surprised by non responseI guess this acquisition and the market response illustrates a couple of things.
1. Market price of PBG isn't cheap by conventional standards. P/E ratio is in nosebleed territory.
2. Minimal reaction by market to this positive development says to me that they are valuing THAI much more than current cashflow abilities of PBG. To me the current cashflow is the amazing thing about PBG. We get the upside speculation of THAI and Colombia but don't have to endure endless issuance of stock because PBG is cashflow positive and increasing that cashflow thru conventional drilling in Canada and Colombia.
3. Possibly the overall market doesn't see the value of substantially increasing the Bakken play. This would be a company maker for PBG if they didn't have THAI or Colombia. The spectacular results of the Bakken play on PBG production and cashflow have been relegated to ho hum by the potential of the other two legs of PBG production. We get more drill sites in a proven area, we get the personnel who are experts, along with us, at extracting this technical play, we get more drills turning, more wells drilled in 2008 and an instant add to production of 4,250boepd. This is an excellent synergistic acquisition that again demonstrates the excellent mgmt at PBG. Bobwins