GREY:LSTMF - Post by User
Comment by
CravenRaven101on Jun 09, 2011 9:25am
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Post# 18692117
RE: RE: RE: Petrobakken:Eric Nuttall
RE: RE: RE: Petrobakken:Eric NuttallNuttall isn't saying anything that isn't true... I have been suggesting a cut to the dividend would create some confidence in this managment group it is and has been the right thing to do for over 9 months...using their line of credit to backdoor fund PBG's THAI projects IS the real issue for most major investors... OF course the high decline rates in the Bakken are also an issue... although in my mind the lesser of the two... BUT with PBN and that *ahem* other BIG Bakken player already undertaking secondary recovery... it's almost like Bakken (SK Bakken) is a money pit... a couple of billion to get initial production... and then... 3-4 years later how much more money to begin squeezing the secondary recovery efforts? AND what of the BIG names... IF the Bakken was such a great play... HOW is it... Companies like Cenovus, Shell, Husky, Nexen, EOG, et al... decided to sit on the sidelines... and in some cases farm out their considerably large holdings for a Royalty???
Don't get me wrong... I THINK the Bakken is a solid money maker for the future... BUT PBN simply became a victim of its own hype... it promoted and pumped the play without cautioning investors about the back breaking capital it was going to take to develop the play...and instead of banking all that hard earned capital or putting it to work they tossed it (60% of it anyway) to PBG, who has done what with it??? Yes... shared their technology with Shell and Bonavista? who... once they got a bead on how THAI worked... let PBG buy them out of the JV's...
Once again... NOT news... the bright side of this IS simply that PBN has some amazing upside at their current price... the majority of the heavy lifitng will be done by the end of this year... I would suspect that the majority of their Bakken wells we be paid out by mid 2012...and that their Cardium work and focus should begin netting some benefit by the end of the year... THE really great thing for PBN is that they can be liquid at almost any time and use the liquidity to increase value really quick...I would almost suspect that a PBN PBG merge is inevitable before the end of the year... it gives the company heft, cash flow and an opportunity to begin consolidating some heavy oil assets for the future...
anyway It's MY opinion git yer own.