Production Guidance Non Event, Exciting Drilling Program ThoPTA exited June 2014 producing 6,013 boepd and had average production of 6,493 boepd over the first 6 months of 2014. To me, that clearly points to the fact that Las Maracas was in decline and that we were probably on pace to exit the year at 5,000 boepd without any new discoveries and without the acquisition of Sruoco.
Suroco acquisition didn't close until July 15th, and their production was disrupted for July and August, and were only able to produce an average of 906 bopd for those months. For Sept, Suroco averaged 1,369 bopd. Suroco was forecasting that production would average 3,000 bopd in Dec before the PTA acquisition and interuptions.
Based on the fact that PTA management is forecasting an exit of 7,400 boepd I think they are expecting Suroco production to ramp back up to at least 2,400 bopd prior to the end of the year, so approximately 600 bopd behind schedule.
To me this production update is a non event and only slightly below expectations and guidance. Market has totally overreacted and has completely missed the point on PTA.
Fact of the matter is that PTA is drilling 7 high impact wells over the next 6 months that are fully funded and just one discovery could add hundereds of millions of dollars of value. 1 for 7, on well defined prospects covered in 3D in proven plays is a pretty safe bet to me. I would expect 2 to 3 discoveries by the end of the program which will completely redefine PTA.
Hopefully they make it through their drilling program without being take out. At these prices with $60mm cash on the balance sheet and trading significantly below their 2P NAV, PTA is a sitting duck for Gran Tiera or Parex.
Either way, shareholders are going to be rewarded for their patience one way or the other, either through the drill bit or through an acquisition premium.