I'm aware of the PBN and PBG history. Over the years people ask me about PBG and PBN, I too got flamed for raising concerns about PBG and PBN debt to equity ratio . A year later BMO came out with the same comments. I noted PMG 2P NAV valuation when over $3 billion exceeded peer 2P NAV, there was considerable chatter about that. If someone continually repeats themselves, or does not provide constructive investment analysis, long or short, I'm fast to click the ignore button. If someone is posting mindlessly to cause disruption, then I ask IV to review the situation.
There is a difference between discussing or questioning the share price - relative to valuation and posting the same emotional message over and over to create fear and uncertaintly.
The market is correcting and Petrominerales's share price is declinging, that's not a good combination. clambo was the one that was correct on the valuation of PBN and PBG, when they were overvalued, but the TSX bear raid significantly oversold the shares, and PBG and PBN have rebounded from the lows.
I'm up 400% in GTE and CEN over the three - four year peroid and my interest in Petrominerales is long term and valuation metrics relative to GTE and CEN, and to a lessor degree PXT and CZE. I have big postions in GTE and CEN and smaller positions in PXT and CZE, no position in PMG.
If you review the relative value of PMG to GTE and CEN this sell-off in PMG may, or may present an opportunity to rebalance my portfolio with some PMG shares. Thailand's corporate tax is higher than Colombia's so a 2P barrel of oil that worth $20 / bbl in Thailand, is worth $33 / bbl in Colombia on-shore for PMG / GTE.
The next question would be how does the risked valuation of PMG's Llanos Foothills Trend 250 mmbo unrisked in five prosepcts compare to Coastal's published 144 mmbo of contingent resources. Nobody, I know of, is drilling high impact light oil wells as quickly and, as cost effectively as Coastal Energy.
GTE April presentation noted 89 mmbo of 3P reserves, and many of their peers would have reported much of thos 3P as 2P. GTE reports revenue and production net of royalties, PMG reports gross revenue, including Colombia share of the pie, on their balance sheet. GTE uses GAAP accounting proceedures, and when PBG owned a 65% majority interest in PMG and PBN, I found the accounting methods used confusing, even if they were in compliance with non-GAAP methods. Why was PGB, at the time a $3 billion company, using non-GAAP accounting methods. I hope I have the accounting terms correct for Canadian accounting compliance. Somebody on IV, once pointed out, I'm probably not an accountant. ,<lol>
Does PMG now use GAAP accounting, or non-GAAP? Coastal uses non-GAAP accounting. Pan Orient uses non-GAAP accounting. GTE uses GAAP accounting.
Another interest , is the discount to full value that TSX energy stocks like PMG and CEN are currently valued. PMG trading at a big discount on cash flow valautions and CEN trading at a big discount on 2P NAV. The TSX is flat for the year, while many interanational stock markets are up over 40% YTD, India, Thailand, and some of the South American markets (Colombia and Chile) have generated exceptional ROI YTD in 2012.