GREY:LSTMF - Post by User
Comment by
CravenRaven101on Dec 08, 2011 9:43am
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Post# 19302948
RE: Thought
RE: ThoughtIt's short term thinking...are you hoping for a price pop on something like that in order to get out of dodge with some skin still on your hide? PBN (and PBG) rely on the HOG that is Bakken in order to increase production when their alternate play (Cardium) is facing delays... BY "monetizing" the SK Bakken, you would be in effect reducing PBN's upside by half if not more... in the scheme of things... PBN's leap into the intermediate arena was ill concieved... the planning just wasn't there... in the early development...an intermediate company needs not a few thousabnd acres to make a go of it... they need hundreds of thousands... they need hundreds of "booked" drill locations... and they need LONG term plans... PBN has been working with none of this... and that shows in the lack of confidence expressed by the street in PBN's share price... besides being over extended at the trough... this horse lacks long term planning and long term vision... "wating" is NOTa plan... selling half the house.. is NOT a plan... adding bunkbeds to accomodate new tenants (issuing equity at this price) would be foolish... PBN... HAS settled down... Back in may... and june... I forecasted that they would leave 2011 behind with 50K + BOE/d of production... I still think they will make that...
debt is only an issue IF the price of a barrel drops significantly... ONE of PBN's biggest hurdles has been getting the oil to market... with the Railway's FINALLY adding some capacity... I dare say... with a little re-negotiation of the debs... and heading into 2012 with a 50K BOE/d production profile I am at last optomistic that the schooling PBN managment had over the past 2 years has finally taken hold...
OF course the caveat is simply... what will PBG do???
GLTA it's just MY opinion...