PDQ trading at almost half cash valueI just grabbed another 300K shares. This management is beyond incompetent at this point, but PDQ had $28.5M in cash recently. If they spent the full $2.5M required for their Phase 1 farmin in California, and another $1M in G&A, that still leaves them $25M in cash. You can buy a that cash for less than $15M, i.e 60 cents on the dollar. And get all their assets for free.
CPO-5:
- 3D at Kamal/Loto in November
- Sidetrack at Loto in Jan/Feb, potential 30MM bbls gross recoverable. Plan to isolate tested zones to eliminate water and test upper mirador (untested)
California:
- Testing of first 2 wells. 2nd well has potential to add to contingent resources net to PDQ of 4MM bbls.
- Drill 1 or 2 more wells soon. Production test (small cash flow) first 2 wells, if successful.
Talora:
- Farmout?
- Drilling another well at Verdal before year end. Will evaluate gas discovery ... will they also test Caballos?
- Plans for Dorados 1X
Tacacho:
- No plans until security improved.
Bugainvilles:
- Steam pilot if ANH approves extension. 3MM bbls 3P reserves net to PDQ.
- Redrill Tuqueque? 22MM bbls prospect.
Not a bad deal to buy those assets for negative $10M. Limited downside risk with good upward potential on a success ... perhaps success and PDQ are oxymorons? I hope not. 7th time's a charm.