Palliser Oil & Gas Corp. PSLRF

RE:Trading resumes tomorrow morning

[roscoe74]

Good. A long halt does nothing to inspire confidence. 

Looking into the 2Q14 entrails ( details being a little too positive), it appears ( as usual, any official utterings from these chaps are less than transparent, although presumably legal) that these financials are stated on the understanding that PXL is considered a 'going concern'. Should this deal fall through, the going concern part will become "insolvent concern" as the brain trust at PXL state with unrestrained modesty: the company will not generate sufficient cash to continue.

Looking between the lines, the losses are piling up due to writedowns of assets and, as the brain trust explains, if this deal falls through, the financials will have to be restated as a not " going concern.

Reading between the lines, I take this to mean reevaluating the rusty bits at present value, not book and presenting decommissioning obligations in the year rather than the future. Investors are justifiably puzzled why a NAV of $153 mm turned into a bucket of rusty parts and a big liability for decommissioning. Investors astute enough to understand basing oil patch investment decisions solely on NAV is not on but seizing on NAV because the brain trust is blotting their copybook and refusing to show it.

All in all, the PXL brain trust has, either through bad luck, bad execution or both, put the assets on the block. I suppose if no other bidder comes forward, we shall have to entertain the regard that Maha holds us in and dearly hope they can learn the heavy oil ropes faster than the heavy oil biz can relieve them of the anticipated plethoria of Scandahoovian kroner.  Jenny may be on to something.