Should have a result from the "G" sand on Monday or Tuesday at the latest.
Was some question mark over the pressure levels in the sand as recorded by Forest Oil. PSA engineers think the pressures should have been higher given the depth of the sand.
Hopefully all will be well and the sands will add the predicted 6-7 bcf to the well's outcome. Seems possible the second well could have spudded over the weekend.
Then it is on to China and the drilling of the first exploration well Wei 12-7. That should spud by 15 Jan. Seems a bit of interest building up in this project with shares in all four JV partners up last Thursday.
With all the indications that Vermilion will go into production by mid year Petsec appears over its first major hurdle ie. finding additional reserves to give it an assured cash flow for the next three to four years.
In January PSA will announce a record yearly profit and with the recent capital raising will have plenty of cash on hand. Apparently the China JV partners found project financing too expensive so Petsec will fund its share of development costs through equity.
I wish everyone a happy and very profitable new year.
I think Petsec is still a bargain at current prices though doubt it could repeat last year's performance and quadruple in price. A doubling is quite possible.
I like FAR going into 2004 and think VOY is a good bet for a revaluation by March when it is due to start drilling again. A lot of the oilers have had a good six months, one that hasn't but one that may surprise in the New Year is Norwest Energy.
It is currently valued at less than what it would get for its interest in Cliff Head and has some interesting onshore Perth Basin acreage in EP 419. Some geos think this lease is too far to the east to host hydrocarbons but it has yet to be tested with the drill bit.
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Held
