PFC plodding along as usual...Pathetic production - as usual - got to love they always announce gross production using 6:1 gas equivalent production. 2884 boed doesn't sound too bad - until you look at the gas/oil weighting and the $ they get for each...
2884 boed = 945 bpd oil and 11,652mcfd of which PFC owns 40%. Then deduct 33% for royalties. It's laughably low net production. And when you realize gas gets $1.50 mcf or so, they'd do better not to produce as their costs are likely higher than their revenues...
So 945 bpd x .40 x .33 = 125 net bpd oil production to PFC's account - wow, they must be rolling in $$$$ - maybe enough to pay for new pencils and keep the lights on. The gas is less than worthless as they probably lose money on every mcf they produce.
PFC isn't worth the cash in the bank. Their management is pathetic. Last year they enjoyed all time oil prices and they still couldn't move the needle. With $50 oil, they are dead. Lundin must have wondered what sort of lunacy overcame them to "invest" with these clowns...
And I love this comment in the MD&A:
"To date, PetroFalcon has not received any dividends from PetroCumarebo for the Company’s 40% interest in PetroCumarebo. Management expects to receive dividends for PetroCumarebo’s operations in 2007 and 2008, but the timing of these dividends is uncertain"
Isn't PetroCumarebo their major producing "asset"? Yet they aren't getting paid? Oh my. What a great bargain they made with Chavez. Blithely gave away 60% of their assets (without a shareholder vote no less!) in exchange for the priviledge of not getting paid for the 40% they were allowed to keep. It would be hilarious if it weren't so pathetic.
And it isn't much better for their 5% "ownership" in Baripetrol...
"PetroFalcon received $2.9 million in dividends from Baripetrol for operations between January and December 2007. Management expects to receive a dividend for Baripetrol’s 2008 operations, but the timing of the dividend is
uncertain."