Petrobank and petrobakken

Petrobank and petrobakken

Postby prince_jake_33 » Mon Sep 26, 2011 5:15 pm

Is there anything new on the thai process application.
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Re: Petrobank and petrobakken

Postby dan_s » Mon Sep 26, 2011 8:15 pm

I actually talked to them today.

> Should see some progress on their first real THAI project by year-end.

> PetroBakken will report a nice increase in 3rd quarter production and appears to be on-track to hit my forecast. You can find my forecast under the PetroBank logo under our Sweet 16 tab.

My call was to see if they would come down to host one of our luncheons in November or December.

CALGARY, ALBERTA--(Marketwire - Sept. 15, 2011) - PetroBakken Energy Ltd. ("PetroBakken") (TSX:PBN - News) is pleased to announce that our cash dividend for the month of September will be paid on October 17, 2011 to all PetroBakken shareholders of record on September 30, 2011. The September dividend will be $0.08 per PetroBakken share. The ex-dividend date is September 28, 2011.

PetroBakken pays dividends monthly. Based on today's closing price ($9.15) the current yield is over 10%. Not to bad for when combined with the growth potential is has in the Cardium.
Dan Steffens
Energy Prospectus Group
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Re: Petrobank and petrobakken

Postby wturk » Thu Sep 29, 2011 8:13 am

Dan,

PBEGF continues to tank .....first bought at $26....have been selling and buying lower....now down to $7+. Don't receive a dividend.....the 10% I thought.

Anyway I am very disappointed with the latest news of shutting down some operations.

Bill
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Re: Petrobank and petrobakken

Postby dan_s » Thu Sep 29, 2011 10:01 am

Bill;

PetroBakken pays dividends, not PetroBank. PetroBank owns 59% of PetroBakken. It uses the dividends to advance it's heavy oil projects. PetroBank's Kerrobert Heavy Oil Project is moving forward and they should show progress there by year-end. Conklin is a "demonstration project" near May Creek. It is not a major setback to shut that down until they get government approval.

PetroBakken (PBN.TO or PBKEF) should report strong production growth in Q3 and Q4. They are completing lots of Cardium wells light oil wells now that it has dried out up there.

Note the last sentence of this press release. They are still moving forward with May Creek.

CALGARY, ALBERTA--(Marketwire - Sept. 29, 2011) - Petrobank Energy and Resources Ltd. (TSX:PBG - News) reports that the Energy Resources Conservation Board has scheduled a hearing for March 6, 2012 in respect of our May River Phase 1 application. Our consultation efforts with the two parties who have filed valid Statements of Concern continue, in our ongoing attempt to clarify and resolve outstanding issues prior to the hearing.

We are also announcing that we have suspended air injection at the Conklin demonstration project after completing our wet combustion test. We have completed all of our near-term testing operations scheduled for Conklin and we will now suspend the facility until we finalize plans to either integrate it into the larger May River operations or abandon the site. We recently encountered evidence of combustion gas possibly migrating up into the McMurray A formation, where we own the bitumen rights, and we will continue to evaluate data from public sources and data being supplied by an area operator who has produced gas from the McMurray A formation in the past. We have not included the McMurray A resource potential in any of our bitumen resource estimates to date. The suspension of our Conklin operations will not impact our May River development plans.
Dan Steffens
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Re: Petrobank and petrobakken

Postby prince_jake_33 » Thu Sep 29, 2011 10:20 am

The 10% Petrobank gets from Petrobakkken is used to pay for heavy oil development.
I am paying for my granddaughter to attend nursing school, I am helping my sons who had good jobs and are now working part time at a low wage with no benefits. My real estate investments in single family homes are a drag when they are empty. The employees and elected officials of our government closed a" loop hole" called Passive loses preventing me from taking losses on my rentals. I pay the government 35 cents for every 65 cents I lose. I must defer any deductions for depreciation. The government employees call it a passive loss. All the money is taken from my retirement income. I am 79 yrs old.
Bill, your post struck a nerve. We are all expecting better times. :evil:
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Re: Petrobank and petrobakken

Postby dan_s » Thu Sep 29, 2011 11:34 am

PetroBakken is down today partly because it is "ex-dividend".
Dan Steffens
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Re: Petrobank and petrobakken

Postby wturk » Thu Sep 29, 2011 4:21 pm

Dan, looks like a problem with upcoming debt due and reducing or eliminating the dividend.


