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Gold/Mining/Energy : Petrolifera Petroleum Limited PDP.TO -- Ignore unavailable to you. Want to Upgrade?

To: pino_noir who wrote (32)	6/18/2007 1:28:02 PM
From: Cal Gary	Read Replies (1) \| Respond to of 62

The price controls have been in place for years. That's why Argentina has a supply problem today. Revealed weeks ago how serious. They broke their supply agreement with Chile just like that to conserve enough NG to make it thru the cold spell (something like 3 days). Super duper tight. Someone mentioned this is autumn, so the cold winter is yet to come. If in North America we had 3 days supply, NG prices would be through the roof. The price control affect all producers not just AEN nor PDP. It's been known to the markets since IPO days. PDP is a low cost producer, netbacks are comparable to North American situation. The big upside is the removal of the price control to stimulate investment in Argentina. May happen. Seems to me that price controls are going to hold PDP back, may be one reason why the are so far behind in the 50 well program I spoke with management at the AGM with a few concerns. This ties in with your post. They're behind in the drill program because they had originally outsourced the drilling to a contractor. In their last release they mentioned PDP is in the field and now in control of daily operations. Hopefully the drilling metrics will improve.