Palliser Oil & Gas Corp. PSLRF

Q3

[retiredcf]

As indicated, they encountered a few problems in Q3 (hence today's drop in SP), however, now that the clean oil treating facility is operational, Q4 should be much stronger which makes today's drop a potential buying opportunity. And yes, I'm a glass half full kind of guy. GLTA CALGARY, Oct. 7, 2013 /CNW/ - Palliser Oil & Gas Corporation ("Palliser" or the "Company") (TSX VENTURE:PXL) is pleased to provide an operations update. The Company continues to focus its abilities on expanding production shipped by rail. The Company completed the construction of a clean oil treating facility in the third quarter which is estimated to increase the Company's capacity to ship approximately 75% of corporate production by rail, up from its previous capacity of approximately 50%. Commissioning of the cleaning facility required a build in production inventory during the third quarter, which negatively affected third quarter 2013 sales volumes, but the Company commenced shipping clean oil at the start of the fourth quarter. This facility will have a positive impact on fourth quarter and future realized heavy oil pricing. The third quarter of 2013 saw lower average production compared to the record production achieved in the second quarter of 2013. A prolonged spring breakup that extended well into the third quarter contributed to significant downtime on several wells, and delayed the majority of budgeted third quarter capital projects until late in the quarter, which allowed production declines to outpace additions. As a result of these factors, third quarter 2013 production is estimated to average 2,350 boe/d, down from 2,773 boe/d in the second quarter. The Company is currently forecasting 2013 average production of 2,500 - 2,550 boe/d, down from the original guidance of 2,700 - 2,800 boe/d. The Company estimates current production, based on field data, is approximately 2,500 boe/d and is forecasting exit production to be 2,800 - 2,900 boe/d. Capital expenditures for the third quarter are estimated to be $6 million with approximately $6 million remaining in the 2013 capital budget to be spent in the fourth quarter.

[Sir_Holler]

The biggest development this year, in my opinion, is that now with 75% of its oil having access to rail PXL is essentially no longer dependent upon Western Canada Select spreads which is largely what brought this company down. With High Volume Lift now proven and in the manufacturing stage, and more predictable high margin oil prices due to rail, PXL can now commit to a more aggressive capital

[Marlbank]

Moved some RE money here on the drop. Not quite the cache, but compelling value. Let's say they do 3000 bop/d in 2014, 63m shares, netback $25.00, you get 43c cashflow or 27m. That probably covers 3/4ish of 2014 Capex. The real wildcard is that netback. If WCS sticks around $70 and PXL ships 2400 bop/d by rail, well then,  today's SP will look very nice indeed.

[MikeOxLong7]

Also moved some RE profits here today.  Like the rail focus and there is lots of potential upside with HVL.  Trades at a steep discount to NAV like RE use to.  I see a low risk producer with nice growth opportunities and good cost control.  Wouldn't mind if they sold the natural gas lands.