Global Value Investing

[RogueBravo]

PBEGF/PBKEF both down over 21% today.

Anyone care to elaborate on this news? Price action over-exaggerated (and oversold) or justifiable?:

Petrobank Energy Says May River Hearing Set For March 6 >PBG.T

Sep 29, 2011 10:15:18 (ET)

DOW JONES NEWSWIRES

Petrobank Energy & Resources Ltd. (PBG.T) said Thursday Alberta's Energy Resources Conservation Board will hold a hearing March 6 on its application for the first phase of development at its May River heavy oil project in Alberta.

The Calgary oil and gas company has applied for regulatory approval to develop May River, the first phase of which will have the capacity to produce 10,000 to 15,000 barrels a day of partially upgraded bitumen.

Petrobank said it continues to consult with two parties that have filed statements of concern in an attempt to clarify and resolve outstanding issues before the hearing. According to a document posted on the company's website, Beaver Lake Cree Nation and Conklin Metis Local 193, two aboriginal groups, have filed statements of concern related to the project.

Haywood Securities said the hearing, if positive, will allow the company and investors to contemplate a timeline for first production "after an exhausting two-year approval process." Haywood puts the cost of Phase 1 at about C$250 million, including drilling and facilities.

Petrobank also announced the suspension of air injection at its Conklin demonstration project after completing its wet combustion test. It said it has now completed all of the near-term testing operations scheduled for Conklin and will suspend the facility until it finalizes plans to either integrate it into the larger May River operations or abandon the site.

It said the suspension won't affect its May River development plans.

Conklin was field-testing Petrobank's patented THAI, or toe-to-heel air injection, heavy-oil recovery process.

Haywood noted that Conklin transitioned to a full test facility and isn't intended to be integrated with the company's development plans.

In Toronto Thursday, Petrobank was recently down 1.2% to C$8.15.

-By Judy McKinnon, Dow Jones Newswires; 416-306-2100; [e-mail]

(END) Dow Jones Newswires

September 29, 2011 10:15 ET (14:15 GMT)