Petrobakken shares drop 22 percent

* Parent Petrobank also plunges

* Investors worry about debt, dividends (Adds details and closing share prices)

CALGARY, Alberta, Sept 29 (Reuters) - Petrobakken Inc shares plunged by more than a fifth on Thursday on fears the company may have to suspend its lucrative dividend.

Shares in Petrobakken, which produces oil from the prolific Bakken field in southern Saskatchewan, fell C$1.77, or 22 percent, to C$6.59 on the Toronto Stock Exchange. Volume was nearly 3.4 million shares, nearly five times more than the three-month average.

The shares have dropped 71 percent over the past 12 months.

Shares in Petrobank , which holds 59 percent of Petrobakken, fell C$1.66, or 20 percent, to C$6.59.

Analysts said there are concerns that heavily indebted Petrobakken would have to suspend its monthly dividend of 8 Canadian cents a share as weakening oil prices cut into its cash flow.

"Everyone is worried about Petrobakken's debt position right now," said Cody Kwong, an analyst at FirstEnergy Capital Corp. "They're under scrutiny ... everyone want to have a flight to a dividend-paying (company) that looks sustainable and this is not one of those right now."

Earlier this week BMO Capital Markets analyst Jim Byrne lowered his rating on Petrobakken to "underperform" from "market performance" and dropped his target for the stock to C$7 from C$15.

Petrobakken, which produces about 35,300 barrels of oil equivalent per day, reported bank debt of C$1.14 billion ($1.2 billion) at the end of the second quarter. It also has $750 million worth of convertible debentures due in early 2013.

The company could not be immediately reached for comment.

($1=$1.04 Canadian) (Reporting by Scott Haggett; Editing by Jeffrey Hodgson and Peter Galloway)
Bill
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Re: Petrobank and petrobakken

Postby wturk » Thu Sep 29, 2011 6:49 pm

Just found out that PBN credit was extended to a 2014 due date from 2012.......should help the stock.....I am told this was in the second qtr release but the analyst did not know it. Does the shut down of a field mean anything as to THAI test.

Thanks,
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Re: Petrobank and petrobakken

Postby dan_s » Thu Sep 29, 2011 9:06 pm

I did talk to the IR Manager today. She said their is no word from the company that the dividend will be cut. We talked for awhile and she said the market should like the production growth that Petrobakken is going to report in Q3 and Q4. The company has not lowered their official guidance. She thinks they will put out an operations update by mid-October.

> PetroBakken production was 35,300 boepd in Q2 (84% oil)
> My forecast for Q3 is 39,833 boepd
> My forecast for Q4 is 45,167 boepd
* The company has publicly stated that their year-end exit rate will be 46,000 to 49,000 boepd

Assuming oil holds over $80/bbl, PetroBakken should generate over $300 million in cash flow from operations.

They are outspending their cash flows in this year's capital program but they are adding reserves. The Balance Sheet looks OK to me with Debt/Equity ratio under 50%. The drilling program is adding a lot of proven reserves that will support more debt. I'm expecting their year-end reserve report to be very good.

IMO the market overreated to the Conklin announcement by PetroBank. That was just one well. So what they shut it down. It was just a test well anyway and it has nothing to do with PetroBakken. PetroBakken has some very good acreage in the Cardium where they have ten rigs running. The rate of return on those wells with $80 oil is outstanding.
Dan Steffens
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Re: Petrobank and petrobakken

Postby par_putt » Mon Oct 03, 2011 10:14 am

PetroBakken Provides Operational Update Highlighted by Production of Over 43,000 boepd at the End of September 2011, A 22% Increase Over Q2 2011 10/03 07:00 AM

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CALGARY, ALBERTA--(Marketwire - Oct. 3, 2011) - PetroBakken Energy Ltd. (PBKEF:$6.5800,$0.0715,1.10%) ("PetroBakken" or the "Company") , a 59% owned subsidiary of Petrobank Energy and Resources Ltd. (PBEGF:$6.2680,$0.2080,3.43%) , is pleased to report drilling and operating results for the third quarter of 2011.

