RE:Doing Some DD - PFCI'll give you the long and short of it. PFC has a history that is marked with failure, that makes it future much less promising.
After extensive exploration, PFC identified 3 potential production wells in 2012- Owen, Baldwyn and MacIntyre. They subsequently drilled these, and all 3 dissapointed, although Owen had tremendous gas and oil shows, but was mixed with sulfur and a few other things that made it very challenging to recover. At that point PFC had spent almost all it's money on drilling these wells, and were on the verge of bankruptcy. They went into a strategic review to try and salvage the company. Statoil came along and agreed to "carry" PFC in exchange for an 80% stake in their acreage. So ownership of the 13M acres, and anything produced from them is 80% Statoil and 20% PFC. In exchange Statoil would fully fund up to 3 phases of exploration to identify targets and de-risk the acreage. Phase 1 was just completed- it cost 50M$. And the intent was to drill 5 wells and try to stimulate a few of them to see if they were able to get some oil flowing via "fracking" technique. Of the 5 wells, 2 were identified as potential producers. Statoil couldn't get anything flowing from the first one. They just completed testing the 2nd one, and that too was a failure. Oh yes, and they reviewed the other 3 wells PFC had previously drilled on their own, and Statoil decided they were not worth pursuing. So that makes 5 wells that have been exhaustively worked on, and subsequently abandonned. That's why the stock price dropped so much on Friday. Statoil has completed their commitment to PFC for Phase 1. They now have 3 months to decide if they want to proceed to Phase 2, and spend an additional 30M$ exploring new targets. So, that's why the price is so low- the best oil company in the world failed to produce promising results on PFC land. It casts serious doubt over anyone's ability to produce from these lands.
They have a bit of cash ($6M @ last financial statement in June) But, that being said they are in a legal battle with McQuarie capital markets, and so that will eat up a lot of their cash as well.
Heritage Oil owned 20% of the O/S shares, but Heritage was bought out by a company from the UAE i think.
Oh yes, and the owners of PFC also had another oil and gas venture ROZ. They failed to find oil on ROZ lands as well, burnt their cash, failed to find a strategic partner, and all resigned from the company simultaneously triggering a trading halt on the shares. It's since been lifted, but ROZ now trades on some weird dark underbelly exchange. They left shareholders holding the bag there.
That's about it. I wish I could be more positive, but with the latest bad news there is really very little good to say about the company other than they have more cash on hand right now than their market cap. And if Statoil goes to Phase 2, then there's hope.
Personally I've pulled evrything out of this stock. I was very hopeful, and a lot on this BB were, but we've all lost a ton on this. None of the guys who know the history of this company are staying in I'll bet. There's a new group on this BB now trying to attract new investors. I hope for your sakes there is upside to this stock, but I'm done here.