the past performance22 Mar 2016 10:39
you can forget the past because
1 Oil India agree the work schedule and budgets. It is very professional.
2 In the past a lot of the money was invested in export pipelines, and the central production facility. This investment is still in place and will be used in future expansions.
3. in this part of the world, oil can be pumped at $15 to $20 a bbl gross. with that in mind remember PTR are debt free, pumping oil from current wells which is covering their costs, PTR have the core infrastructure in place.
4, whatever extra gets pumped from SIB will be valued relative to gross production costs only, I'd rather someone else guessed them but I'd imagine $25 would be the very tops of it, and probably closer to $20 a bbl. huge margin there.
5 and finally, we know the test well in SIB has produced 200bopd on a long test, we also know that SIB has an estimated 100million bbls. It is close enough to the Central production facility to pipe it economically. add in the technology of Horizontal wells, and electrical pumps, seismic scans for pinpoint drilling, .
so…….I am confident that PTR can deliver. Oil is a high risk business, you take your chances like everyone here. But ask yourself Is this really only a £15m company?
6, don't be shocked if PTR do a private rights issue at a price higher than the current SP. This could happen within weeks with a pro management client taking the shares, or more likely a warrant issue. PTR management are painfully dull but they do have that old 'golf club' old timers way about them. they have been around a while and they are liked and trusted, even if investors want to shake them.
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