Petrus Resources Ltd T.PRQ

Suggestion-Modified Royalty Trust

[vocex1]

World markets now in bear territory, Fed in US in panic mode, confidence slipping in economy, no PPT intervention to ' save the day' for over valued markets that have run out of printed fuel. Suggestion for Gray Brothers, since they hold 70% of the outstanding 121 million shares: the strip for WTI averages approx. $95 usd all the way to December of 2024 End of 2022 production expected is 9000 bbl/day. That is gross revs of $855,000 usd/day or $312 million per year, discount differential btw WTI and Canadian @ 80% or $250 million usd. Take 1/2 of the $250m to cover overhead, drilling program to maintain production AND... announce a 50% payout in dividends at quarterly payout of . 25 cents, or $1.00 per annum Of course, wishful thinking, but, if this general market correction continues, even the best will fall in share price, except for those that demand a valuation based upon exceptional payout of profits. So, how about it Don, Ken, Stuart all the Gray family could set the pace once again as they have with Peyto, a major dividend payout would recoup your buy-in in short order and the opportunity for hedging forward at close to $80/bbl may not last, but it is good now and for the next 2.5 years. O+G operators could change the trend by upping payouts, money that is now flowing away from the energy sector(which is absurd considering free cash flows) would surely stabilize the sector and drag reluctant investment money back to this sector, especially as we are heading into a massive shortfall of fossil fuel energy supply, which is even now becoming apparent even to the most misguided Green proponents GLTA

[chriszhou]

I think paying down debt first,  then the other things. Buying back shares is also a good idea.

[llerrad5]

The whole Nat GAs sector was over bought. Usually when that happens there is a correction caused by some small or large event. Freeport was the catalyst this time. I own 5 or 6 intermidiate O and G stocks. They all needed a wake up call. I'm holding. Now to find a bottom and work our way up again hopefully to higher highs. PRQ is relatively small and the market would love to see the debt

[chriszhou]

my guess: Freeport is a plot, it happened at the right place at the right moment, some people are making huge amount of money.