PRE only a fool would sell now................

Here we go again with the ramping eh, cityboy?

StewJames - 31 Dec'00 - 16:31 - 2 of 39 edit


If you're going to repeat the same old ramp, I think it's only fair to repost this from Peter Shone:

Peter Shone - 28 Dec'00 - 22:28 - 27 of 29


Another oil company I know of (not mentioning the name as I dn't want to appear to be pushing them) has in it's 31st Dec 1999 year end figures reserves of 28.38MMBOE, including 98 BCF of gas. (50% more gas than PRE?) and 13m barrels of oil.

It's stated net asset value was £27.7m .

It would be a straight comparison, except also included in the asset value are four unexplored blocks, 50% more gas, and 13m barrels of oil. These assets are in producing fields with pipelines and refinery facilities in place.

Now how is PRE's 60BCF of gas worth more than that again?

OK prices may have shifted somewhat, but I seem to recall that PRE had only about 2m barrels of oil reserves.

Just an industry comparison rather than a fag packet calc based on hope.

StewJames - 31 Dec'00 - 16:35 - 3 of 39 edit


And this one from me:

StewJames - 24 Dec'00 - 11:58 - 6 of 29 edit


This looks like a lot of guff and a classic ramp to me, people.

'...it is probably reasonable to value at between $10 to $15 million.'

'...must be worth at least $12 million'

'...It is believed that this is worth at least $30 million.'

and the icing on the cake:

'Even with PRE's current 10%, a 600 bcf discovery would be roughly worth $60million.' This $60M has been included in the NAV calculation, yet (by the wording) hasn't actually been discovered yet.

Long on words, very short on info and justification. There is an excellent thread on the moneyworld discussion board entitled 'Pan Andean'. Might be worth reading that.


BTW, why don't you try applying these type of NAV calculations to Sibir Energy, Paladin, Soco International, Dana, Emerald Energy and any other E+P's you can think of and see how PRE compares then.