Global Value Investing

[2morrowsGains]

PBN.to(PBKEF)...Presentation notes...In today's presentation Petrobakken's CFO touched on the dividend and it did not sound as if they have any plans of adjusting it any time soon. I know it could happen though (based on if oil prices tank), but the CFO made sure he pointed out the nice yield based on today's share price.
They feel they have plenty of time (16 months) to have a significant amount of cash available to re-pay any debentures that would be put to them....mentioned many options inc re-negotiations.

More notes from the presentation...

- 1.8B boe in place w/ only 5% booked. If EOR is successful, they expect that to go to over 25%.

- At current WTI prices ($85) capital payout of a bakken well is approx 1 1/2 years.

I'm not an expert here, but after looking at the slide below, I'm guessing PBN.to(PBKEF) would still be OK (may need a few adjustments...divi, asset sale, JV, ect...) even if the price of oil dropped to $65. (Said debt to trailing EBITDA ratio on covenents would not be breached by these levels of cash flow). I'm thinking next years production could average over 50,000 boepd.


http://www.petrobakken.com/wp-content/uploads/2011/10/PBN-2011-10-11-Corp-Pres-with-Appendices-v3.pdf
http://www.wsw.com/webcast/canaccord5/