GREY:VFGGF - Post by User
Post by
Iching64on Sep 12, 2013 12:10pm
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Post# 21735769
PRY being realistic - at last !
PRY being realistic - at last !finally we get a practical, realistic development strategy from PRY.
What have we seen in the past ? Lofty expectations, wildy optimistic projections.
we all know that the market punishes those who do not meet expectations.
But also the opposite is true - hopefully PRY has set some very conservative, and easily beatable, targets.
Which perhaps should have been the strategy from the start, since the waterflooding schemes offer a slow but steady development of a potentially huge reserve. There is no magic bullet of gushing oil wells here - just a patient, "building for the long-term" development.
And if / when it reaches or exceeds those targets, the market will go, "wow, PRY beat their guidance !" , and then investor sentinment will change....
PRY has been playing the game wrong - instead of over-promising and under-delivering, they need to be conservative in their targets, a strategy that is in line with the long term development of this resource.
Instead of just focusing on increasing the oil barrels per day, finally they have addressed the key issues central to operating a viable business - decline curve stabilizing, costs per well get lower, debt starts to stabilize, cash flow grows.
Finally some fiscal prudence !