value of the partspey makes the point clear, they have so much value within the company, all the compressors in field, the pipe are expensive and have residual value in a multi layer reservoir. the land the production the processing plants. there is enormous value in this company. now the values all depend on the part of the cycle you sell into. a hot time, like today... when I find myself saying, can it get any better? that is the oil patch, runnin hot, can the money flow get any better? Maybe time to watch out for downside. but the cash coming in today at PEY is what they dreamed of in past times.. enormous cash flow machine today, for how long? well, not to worry about it ending anytime soon!
Yes I am convinced we have a while yet in this cycle to make more 4 baggers, The natgas cyle will go super nova if and when cabon capture and sequestation proves up and the carbon put out goes to zero from a power plant burnin natgas, that my friends is near, AAV and their Entropy sub are within two months of a big test at the large AAV owned Glacier natgas plant, a 400Mmcfd plant soon to be test bed for a modular carbon capture system. If they prove carbon goes away, then natgas is the green fuel with zero carbon emit and just the methane to control for zero green house gas emittion from a natgas bruning facility. BIG consequence people. Follow the story,
In todays price enviro of $5 natgas as a low end, it is very profitable to drill wells across this landbase and at half cycle cost with the plants there and pipelines there, bringing on new production has neglitable costs,but high return and with wells paying out in under 6 months, these are longer term cash flow pigs. the big companies are showing restraint in limiting new production and paying money OUT to shareholders, his lengthens the cycle even more. still be a few four baggers in this cycle, enjoy