Petrolatina Share Price (PELE)

http://www.investegate.co.uk/Article.aspx?id=201009101748495331S

back down to a good buy price for everyone who didnt get in a couple of days ago.

posted Wed afternoon on ADVFN PELE's cap is around 50m at present with the current 88m shares in issue. It produces in around 1200-1500bopd. Although we'll need to see a more long-term production profile of the colon wells to judge the decline rates better. they've also around 6mmbbls of reserves although the new reserve report when its eventually released will clarify that. The reason that I entered PELE once again was the testing of the new Colon sand. Its approximately 3 times thicker pay to any other Colon well and this deeper channel could cover a similar area to the existing field and also elsewhere on this or neighbouring blocks. We need to see if these oil prone sands flow first though. The C-3st also has the typical colon pay sands at similar depth as the other producing wells. If the new sand flows well it will add potentially significant P2 to PELE as well as possible material production. The cap was only around £30m when I bought. Since discovering this new sand channel management and their largest shareholders and backers have added significantly to the tune of around $20m. So a decent portion of the current cap is still cash. So depending on the outcome of the C-3ST PELE could be significantly under-valued with a cash pot and a production level in the region of 2500bopd-3000bopd with reserves to add from Q-1 and C-3ST. Or largely as they are with $20m cash, 6mmboe P2 and about 1000bopd. Also the reserves of the field are now thought to have a stratigraphic element after what they've encountered in C-3ST. I'm holding off adding until all the hot money has gotten bored and wandered off. Next key news will be the flow tests of C-3ST, will they be +ve or -VE that is the big question. With the run without news backing it and relentless buying it looked like a leak, not its turned quite sharp. A leak or traders panicing that is for you to decide. I'm keeping my eyes peeled on news. Bizarre trading swings are largely irrelevant to the future of the company, the results of C-3ST that's another matter entirely. I don't know why it rose, don't know specific reasons for the fall back (guess would be mix of profit taking and panicing in the short-termers). PELE aren't over-valued, many oilies are valued much higher and have found and produced nothing but lots of dirty water. After cash their production and reserves are valued at £35m. after this bb settles down to 3-4 posts a day again I'll likely add, in the mean time I'll wave good bye to those who buy and sell only on momentum. And if you canny beat the hot money, join the hot money and you'll end up with an increased holding at little or no extra cost. My reason for entering PELE hasn't changed. Captain Nelson Forties.

Ticking up nicely this one. Glad i managed to get yesterday morning. Hope we get some news in the coming weeks :) GL.

I did realize lol

only joking mate..gl