Will someone please throw some cold water on this one?!!!
Larry came through again as promised. He has now officially thrown PANA's hat in the ring as being interested in doing acquisitions and I would bet that his phone is ringing off the hook as we speak, with call from potential sellers. Believe me folks, there are tons of companies that are sitting on prime prospects that are just stuck dead in the water because they can't get financing. They would do anything for a shot at drilling out their plays now, with $4 gas and $30 oil --- the best O&G commodity price environment in history, even after adjusting for inflation.
Now that Larry is gonna be in the acquisition mode, assuming he is planning to utilize PANA stock as currency for such, I would suggest to him that he refrain from putting out forecasts in his press releases. This sort of stuff can only get him in trouble. As you can see, he is being very conservative, which is a good idea from a shareholder relations point of view. But the only problem is that his potential merger partner(s) are seeing the same releases, and they will use that info against him in the merger price negotiations.
There are other ways of getting the projections out in the public domain without having them look like they're coming straight from the company. He oughtta call my old buddy Chuck Strain and and have Chuck do a writeup on PANA. They can then post Chuck's report on their web site and then the projections will be there for all to see, but it won't be viewed as coming from the company, thus giving Larry some wriggle room with both his shareholders and his potential merger partners.
What amazes me the most about this rally is that it is occurring at a time when not a single drill bit is turning to the right for this company. What's gonna happen to the stock later in the summer, when we may have as much as 3 - 4 rigs going for us at once, each one drilling a huge-impact well?!!! |
