Monday, July 13, 2009

Petromin Resources (V-PTR) AGM June 30/09

The skinny on PTR's AGM on June 30/09 -

1) Revenues have increased every year since 2004 to $3.1 M in 2008.

2) June 29/09 Private Placement news release - Proceeds to be used for increasing PTR's holding in TWE (TerraWest). Right now, PTR owns 31% of TWE, this will increase it by a few percentage points. EE owns 54% of TWE. About 10% is owned by a group seeded by the likes of Sprott and Mersch. Gorrell is CEO of TWE and Downing COO.

Also, proceeds allows for opportunity to bid on more crown lands in Canada as competition has been reduced due to recession.

3) New game is shale gas. Payoff is 10x more than other options.
Key Metrics - In BC, $2B US spent on exploration rights in 2008.
Shell Canada paid $5.9B for Duvernay in Aug 08.
BP bought Chesapeake for $1.9B.
The shale play is transferable to China, where there is a huge appetite for gas and shortfall in supply. That means TWE, will the big boys be kicking tires at TWE? If so, TWE value increases sharply and that's what we want.

4) PTR's interest in TWE was a result of tire-kicking phone calls in summer 2007. There are still tire-kicking phone calls. They are always on the lookout for new opportunities, until the swallows come home, as they say.

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