Wednesday, August 31, 2011
...Aug 31, 3011 seems to be moving a bit upwards...
Goombarh Flash 30, August 25, 2011
Bottom Fishing - Dragged up a Billion Share PetroAmerica (PTA, PTAXF)
Just too lazy to build the good case for investment by myself. However, here in these write-ups in the Spring of this year, pumping the PetroAmerica stock, one gets a sense of the company:
Ahead of the Herd - Columbian Oil:
James West in the Midas Letter:
An article by exclusiveReports:
Short Article in Resource Investor
And a capsule summary of what's happening recently:
has moved away from a year low of 12 cents on news it has received $2.8-million in oil revenue during the first six months of 2011 from its 15 per cent working interest in the Balay discovery of the LLanos Basin in Columbia. Since beginning long-term testing of the Balay discovery in July 2010, more than 420,000 barrels of oil with an average price of $105.91 a barrel and a per-barrel netback of $65.48. Two new test wells were started on long-term testing during the past week, producing a collective 6,561 barrels per day with negligible water under electro-submersible pump. The oil is being trucked by road although Petroamerica and its partners are now evaluating the logistics needed to transport those quantities of oil.
Link to their corporate presentation: http://www.petroamericaoilcorp.com/main/includes/media/pdf/2011-06-15_PTA%20Presentation.pdf
What are the key differences in PetroAmerica now and in the spring, well, there is the stock price for one, as in the chart following:
The stock price is now at the lowest point that it has ever been.
Another is that there was a management ruckus and changeover, where PTA undertook too much and too ambitious a program that their finances could not support, and they have divested out of some projects.
Also, a key alliance with Pacific Rubiales Energy with Pantin on the BOD may now be finished.
And the final factor is the severe dilution with financing in June, 2011 with 150 million shares now giving a 330 million share total and possibly 900 million fully diluted with all the warrants being exercise.
Is the situation that bad? IMHO, no, the management is key, and they appear hard at work in creating value for the shareholders. PetroAmerica still have relationships with Talisman Energy and Petrobras. Their Balay wells are producing and they are expecting news from their Marracus drilling.
So, the Goombarh has taken a position in this bottom fish, with the anticipation of good news coming and the eventual rise in the fall with oil prices moving back higher.
Until next time,