yahoo: yogi's aussie oilers, page-4

re: for graham 58 Graham,

If you would care to share that Aegis Equities material with us I am sure we would all like to have a look at what it says about PSA so we could draw our own conclusions.
As to the share price rising on the back of "hype" where on earth did you get that idea from? If anything the company should be criticised for not putting out enough information. If it did announce fortnightly production rates like AYO does for example it would be easier to keep tabs on how much money is rolling in. (And I suspect the share price would be a lot higher as a result). My recent contact with the company confirmed that there had been no dimunition in flow rates.
And what is your hang up about supposedly hidden costs? Do you really think the company is hiding something? They said they spent $11 million on exploration and development at West Cameron. And they have have said production and transport costs are 50 cents an mmcf. What more is there to say other than you think the company is lying?
And your point about reserves misses the whole PSA game plan. Their deliberate strategy is to go after small reservoirs in shallow water because they know they can made a good profit out of them. For example a piddling 4 bcf reservoir at $3 an mmmcf average returns a gross $12 US million. Allow a conservative $US4 million for exploration and development costs and you have a profit of $US 8 million. I mean it is this strategy that built the company from nothing to $7 a share in the 90's. It got into trouble when it strayed from it. Now it is back doing what it knows best.
And why on earth would you make reference to Matrix Oil and its problems as though these were a real dangers for PSA? The situations are totally different. The inference that PSA could go the way of Matrix is just palpable nonsense and scaremongering. The dangers for PSA's current production platform are those faced by any oiler in the Gulf, a platform fire, shipping accident or hurricane damage.
Interesting to see Henry Hub gas prices rise again overnight to $5.80 when last I looked. In theory they should be falling at this time of the year. If the price hangs around these levels for the rest of April it is another net $3.5-$4.0 million US for PSA.