Replies to post #10488 on Pilgrim Petroleum Corp. (PGPM)

[downsideup]

I've seen enough of the things that go on at this end of the market to always be concerned about whether the assets are real or not, worth what they say they are worth or not, etc., but, having the assets be real isn't usually much of an invitation to relax, rather than a cause for more sustained hyper vigilance.

If the Archer County leases were worth $40 million last year, they are still worth "something" today... with the value going down some, perhaps, as oil prices have gone down, and going up some, perhaps, as the probability of success of a new, high potential, shale based find goes up along with new similar finds on leases nearby, etc.

I don't know what that means for the current value of the leases here, now with ACLY, but, the value story here is still likely somewhat better than that you'd get from holdings in already known, proven productive lease holdings bought as known productive or high potential leases last year. I don't think the $40 million figure was a fully marked to market figure based on the leases having proven production values... so, even with effort by others, maybe EOG, to develop production near these leases, there is still potential they can increase in value substantially even with oil coming down. The market obviously does make it harder to get development going... but, more than the market or asset values, the boneheaded moves made by the management are the issue here.

The problems here do NOT seem to be primarily about issues with the lease valuations. The assets have some value... and what that value is will be best determined by an effort to develop production from them...

The IMVS guys have some legacy issues worth bitching about with what went on at IMVS before PGPM/Lariat et al arrived ?

Well, whatever... Join the club...

The reality is that to increase the value of their holdings from here, any holder, whether from IMVS, ACLY or PGPM... the best option there is will be to terminate the problems with mismanagement... and get the effort focused on generating real value from the assets we have, instead of allowing it to be siphoned off.