RE:Great announcement Great announcement?
Lets see, downward technical revisions for LM, LC, Rumi, etc. They barely replaced production and downward revisions, even with the acquisition of Suroco.
Buying puts with oil at these prices? I would like to know the cost of this "protection".
Pre-acquisition production estimates were approx 9,000 boepd including Suroco. Here we are in the 5,000 - 6,000 bopd range IF Suroco production is in fact online.
Yes, granted, it is a good move to pay off the 11.5% debt and a nice bonus that they had the debt in Canadian dollars, which equates to approx 20% reduction in that debt from weakness of the CDN dollar.
Langur is still looking way below pre-drill estimates ... 0.5MM bbls 2P? I hope that is only becuase they need to drill more wells to define additional reserves.
The best bet for PTA at this point is a takeover offer, as they are struggling to replace the declines at LM and the shutdown in Putumary is not helping.
On the positive side, IF they actuallly drill LLA-10, it has a nice monster 20mm bbls prospect and they are substantialy carried. That would be a company changer, but it is relatively high risk.
I think this is more of a neutral announcement, with some hints of negativity.