- The company has 7 exploration wells to drill by Q1 2015. But, the company's production is not dependent on them. Any success on these EXPLORATION wells will add to the existing production targets.

The production target of 7,400 boepd for Dec 2014 will be hit thanks to the 4 DEVELOPMENT wells in Q4 2014 and 5 DEVELOPMENT wells in Q1 2015 in proven and producing oil pools (Quinde, Cohembi).

If you cannot understand it, if you cannot read the report, if you cannot get the presentation, it is YOUR problem.


- The morons who cannot get the basics, they must sell PTA tomorrow morning and go to buy PTA's peers that trade with way higher key metrics than PTA. These peers in South America, Middle East and Africa have also way worse and way weaker balance sheets than PTA.

NONE of PTA's peers (AMER.L, TXP.T, OXC.T, APAGF, AEN.L, PPC.L, ELA.L, GPX.L, RRL.L, COP.L, TRIN.L, LGO.L etc.) has CONFERENCE CALLS that you love so much, but go and buy them. Sell PTA and leave to buy the stock that will return you 100% overnight.


- This comment was posted at VD's latest article about PTA this morning. I quote:
  • Value Digger
    , Contributor
    Comments (3621)|Send Message
    Author’s reply »All,

    1) Do not look backward to make your future investment decisions and do not erroneously extrapolate non-recurring events and one-time costs associated with the Suroco deal. Q3 2014 did NOT add anything that we did NOT already know. PTA has already informed us about the blockades that lasted almost 3 months (from July to September), and the production disruption in the Putumayo Basin.

    2) PTA's fundamental position currently is stronger than ever. PTA's cash was US$63 million in September 2014, and PTA's restored its production in October when the production hit 6,359 boepd.

    3) PTA remains in line with its production forecast of 7,400 boepd for December 2014. No change there either. Now that the non-recurring events and one-time costs due to the Suroco deal are behind us, October's production is 6,359 boepd, which is UP 23% from the heavily disrupted September production of 5,183 boepd.

    4) There are 4 DEVELOPMENT Quinde wells in Q4 2014 that can easily push the company's production to the 7,400 boepd target for December 2014. We talk for a difference of just 1,000 boepd here.

    All the Quinde wells are gushers flowing approximately 3,500 bopd (100% oil), based on the results to date. Given that PTA owns 15.8% stake, PTA's WI translates into approximately 500 bopd PER WELL.

    Multiply this by 4, the production target of 7,400 boepd for December 2014 is absolutely feasible.

    5) There are also 5 DEVELOPMENT Cohembi wells coming in Q1 2015. The Cohembi oilpool is another proven and producing oil pool in the Putumayo Basin.

    Based on these additional 5 development wells of Q1 2015, the production in Q1 2015 can easily exceed 7,400 boepd (December 2014).

    6) This production target of 7,400 boepd for December 2014 assumes ZERO success in the 7 EXPLORATION wells that will be drilled by Q1 2015. Please see the company's presentation (slide 20).

    7) The non-commercial EXPLORATION well (Zampona) was targeting ONLY Pmean WI 1.35 MMbbls.

    To put it into perspective, the ongoing exploration well (Langur-1) is targeting Pmean WI 4.95 MMBbls.

    And the exploration well (Garza Roja-1) will be targeting Pmean WI 12.91 MMBbls in Q1 2015.

    8) Despite the one-time events & non-recurring costs associated with SRN deal in Q3, Q3 EBITDA was almost US$23 million.

    Right now at C$0.27, PTA trades LESS than 2 times its EBITDA for 2014.

    As shown in my articles (Part 1, Part 2, Top Idea), PTA's peers in South America, Africa and Middle East currently trade between 4 and 15 times their 2014 EBITDA, while receiving the SAME Brent price.

    9) After all, it is absolutely foolish if you sell PTA at C$0.27, given that PTA remains the cheapest oil-weighted producer worldwide with a pristine balance sheet. Now is the time to load PTA, which currently remains a unique buying opportunity.

    Regards,
    VD