Excellent PMG info from oiljack poster But remember early last year they mentioned THREE items for 2011 that had potential to double size of company (their words, not mine)
One was the heavy oil developemnt plan.
Second was the first foothills well (Bromelia).
Third was the first Peru well (LaColpa X2)
Well we are moving into 2012 and the bases are still loaded
okay....like me or hate me not many can match the dd that I provide and it is free. I am fully engaged. I was once fully connected to Colombia and am looking to tentacle past relationships once more. This looks as good a buy as I have seen in Colombia in a very long time and I shall endeavour to expand upon the why.
Look below, you have a non-wid-cat chance at commercializing a large oil discovery in Peru (75% working interest) based on the original show well....again nothing guaranteed but I will take those chances any day. See the original show well, the well currently drilling, and the follow up planned well as I noted.
* again, maybe noticed but not noted here....the company is shooting 3d seismic to the north, to the south, and to south-east of the Foothills and Deep Llanos Basin oil plays. This provides them with a fantastic mix of lower to higher risk drilling prospects and it will almost undoubtedly re-fill a prospect inventory which numbered around 100 earlier in the year. The fact that the company spend so much money on 3d seismic will pay off sooner or later (yet again).
* Lastly, for now, they have been aquiring stakes in the Colombian infrastructure (peipeline) system which will guarantee them the highest net-backs of any operator in the country and also provide them low cost access (guaranteed) to said infrstructure system. This gives them the unique capacity to be an E and P company with a "secured" lower-risk operator with a guaranteed access to pipeline capacity and the encopmpassing revenue advantages that come from it.
I really like the 2012 potential for PMG insofar as the potential to grow reserves.
* In terms of Peru they are currently drilling the La Colpa-2 which is 2 kms updip of the original La Colpa-1 discovery well. It is also believed to be in an updip position based on 3d seismic interpretation. PMG will also drill a second appraisal well further north yet, called La Colpa Norte-1. It has been suggested that this prospect has most likely reserves of 25-50 mmbo if it were to be successfully commercialized.
* PMG has a 100% carry on the first exploration well and a 50% carry on the second on two of its other Peru blocks. This essentially means that they get a free 30% working interest drill for the first well on said blocks and pay 15% to keep 30% on the second drill (also on said blocks).
* In terms of the Foothiils, Talisman, Ecopetrol, and their hybrid company (51% Ecopetrol and 49% TLM) have been having very good success with what they would call "significant" discoveries of both oil and condensate/gas. PMG's Bromelia-1 well will have results in due course as noted in other posts. These prospects are in the 25 mmbo+ range and they would open up a new region to "big reserve" additions should the trend prove successful. PMG also has a 3d seismic program planned for Block 15 to the north of said area. Thus, they have a working interest on both sides of the recent Foothills trend successes by TLM, etc.
* They are also participating, for 100 mm $US, in a Phase I pipeline expansion from the region which will guarantee them access to 12,000 bpd of pipeline production at the end of June 2012.
* They will continue to drill up the low hanging fruit in the Deep Llanis Basin play in areas such as Corcel etc but it is the big three plays of the Foothills trend, Peru and the heavy oil that have me and the other readers of this bb excited. That is where the real growth can come from should even one work.
* Until then we get a dividend, stable production and cash flow, and three swings at three big plays. I am in! Good luck to all.