Cohen & Steers Tax-Adv Pref Secs and Inc Fund V.PTA

RE:DEBT-FREE PTA (US$25M Enterprise Value) & Sabine Bankruptcy

[perdikaoilgas]

perdikaoilgas wrote: The numbers always help us see the real thing. What do you really expect to find now in an energy producer? Ask yourself and read this below too:

Right now, PTA at 61 cents has:

- ZERO Debt  while all the other producers suffer from a debt overhang!

- US$25 Million CASH, excluding the restricted cash. I quote:


"The Company, as of the date of this press release, holds approximately US$25 million in cash, US$11 million in estimated working capital, and over US$13 million in restricted cash".  




- Negative Net Debt of   -US$25 Million.

- Market cap of just US$50 Million  (1 USD = 1.3 CAD)

- A ridiculously low Enterprise Value of  US$25 Million (50-25)!

- Production at 4,100 boepd (99% oil). I quote:

"Company working interest production to August 23 was approximately 3,770 boepd, and with the recent Las Maracas recompletion contribution, has been approximately 4,104 boepd for the most recent 6 days up to August 23."


- 2P Reserves at 14.5 MMbbls (99% oil) pro forma the PNA deal.


https://www.petroamericaoilcorp.com/main/includes/media/pdf/2015-06-15%20PetroNova%20Acquisition%20-%20Finala.pdf



- At the current EV at 61 cents, PTA trades at US$6,100/boepd !!

- At the current EV at 61 cents, PTA trades at US$1.7/boe of 2P Reserves!!


- PTA has eliminated its CapEx in the second half of 2015 (only US$8.5 million, read Q2 2015 report) to preserve its cash and its strong balance sheet while focusing on the low cost workover, re-completions to keep its production at the 4,000 boepd levels by year end, IF the oil price does not rise from here by year end. This CapEx will be funded by operating CF and cash on hand which is US$25 Million.


- Several Near-Term High Impact wells with very low cost for PTA because PTA is carried (Tautaco-1 paid by Parex, Tinigua paid by PRE).


- 3 Operatorships in PUT-2, TINIGUA, PUT-7 where Santa Maria project is. PTA plans to drill its first well there in Q1 2016:

Prospect/Well		Activity Type			Block			Working  Interest		Expected Timing/Status
Tautaco		Exploration			LLA-10			50% (carried)1		Q4 2015
Crypto		Exploration			El Porton			100%		Q1 2016
Cumplidor N Sand		Appraisal			PUT-7			50%		Q1 2016
Tinigua-1		Exploration			Tinigua			40% (carried)2		1H 2016
Cohembi-16 NSand3		Development			Suroriente			15.8%		Q1 2016
Cohembi-17 NSand3		Development			Suroriente			15.8%		Q1 2016

- According to the Q2  2015 report, PTA is currently working on a credit facility, but there is no rush and PTA has the upper hand with the banks because PTA is debt free and is full of cash. PTA has no need for additional liquidity by H2 2016. So PTA tries to get the better deal and this is why it has not announced anything yet. I quote from the company's Q2 report on Sedar:

" Management is actively exploring opportunities to rationalize its portfolio of assets and is currently in discussions to obtain financing with terms that are advantageous to the Company. "

- US$169 Million Stockholder equity as of June 2015, so PBV now is just 0.30!

And this stockholder equity will increase in Q3 because PNA acquisition was completed in Q3 and PNA had Positive Stockholder Equity! See PNA's latest quarterly report in Sedar.


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Make your choices, make your energy bets this period. You will be responsible for your energy picks if you lose your money. Imo, you have to learn your lesson from SAMSON RESOURCES, major producer from OKLAHOMA, that went broke last week.

or you can learn another lesson from SABINE OIL and GAS, another major producer, went broke a few weeks too, see below:

https://www.wsj.com/articles/sabine-oil-gas-files-for-bankruptcy-1436958021


Many more will follow them like SFY, GDP, LEI, ZAZA, CRK  etc.

Can you really find something CHEAPER per any key metric and SAFER with a STRONGER Balance Sheet and ZERO DEBT problems from the energy sector than PTA? Which one?

Schlinker, you do need psychological and psychiatric help immediately.  You do have a severe mental illness.