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| Petrolifera reports restored sales growth and rise in cash flow for third quarter 2007 11/6/2007 | |
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Petrolifera Petroleum Limited (TSX: PDP) reports its sales growth was restored during the third quarter ("Q3") of 2007. As a consequence, successive period cash flow from operations before changes in working capital ("cash flow")(1) rose 28 percent to $18.6 million and year-to-date 2007 cash flow of $57.7 million was 85 percent higher than a year ago. Higher volumes of both crude oil and natural gas sales were the principal contributing factors. The company continued to expand its overall exploratory holdings in both Argentina and Colombia and commenced its seismic program in Peru.
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- - Crude oil sales increased eight percent over the second quarter 2007("Q2"), while equivalent volumes rose nine percent as natural gas sales rose 26 percent.
- - Year-over-year crude oil sales rose 91 percent to 8,376 bbl/d while equivalent sales rose 90 percent to 8,696 boe/d.
- - Cash flow was $18.6 million or $0.37 per common share in Q3 2007($18.4 million in 2006) while net earnings declined to $4.9 million($0.10 per common share), from $15.7 million ($0.39 per common share), fuelled by the impact of a strong Canadian dollar.
- - Year-over-year cash flow increased 85 percent to $57.7 million($1.22 per common share) while earnings decreased two percent to$24.4 million or $0.52 per common share.
- - Self-financed capital expenditures thus far in 2007 were $53.4 million, primarily for drilling new wells and constructing facilities and infrastructure in Argentina.
- - Working capital was $22.7 million at the end of the reporting period as short-term investments were reclassified to long-term after an impairment provision.
- - New concessions were acquired in Argentina and Colombia.
- - A new US$60 million credit facility was established, ensuring strong liquidity.
Beddis analysis for PDP seems a little conservative.
They originally predicted 10,500 boe production per day or a cashflow of $1.98/s
After Q3 the report wasn't updated.
With the Big Rig Drilling the production number will go up for PDP in Q4. Might be two or three deeper wells completed before the end of Dec.
The waterflood project will also increase well outputs. This is in the process of happening without further delays. The outpurt increases will raise the Q4 boe.
Should reach their original target of 10,500Boe/day. Or $1.98 per share. cashflow.
Beddis expects 16,000 boe/d in 2008 or $3.25/share cashflow.
Since the schedule as changed in drilling...rigs drilling and waterflood completion. As well as facility upgrades mostly done. The value of PDP has also changed.
My bet is production numbers are in the 8000boe/d right now and increasing...
Therefore Q4 will see 10-12,000 boe/d.
Easy $19.00 stock price right now off the increases that have happended since the Q3 reporting on Sept. 30th.
Great time to buy PDP shares. They are about to go up to the $20+ mark really fast.