Share pricePetrobank isn't a hot little junior oil exploration and production company with funny technology any longer. It was a very strong performer last year and was incorporated into many mutual funds and corporate investment portfolios. Sector rotation funds are moving away from oilsands investments in general, because of recent bad press relating to cost and royalty increases. As money flows out of mutual funds and corporate investment portfolios look offshore and into precious metals to secure value, some PBG shares are being sold. The volumes are rather large compared to retail trading, and the share prices are temporarily pushed down. The institutional selling will be over(hopefully soon)eventually, and the share price will resume its inexorable rise as the Petrobank story unfolds.
Big numbers of new wells in the Bakken play will significantly increase light oil production; Petrominerales is catching its stride and will have strong production increases; THAI will put more months of production under its belt, likely reaching steady state production; CAPRI will be put into use in the expanded test program and add more value; Commercial production will be initiated; Duvernay will start its heavy oil THAI project and more companies will licence Petrobank's technology to increase production and cut costs and emissions. The Saskatchewan property will be drilled and THAI/CAPRI production will commence, watched carefully by Oilsands Quest who control most of the surrounding resource.
The future for Petrobank is very bright, and I'm keeping every share I own and will add more when I can, holding at least until THAI/CAPRI is the "gold standard" technology for heavy oils and the licensing dollars are flowing strongly. By then Petrobank will very likely be paying a nice fat dividend. A share price reduction in these scrappy markets is of little concern to my long term outlook for Petrobank. Shameless pumping perhaps, but its what I believe will happen. M.