RE: RNS2 Aug 2020 17:33
PPC had no real incentive to increase production at the start of this year and use up valuable reserves when the world didn't need or want to pay anything for it. We have been told that Argentina will have used up it's over supply and the US$45 Government Decree level due to demand side factor will start to be implemented from August. This from the Q&E on the web site...... So, I think it’s inevitable that the gas price will go up. I think it’s inevitable that there will be a plan. But the gas plan and how much paid is part of the debate and whether that amount of 3.50 per million BTU is going to paid for accretive gas over and beyond the existing gas production of the company is again subject to debate. I’d rather not comment on that, because the moment there’s no law about it there’s no provision about it and therefore at this moment in time, we are predicated on figures off 2.62 / 2.72 and we are in wintertime. and it’s getting colder. So, it’s probably going to go up. Next year will it go up in our view another. Yes, it will, in our view. Also, in our view, traditional differential between summer and the winter, which was very significant over 100% in previous years will actually erode and it will erode because of the deficit in gas, which is now in our view is inevitable coming in because of the lack of investments now and as Rob has quite correctly said there’s very little drilling activity going on, I believe last week, there was only five drilling rigs being used and all those oil rigs were unconventional, as everyone knows we are solely conventional and we I believe will be one, if not the first company, to start drilling conventional wells again in Argentina, when we start drilling targeted for mid to end of September
Sign In
Follow the stocks
