why is the price so low ?

Folks,

The share price value for PSA continues to baffle me ...

There are quite a few small Aust O&G companies on the market and many of these have interests in North America just like PSA.

But not many can boast that they have a strong cash ($24 mil) and forward inventory balance (9.1 BCF) as at Jun 30, 2013.

Considering the risks involved with these small O&G companies, having a strong cash balance together with producing wells that are now effectively paying their own way it is sometimes difficult to understand the enormous downgrades being applied to the PSA share price.

In looking through the June 30 2013 Accounts, the Net Tangible Asset Value (NTA) per share appeared to be :

US$46.526 mil / 237.7 mil shares = US$0.19.6 cents

US$0.196 cents / .945 = AUD $0.207 cents per share

NTA $0.207 cents compared to current ASX Share Price of $0.094 cents

Perceived % Devaluation = (.207 - .094)/ .207 = 55%

The PSA share price is therefore 55% less than the comprable NTA value.

Furthermore, cash per share is $24.mil / 237.7 mil shares = AUD $0.10 cents per share compared with an ASX Share Price of $0.094 cents.

On this basis, the share price is also valued at less than cash in bank.

Am I missing something ? Food for thought ?

Cheers,
PeterRG