A) Just because some posters here disappear when they are wrong, I have to post that the current Brent price proves PTA management correct. These posters have to be a man and admit their mistakes!

PTA did the right thing in H1 2015. We have to acknowledge this because some posters (including some PTA bulls) were blaming PTA's mgmt team for NOT drilling in the first half of 2015 while the other producers were drilling! So what ??

What did GTE manage to do although it was drilling new wells in the first half of 2015? GTE spent its cash and has burned a ton of cash since Q4 2014 FOR NOTHING! GTE is at C$2.89 today.
See GTE's balance sheet as of September 2014 when it has US$360 Million in Cash. It had US$203 million in March 2015 and it will have below US$200 million in June 2015!

What about GPRK or PRE that also drill in Colombia? Same thing ! See their balance sheets!

What did the other indebted companies in North America manage to do by drilling wells in the first half of 2015 IGNORING the low oil price and selling their black gold for pennies? NOTHING!! 

See MHR, SD, REXX, HK, GDP, EOX, LEI, ZAZA, CRK, LINE, MCF,  USEG, AXAS, SN, SFY, TBE.TO, SGL.TO, LRE.TO, LTS.TO   and many many other producers who were drilling wells in H1 2015. They just reached new lows last week. Go to see their charts. You have to see their charts to realize the BIG PICTURE in the energy sector before judging PTA.


B) PTA decided to NOT drill and spend money in the first half of 2015. Instead of spending money and fixing the failed pumps quickly, they exploited the downturn and their strong DEBT-FREE balance sheet  and preserved cash and  acquired financially distressed companies like PNA.


In contrast, NONE of the media darlings like  SFY, REXX, MHR, SD, HK, GDP, EOX, LEI, ZAZA, CRK, LINE, MCF,  USEG, AXAS, SN, BBEP, TBE.TO, LRE.TO, SGL.TO, LTS.TO  etc. acquired other companies !


C) Now that we all try to pick the winners and dump the losers and the indebted companies  in order to position ourselves better and to get the most out of the energy sector when BRENT starts to rise again, these are PTA's financials at  C$0.80  after PNA acquisition:


3 Operatorships in 3 Blocks (PUT-2, PUT-7, Tinigua), so PTA now looks all the other producers straight into the eyes !! 


Tinigua Block has 1000 ft net pay (see presentation below) and PTA is carried for 4 wells ! Again, this is 1000 ft net pay, and I have not seen anything close to it in South America! Show me something better if you can find any! No ramblings, no blah blah blah, show me facts!


https://www.petroamericaoilcorp.com/main/includes/media/pdf/2015-06-15%20PetroNova%20Acquisition%20-%20Finala.pdf


Tautaco-1 well will be drilled by September and PAREX pays the costs!


14.5 MMbbls of 2P reserves !


RLI jumped at 8 years  more than PAREX which has RLI at 7 years !!


Market cap at C$0.80/share  =  US$66 million
 
DEBT-FREE (still !!)

US$20+  million in Cash  (still!!)

Enterprise Value = US$46 million !!

trading at:

US$11,000/bopd  (assuming 4,000 bopd total production and including PNA's production of 300 bopd) !

US$3.17/bbl  of 2P Reserves (99% oil) !

only 1 times its adjusted EBITDA with Brent at US$55/bbl!



If you are a forward thinker and can find another producer and Operator with lower key metrics, a DEBT-FREE balance sheet and CASH who can exploit the rise in Brent during the next months, go buy it. And, let me know about it. I will buy it too!

If you are NOT a forward thinke rand you can NOT read a balance sheet and understand the big picture, the  SFY, REXX, MHR, SD, HK, GDP, EOX, LEI, ZAZA, CRK, LINE, MCF,  USEG, AXAS, SN, BBEP, SGL.TO, LRE.TO, TBE.TO, LTS.TO   are waiting for you!