Hillz - I think you're right on
But the sly old Fox is thinking 3-5 yrs out, IMHO. Let's see what we have in 2006 and then what's expected in 2007-08.
1st. we have a "committment" of up to 50MM per yr in W/I purchases/investment by OilPods. OilPods sold out Goliad, has started to sell Brookshire, and I don't know about McFadden or San Juan. PRVB can't sell out W/I too early as they will need to return Capital if production doesn't happen within a reasonable timeframe. Thus McFadden and San Juan haven't really started yet. Also to read the OilPods web, Investors haven't yet started getting checks for Goliad. PRVB needs to make sure that the fatted cow doesn't go to another pasture, or the 5 yr plan may be in doubt, so the investors need to fed profits ASAP.
2nd. BF will need to "find" something for OilPods to invest in and for the shareholders to look forward to in 2009-2010. Once Goliad ( the Powder River Basin Gas Field) is developed and their other existing rework fields have been completed, they will start on McFadden (Cpt 2007) and then San Juan (Cpt 2008) and then what? Me thinks Oil Sands. OilPods can be the capital source, if need be, but I'm expecting real earnings/cash flow from the PRBGF and McFadden to produce alot of $$$$. In addition the Oil Sands are right in the sly ones back yard, so he might have some insight there.
3rd. PRVB is STILL a ONE MAN show and as such shareholders will be held hostage for a while. I think that there will sufficient development such that the share price will continue to advance, but not nearly as fast as is could if we had an independent BOD and an actual CFO. Time will tell here on this topic.
BOTTOM LINE: PRVB is vastly underpriced based on assets in the ground, and will, in all likelyhood, increase in price in 2007 as new wells come on line and it's gas is passed. It's true value will likely never be reached until there is more accountability and it is listed on a higher exchange.
I'm fully invested in PRVB and will remain so until PRVB get's alot closer to it NAV.
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