Gordon Higgins, CA, MBA
Petrolifera Petroleum Ltd.
PDP-T
WAIT
Nov 28, 2006
Had a lot of hope built into it, but it turned out the costs were a lot higher. Wait for another quarter to make sure you get more news and that it is fully digested.
Have a 55 well program planned. Have new rigs coming in and will then you will see one well a week coming out. Internally financed. 20,000 barrels a day.
5 million acres in Peru and are hugely prolific. Hd great success and know what they are doing. Doesn't seem to get the respect it deserves. Would rather buy after they have had some success and then buy the rest of their acreage as opposed to the first one.
Have been having some interesting discoveries in Argentina. Struggled this year because of lower success in exploration and Argentina legislative issues towards oil/gas. Prefers others such as Oilexco (OIL-T), Pan Orient (POE-X) and TriStar Oil (TOG-T).
Wouldn't be a big buyer of this name. Thinks it is an execution risk. Active in Argentina, which recently put on some export controls, which would cap the upside on what people could get for the commodity.
(Market Call Minute.) Growing their production very dramatically. This stock got whacked with Argentina’s higher royalty regime. At this stage, probably not a bad Buy.
Have done very well with the drill bit. Their problem is Argentina, which is using extortionist tactics that when oil gets above $45 there is no payday so netbacks are very low.
Has had a lot of success in Argentina initially and are now branching out into Peru, which is relatively low risk politically. Has been significant success in the South American countries. There is always an issue of access to market. Enough pipeline capacity? Prospectivity is there and is quite exciting.