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[Bobwins]

Petrobank released Q3 report. Wow! Production doubled over 2006 numbers to 9975boepd. Cashflow more than doubled to .48 while eps more than tripled to .25. Production in November is already at 16,000boepd +!! so Q4 could be 60% better than Q3!

Petrobank is firing on all cylinders. They recently signed their first THAI license deal with Duvernay and got 50% of a large heavy oil field reported to have 100 million barrels of reserves plus 10% royalty once certain production levels are reached. 62 Bakken oil wells were drilled with more to come in Q4. PBG expected to drill 80 in 2008. They have over 500 drill sites on their existing land. PBG got a large tarsands acreage in Sasketchewan.

Here is the PR:

http://biz.yahoo.com/ccn/071109/200711090424788001.html?.v=1

Spectacular increases in production, cashflow and eps. However the stock is not cheap by any standard. $2 forward cashflow against a $53 stock price is very expensive as is $1 forward eps. Fortunately production is exploding and cashflow and eps should continue to grow rapidly. Obviously PBG.to is being priced for the potential of the tarsands production as well as the potential displayed by the Duvernay deal where PBG gets ownership of known oil bearing land for the cost of drilling the wells and setting up THAI. Given the skyrocketing price of tarsand concessions, this is great and bodes well for the future.

I read thru the report quickly but I can't find anything negative in it. Bobwins