Member Info for Brasso3

We just made an acquisition for $2m which added 500 BOEPD however the share price has dropped 10% since. I think the market is sick of that strategy that is attempt to mask the operational failures and missed targets. There was supposed to be 10+ wells drilled in 2019 and we have not drilled any.

PL regularly goes on about 'cashflow' and 'cash is king' in interviews but we do not seem to have any after all these years.

I am still hopeful of 3000 BOEPD year end and 4000 BOEPD by end of Q1 2020. These are the current production figures over the last 12 months:-

Jan 2019 Actual - 3300 BOEPD
Q1 Average - 2800 BOEPD
Q2 Average - 2200 BOEPD
H1 Average - 2461 BOEPD
30/09/19 Actual - 2422 BOEPD

We have an additional 500 BOEPD (mostly gas) from Angostura to add to the last figures. As of 4th November we also have an additional 175 BOEPD from Estancia Vieja.

The interims mentioned an additional 1850 BOEPD by the end of Q1 2019:-

"The next four or so months will see continued growth for the Group as President develops a more balanced portfolio including profitable, low cost gas developments which we expect, all factors being equal, to deliver from our existing well stock an additional ca. 1,850 boepd in spring 2020."

The process to turn around Argentina is a long one and not something that can be done in the typical political cycle (4 years). I suspect Macri has done a lot of good things and they will filter through into the economy over the next few years.

Fernández tells IMF chief Argentina will 'comply with debt obligations

https://www.batimes.com.ar/news/economy/fernandez-tells-imf-chief-argentina-will-comply-with-debt-obligations.phtml

kld1

I presume you do not hold your PPC shares within an ISA in that case. There is no income tax on dividends within an ISA.

Its showing up on LSE now timed just after 09:00am.

Brave or stupid? Time will tell...

Topped up (averaged down) with 400k this morning at 4.2p. I must be f**king mad!

I now have more shares than Rob Shepherd.

I hope people are sleeping in this morning so I can top up here!

Amazing result from the smallest prospect!

The workover programme was completed.

The 5/6 well drilling programme in Argentina was pushed back into 2020. Conveniently blamed on the Argentina price restrictions despite PPC only have $200k in the bank and $28m in debt!

I hope the worst is priced in also due to the Argentine political situation.

I cannot see how PPC will find the funds to do the drill programme in Argentina and one well in Paraguay in Q1. I expect one of them will get pushed back further.

500k sale at 3.7p went through near the end.

Not sure how the price held up though.

PL has taken the share price from a high of 98p to a low of 4p! How can you possibly have a positive view unless you are recently buying stock?

9 months back the latest production target of 4900 BOEPD was set for year end 2019. Guess what... We are no where near it. They will of course dress this up in future RNS when reviewing 2019 as they will include the 500 BOEPD from the new acquisition in the year end numbers.

Maybe it has something to do with a repetitive strategy playing out by PPC over 10 years. Have a production target > fail to meet that production target > Do a placing > Buy and asset > REPEAT!

"CSG are taking up 10% in the company"

I suggest you read the RNS again!

This was the debt position since 2018:-

2018 H1 - $21.0m
2018 FY - $30.0m
2019 H1 - $27.8m

You may be correct that the $27.8m is now lower since the interims but we do not know if the IYA borrowings have increased to pay for the 16km gas pipeline.

"Debts have been significantly paid down"

Debt is currently $28m so how have you come to that conclusion?

The share price was much higher years ago as there were less shares in circulation.

At around 22 minutes there is some coverage of Vaca Muerta and the O & G industry:-

https://www.youtube.com/watch?v=eW4tEuwReZ0&t=1201s

Schroders, JP Morgan, IFC and Michinoko have held large stakes here for best part of 10 years and all are well under water. I bet they do not have such a positive view on how things have turned out but are locked in. I have no idea where the money is going to come from for Paraguay, Jefferson island and Argentina drilling over the next 6 months.

I am not sure why you are talking about dividends!

PPC had $170k in cash and $28m in debt as off 30th June 2019!

Regarding the webcast, PL does indeed sound very down beat and I feel the same.

A bit more information about Paraguay there. Drilling cost seems to have come down slightly from $10m to $9m. Seemed to indicate there was already a suitable rig in Paraguay. The delays are more related to Argentina and not over stretching the business.