PSA said it expected to have production started at Vermilion by...

PSA said it expected to have production started at Vermilion by mid July and I had thought that the work there was ahead of schedule. Fern has said that they would report the production figures once flow rates had stabilised but I don't know how long that takes. I had thought we would have heard something by now so we must be awfully close.

PSA shares have been bid up in anticipation of the announcement so price reaction when it comes might be muted, who knows. Volumes have been small and average trades likewise indicative of retail traders buying in. What we need is some institutional interest.

The start of production at Vermilion represents a major transition for the company from one dependent essentially on a single field to one with two fields in operation with a third, Vermilion East to be added in say three months and a fourth Main Pass likely to be added within six months.

Should be looking very healthy very soon and move pass previous highs without too much trouble.