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PETSEC ENERGY LIMITED
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PETSEC ENERGY LIMITED - View Question

Q: Dear Petsec Management,
PSA is curently trading at a significant discount to cash, reflecting the poor sentiment investors have on the Company prospects. Even after going through the company reports, I am still baffled by the upside potential of our assets, the expected expenditure for FY2012(hence downside risk in the short term), and what our forecast cashflow is (Marathon revenue of $2-3m at previous gas prices expected to offset drilling costs?). Could management please provide more information on the above. Thank you in advance.


Asked By: monopolize
Asked On: 06/12/2011 EDT
Votes: 1 Views: 153

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A: Login or signup to view company response

Answered By: PSA
Answered On: 07/12/2011 EDT


Comment Posted by Actions Date
yes that sounds right monopolize Flag 08/12/2011 EDT
So ~10m AUD downside if plugged and abandoned -excluding revenue from existing operations, worst case would be 44-10 = 34m in the bank. Thats still 6m above current market cap. Essentially we have a couple of free drills at these bargain prices. theinflationist Flag 07/12/2011 EDT
That was prompt! thanks. monopolize Flag 07/12/2011 EDT
Please refer to presentation above. Targets moving forward as outlined by presentation above - two arms, conventional and unconventional. The conventional budget is on page 19 - estimate well cost at Ship Wreck Prospect ~ USD13m (100%) - PSA stake 75%. No estimates given for unconventional Shale oil.
DEARCEO Flag 07/12/2011 EDT

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