PetroFrontier TSXV:PFC Recent Price $0.75
Just after I hit the send button on my report, I seen the news that the $15 million bought deal financing was canceled. I don't think this changes things much at all. I think we seen a knee jerk reaction sell off in the stock down about 10 to 15 cents, but short term nothing has changed. It did provide us a good buying opportunity.
PFC is financed for this year and exploration program so we will still see the results of the 3 wells and whether there is a discovery or not. It might be a blessing that they do not finance now. If they wait for results and they are good and by then markets will have likely improved they may be able to finance at higher prices.
The risk is they run into difficulties or delays and may have to finance under more difficult conditions.
Simply one never knows, that is the name of the game in exploration, but I do think the odds of
success are very good with this one. I don't think canceling of the finance had anything to do about the due diligence or prospect of PFCbut is more likely a function of the weak financial markets now. Perhaps MacQuarie figured they couldeasily raise this money and found out they could not?
Also I did not disclose in my write up that I do currently own 20,000 shares of PFC.
