Petrolifera to keep Argentine assets, Q2 results Aug. 6
2009-07-15 17:15 ET - News Release
Mr. R.A. Gusella reports
PETROLIFERA TO RETAIN ARGENTINEAN OPERATIONS, COMMENTS ON LA PINTA TESTING
Petrolifera Petroleum Ltd.'s bids received in respect of its Argentinean operations were unacceptable. Accordingly, Petrolifera has concluded the sale process and will retain its assets in the country.
A continuing capital program will be developed and initiated over the next several months to maximize production levels at Puesto Morales Norte and to fulfill modest remaining work commitments on its exploratory lands at Vaca Mahuida, Puesto Guevara and Gobernador Ayala II. A multiwell heavy oil drilling program has been under way at Gobernador recently and the results will be assessed to determine future exploitation opportunities.
In Colombia, Petrolifera has completed the testing of several zones in one formation at depth in the La Pinta well and is continuing its evaluation program of various uphole zones. The testing of the well has been problematic due to overpressuring, difficult hole conditions even though the well is cased, challenges with equipment failures compounded by the aforementioned issues and other factors. It is hoped the evaluation program of all important zones of interest, which can be tested in this well, will be completed shortly. At such time, definitive results will be communicated to the company's shareholders and capital markets.
Petrolifera anticipates providing its second quarter 2009 and year-to-date 2009 operating and financial results to capital markets on Aug. 6, 2009, and a conference call will be scheduled for the morning of Aug. 7, 2009.
Details for the conference call will be provided in the press release providing the aforementioned results.
We seek Safe Harbor.
Stockhouse Poster investorguy11 says:
At first glance this news doesn't seem that great. However one has to consider the improvements in the markets and price of oil since PDP announced their intent to divest of their Argentina assets for the right price. Not only that, but this news may be a net positive for the company in the months ahead.
Fact is, their Argentina assets produce $10-15+ million in cashflows per quarter and could increase even more so with Argentina's recent efforts to have active producers capture more profits from higher world oil prices.
Add to that the quite likely few thousand plus boepd PDP could pick up from their La Pinta well and they could have production in excess of 10k boepd easily in the near future. Their second well in Columbia could add another few thousand plus boepd. Cashflows will ramp up significantly, as will reserves.
While we wait for the final numbers in Columbia and production to begin, it's not such a bad thing to have production and cashflows continuing to come in from the Argentina assets. Petro Andina recently rejected a bid for around $8 per share and immediately moved to the $9 range after the bid was received.
This bodes well for the value of Petrolifera's Argentina assets. Bottom line is that there is no benefit to shareholders if PDP were to divest of their Argentina assets at a significant discount to their worth and coming out the market we were in until mid March, it's no surprise that bidders were making inadequate offers. At the end of 2008 the 10% PV of 2P reserves for Argentina alone were worth about $6 per share and 3P over $9.
The value of Petrolifera's concessions in Columbia and Peru are worth multiples of the current stock price and in due time the market will have no choice but to take notice. Check out the flow rates on PMG's (Petrominerales) Corcel block wells in Columbia.
The upside with PDP exploration/production in Columbia and Peru is huge.
This is only their first high impact well. Things can only get better from here.
Go PDP!
Report Insider To The Ontario Security Commission Who Sold Ahead Of The News Release Here http://www.osc.gov.on.ca/Investor/Complaints/cpt_index.jsp