At the current price of 32 cents PPP has a market capitalization...

At the current price of 32 cents PPP has a market capitalization of approximately $171million. According to their ASX announcement on 22/1/2009 they held approximately $150m cash reserves plus another $10m deposit as collateral to support TUI lease arrangements. Given this information the market is only valuing the other assets at about $11m.
PPP currently holds a 10 % interest in the TUI field with its entitlement to reserves being approximately 3 MMbbls of oil reserve. Although the earnings from the TUI are expected to fall over the coming years, the ASX announcement on 9/2/2009 refers to the drilling rig Kan Tan 1V drilling 2 exploration wells in the 4th quarter of 2009 within 5 prospects adjacent to the TUI Field. So there is huge potential to increase current oil reserves. Tui fields are expected to yield PPP a net 900,000 barrels this year & they refer to having $165m in cash by June 2009 based on oil price $50/bbl & A$1: US $0.65 (ASX Announcement 22/1/2009).
The corporate side of PPP is also very interesting:
1. NZO acquire 15.43% of PPP.
2. 26/12/2008 Tony Radford resigns as chairman of PPP. “The board has formalized a process aimed at managing any potential conflict of issues relating to Mr. Radford’s role as a Director of PPP and also as a director and Chairman of NZOG.”
3. 15/1/2009 NZOG announced receipt of Foreign Investment Review Board approval to acquire 19.99% of PPP and subject to the provisions of the Corporations Laws governing takeovers offers up to 100% of PPP. (Refer also to ASX announcement 22/1/2009).

Late yesterday afternoon increased buying appeared in PPP after some big turnover a few months ago. It would appear at least NZO want to have a say in the future of PPP should there be any consolidation in the TUI Field ownership & it may well be NZO could look at a takeover before 2 new wells are drilled in the light of their current holdings & having FIRB approval in place to make a bid.
Please do you own research on all recent PPP ASX announcements before making any investment decision.
REgards
Buffett