RE:RE:So What Now?Petroamerica has exposure to brent (note, different than selling cent for cent at brent pricing) and 6,000 bbl/d and cash on the balance sheet.
On the downside it has high G&A, a very risk weighted drill portfolio in the short term, and lots of cash committed.
From a macro perspective, I like capturing brent based upside (vs. most of what's listed on the TSX). But I think that can be captured with companies with larger production and lower risk in the short run (Parex personally) vs. jumping in to PTA feet first. Langur concerns me. It needs to be BIG to be a winner and move the needle on the company at 100 for 50, and on the downside, if it doesn't work we're in trouble.
When capital/interest returns to the energy space, my belief is larger names move first, so investors putting dollars to work here need to weigh off just how cheap smaller stocks need to be to get them interested vs. the larger ones that likely offer nearer term recovery.