Post by
wintersun10 on Oct 29, 2012 8:08pm
MD&A
Subsequent Events
The Company completed an Assignment and Conveyance Agreement with Tundra Oil & Gas Partnership, effective July 5, 2012 for the sale of all of its Assets in the Daly, Manitoba Field for a cash consideration of $380,000. The Company Assets included a 15% working interest in 5 producing oil wells and various interests in 4 shut-in oil wells. The Company’s recent working interest share of production from the Daly interests averaged approximately 2 to 3 barrels of oil per day. The settlement date of the Daly Asset disposition is May 1, 2012.
Thomas Yingling, the President of the Company, has voluntarily and independently requested a pay reduction due to soft market conditions and a poor economy. Mr. Yingling will take a reduction until such time as the Company’s financial condition improves.
Comment by
wintersun10 on Oct 29, 2012 8:09pm
Decrease in Revenue The Company’s production is primarily natural gas, i.e. 90%+/- and therefore, coupled with naturally occurring production decline, the current depressed natural gas price environment has had a significant adverse impact on Company’s revenue and cash flows.
Comment by
wintersun10 on Oct 29, 2012 8:20pm
this MD&A covers up to JUNE 30, 2012, while the Bigstone wells only started half way through June, so we still don't have more info on the current Bigstone production numbers, so all in all it looks like PEN will continue to be on sale for a bit longer till they disclose the current production...