GREY:PMGLF - Post by User
Post by
Squint1on May 07, 2010 11:24am
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Post# 17074252
Share Price drop
Share Price drop
Stock has gone down due to:
(1) WTIhas declined from approximately $85 per bbl to $75 per bbl. As per the company’s Q1 release a $1.00reduction in WTI results in an $11.0 million drop in cash flow. This amounts to a $ 110 million drop inannual cash flow or about $ 1.01 cash flow per share annually. At a 5.5 share price multiple,this reduces share price by about $5.55 from the approximate recent high of$33.55 to $ $28.00.
(2) Oilprices above are unhedged.
(3) CurrentCandelita production in April is 31,500 bbls/day or 28% below 43,980 bbl/day –the sum of the press released flows of Candelita 1 – 12,580, #2 – 15,800 and #3– 15,600. The ultimate volume when all three wellsare on production is unclear.