Production at the end of September exceeded 43,000 barrels of oil equivalent per day ("boepd") (87% light oil and NGLs), a 22% increase over second quarter 2011 production levels, based on field estimates. Our Bakken business unit production is again over 20,000 boepd while our Cardium business unit production now exceeds 14,000 boepd, with the remainder of the production generated by our southeast Saskatchewan Conventional and AB/BC business units. We estimate that we have approximately 3,000 boepd of additional productive capacity currently down due to well maintenance, site access constraints (primarily related to flooding originating in the second quarter) and facility maintenance.

Drilling activity in the quarter resulted in 96 (69.9 net) wells, a decrease of 19 (5.1 net) wells over the same period last year. Third quarter activity saw 32 (25.2 net) wells drilled in the Bakken, 44 (31.3 net) wells drilled in the Cardium, 19 (12.4 net) wells drilled in our Saskatchewan Conventional business unit and 1 (1.0 net) well in our AB/BC business unit. Consistent with an active program, at the end of the quarter we had an inventory of 47.7 net wells either waiting to be completed or to be placed on production. Of these wells, 13.7 net wells were in the Bakken (6.8 net of which are on production but not stimulated) and 24.5 net wells were in the Cardium.

We continue to execute on our business plan and currently have 18 drilling rigs operating: 8 within the Cardium fairway of Alberta, 6 within the Bakken fairway in southeast Saskatchewan, 2 drilling conventional prospects in southeast Saskatchewan and 2 drilling exploration wells in central Alberta. We anticipate that an additional 48 net wells will be drilled and a total of 75 net wells will be brought on stream by the end of the year. This would leave an anticipated inventory of 21 net wells which would be expected to be brought on stream in the first quarter of 2012.

At the end of September, PetroBakken had $1.14 billion drawn (essentially unchanged from the end of June 2011) on our three year, $1.35 billion credit facility, leaving us with over $200 million of credit capacity available on the current line in addition to our growing cash flow. Recently, there has been some market focus on our convertible debentures which mature in February 2016. The debentures have a one-time, one-day early put option on February 8, 2013 that allows those holders that elect to exercise the option to request payment in full for their debentures. In the event that holders request payment, PetroBakken has the option to repay in cash or through the issuance of PetroBakken shares based on the then current share price.

The Company has been, and will continue to be, pursuing various options to provide additional flexibility in order to repay any bonds that may be put back to us with either cash or shares. In addition to our growing production base and the potential for increasing cash flow over time, those options include: modifying our capital program and/or altering our dividend to provide additional free cash flow; issuing additional debt instruments; instituting a dividend reinvestment program; renegotiating the terms of the existing convertible debentures; or realizing on asset sales. Early in the second quarter of 2011, the Company engaged TD Securities Inc. as financial advisor, to assist the Company in our assessment and pursuit of certain options to provide increased liquidity, and we continue to actively evaluate alternatives going forward. Further announcements on the progress of this process will be made at the appropriate time.

We have positioned our asset base to focus on value creation for our shareholders, and decisions on how best to manage the business are made with both a short term and long term strategic outlook in mind. PetroBakken has built a strong portfolio of assets with a multi-year inventory of light oil drilling locations from which we can generate accretive, long term, growth. This portfolio includes over 440,000 net acres with over 1,400 net drilling locations in the well established Bakken and Cardium light oil resource plays; more than 480,000 net undeveloped acres and 300 light oil net drilling locations for conventional opportunities in southeast Saskatchewan; over 120,000 net undeveloped acres on new potential light oil resource plays (many that have seen significant attention by the industry in recent land sales); and a material land position in northeast British Columbia for future natural gas opportunities. With this asset base, and based on our current activity plans, we intend to deliver year-end 2011 production of 46,000 to 49,000 boepd. At the mid-point of this range, and based on US$85 WTI per barrel, we would expect to generate annualized cash flow of approximately $850 million. With expected continued growth in production in 2012, we would anticipate funds flow from operations (based on a similar WTI price) to grow further to equal or exceed our total capital expenditures and dividend payments. However, if conditions change, we will not hesitate to evaluate the other alternatives available to us, including altering our dividend and/or capital spending levels.

Current economic conditions and market rumours have caused shareholder focus to be turned away from the high quality, light oil assets that underpin the Company, to the perceived strength of our balance sheet in light of the convertible debenture put date (that is 16 months away) and our current capital and dividend plans. We are aware of the concern over our debt position and, as outlined above, we have several options at our disposal which we are actively assessing to effectively manage this situation in varying commodity price environments while continuing to pursue our strategies for long term, accretive, growth.par_putt

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