Ken,
Ka-ching!! The PANA cash register just recorded another $.13/share or so of annual cash flow as a result of Friday's release. This is immensely positive for the company given the current level of natgas prices. Remember, with an ORRI you don't have to pay any of the well operating costs, the gross cash flow is also the net.
Also, it looks like they are finally paying attention to my endless diatribes about increasing the pace of drilling. Nice to see someone's paying attention here! {g}.
For folks that are too lazy to go to the BSNX release referrred to in the PANA release, the relevant excerpts follow:
West Delta Block 58 -- As previously reported on June 6, 2000, the company had drilled the West Delta Block 58 OCS-G 0146 #D-6 exploratory well to an intermediate TVD of approximately 11,500 feet and logged in excess of 300 net feet of gas/condensate pay in multiple Miocene-aged sands. The company subsequently deepened the well and encountered more than 100 net feet of additional net pay in multiple Miocene sand objectives. The company plans to initially complete this well in the deepest pay section and anticipates drilling another well on the property later this year to develop the upper pay sands. Basin operates the #D-6 well with a 75% working interest down to a subsea TVD of 11,300 feet and a 37.5 % working interest below that depth. Other working interest owners in the #D-6 well include Duke Energy Hydrocarbons, LLC, Energy Development Corporation, an indirect subsidiary of Noble Affiliates, Inc., and Entech Enterprises, Inc.
Other Development
During the past nine months, Basin has drilled three successful wells on West Delta Blocks 58 and 59 that have been under development for initial production. As reported on July 6, 2000, a fire occurred during completion operations on the West Delta Block 58 #D-6 well, leading to evacuation of the drilling rig. The fire was extinguished in less than two hours, no injuries were reported, and no hydrocarbon liquids were spilled as a result of the incident. Subsequent inspection indicated no subsurface damage and only minor damage to the drilling rig and surface equipment on the property. Operations were subsequently resumed after completion of rig repairs and the company anticipates initiating production from the #D-5 and #D-6 wells on West Delta Block 58 and from the #1 well on West Delta Block 59 at varying times over the next 20 days. The wells will be tied-in to existing third-party owned production facilities located on Block 58.
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The "third party" referred to above is our favorite stock, PANA! Too bad BSNX didn't have the decency to mention us by name.
Putting such good news as this out on a Friday afternoon is very odd and it has caused my imagination to run wild trying to explain why PANA would do such a thing. The best guess I have at this point is that some analyst may be about to initiate coverage and knew about the events described in the latest two PANA releases and wanted to mention them in his report. As a good corporate citizen, though, PANA wanted to get this info in the public domain first, via the traditional channels. But as a favor to the analyst, they put this latest thing out on a Friday so the stock will not run up too much on the news, which then allows the analyst to put out his report and mention all this stuff and look like a true superstar when the crowd goes wild, running up the price of PANA well past the $2 mark.
Should be an interesting week coming up!
I think your $3 target is now well within reach. |
