the second hand platform now is an interesting signal. Perhaps it came up at the time it was available and they thought it was too good to refuse. If Main Pass is empty, well they have other areas to drill that will need the platform at some point.
We must remember that PSA's strategy does rely somewhat on revisiting where old gas was not developed due to the economics of the time, when companies were only looking for oil. They have always said drilling will take place near to old oil wells that they have the results of tucked away in a database somewhere. So there is a possibility that they know the gas is there already, and likewise for areas they bought at the recent lease tender as well. Prob not anywhere near rank wildcatting like some of the oil drills.
But yes, if Main Pass is a duster, we will certainly be getting the goose. Just in time for the AGM as well.
However, if Main Pass is successful, one - it will be must cheaper to develop than Vermillion and - two - the gas prices are higher than last year and will be far more profitable as well.
What the market not appreciate is that IF Main Pass is successful, the extra profit made will soon turn to pure cash, and that cash added to the Vermillion cashflow could propel the company into the next league and provide loads of surplus cashflow.
Here's hoping, everything is crossed.
PSA Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
