Premium Energy Corp. (PPTL)

[Greg G]

One thing is for certain, the stock downward trend is due to a lack of information. At this point why wouldn't Bruce generate a press release? Well, there are a number of potential reasons actually. They could be negotiating financing to perform the drilling themselves, eliminating any farm out on the deal. Typically, these financing arrangements have a two prong payback. The first is cash, the second is stock. And, many times, the cash portion can be converted to stock at a predetermined price. It would make sense that the folks infusing the cash would want the deal quite until it's all neatly done, guaranteeing their ability to obtain the lowest share price and to accumulate additional shares if desired during the closing period. If this is the case it would actually be welcome news as we would have a greater stake in the project for presumably less cost.

Another reason, a bit more cynical here, is it gives the Company an opportunity to buy back stock “cheap” during the quite period to increase their stake…they do hold all of the cards right now. And, a less cynical reason is they are just oil men, they no how to find oil and gas, but do not know how to manage their PR to obtain the best stock price for them and their share holders.

I guess we can hypothesize about the lack of PR all we want, but it doesn’t change the fact that there is none. Nor does it change the fact that they have found flowing oil (new oil pool discovery) on their lease and have performed additional seismic test and acquired additional land.

The dice are rolling for me right now; will I make my pass line bet or not it’s anyone guess at the moment. In the interim I continue to Parley my bet with falling stock prices…come on 7.

Greg

PS Sorry for the betting analogy, heading off to Vegas next week…Cheers!