RE:RE:RE:Short sighted investors selling off PTA today.mirage2014 wrote: The press release yesterday indicated PTA raised their 2/3 year production target from 20k to 30k boepd....that's significant and a clear signal to me that SRN is on to some great wells/land.
A lot of things will need to fall into place before that happens. PTA's cash position could be significantly reduced with this deal (even more so if they plan to drop 10-20 mil on the buyback), and not so easily replenished if the LM field continues to decline.
If the deal goes PTA's way, expect a rollback (yes, this is a forgone conclusion), but then get ready for continued/additional dilution in the coming years as this company attempts to bring it's assets on line. This will be an uphill battle for PTA.
Vetra my offer more, but they aren't as desperate for assets as PTA is. SRN represents a lifeline for PTA.