Monday, October 25, 2010

Petrobank - This guy won't stop

Devin won't give up over on gurufocus.com 

He said the following:

"1) Because you looked only at one number (PV10) you gave roughly 2/3rds of Petrobakken's land base exactly zero value. 2P reserves are booked on 348 out of 1,050 drilling locations. See page 11 in the link below:"

This is not true.  Here is my latest response.
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You just won’t quit will you?

Now your comments further expose your ignorance. Did you or did you not read the reserve report before you wrote your masterpiece on PBG?

Now, let’s go back to the reserve report again. PBN has book ~300 PUDs in the Bakken/Mississippian formations. Those are proven undeveloped wells that have not been drilled as of the report. As for probable reserves they have booked another 180 wells in the Bakken/Mississippian formations (135 Bakken, 45 other Mississippian).

Let me quote the reserves report again for you so you can read it.

“The Sproule Report has assigned proved undeveloped reserves to 207 net light oil well locations in the Bakken properties in southeast Saskatchewan. In addition, the Sproule Report has assigned proved undeveloped reserves to 90 net light oil locations in the Conventional properties located in southeast Saskatchewan and Manitoba”

“The Sproule Report has assigned probable undeveloped reserves to 135 net locations in the Bakken properties in southeast Saskatchewan. In addition, the Sproule Report has assigned probable undeveloped reserves to 45 net light oil locations in the Conventional properties located in southeast Saskatchewan and Manitoba.”
Now, I will do the math since you seem to be fairly poor at reading. The total is 477 wells already booked that will take them out to the end of 2012. The probable locations are step out and carry greater uncertainty. Again, all of this is all in the reserve report. I shouldn’t have to explain this to you. You seem to think the Bakken is something else based on what you heard in the news. Why do you continue to think that they haven’t booked any of their 1000+ wells?

Now you can continue to think that I am some sort of amateur, go ahead. You can believe that along with your $80 price target on PBG. Arguing from ignorance is a sure fire way to lose any debate.



Regards,

Kevin

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