Petrominerales Q1

The Canada based Colombian producer-explorer Petrominerales(TSX:PMG) reports Q1:

Revenues $69.34 million (+11%)
Cash flow $41.8 million (-7%)
Net income $7.38 million (-67%)
EPS $0.07 (-67%)

Production
Oil 21,771 bbls/d (+152%)
Operating netback $24.20 (-64%)

Balance sheet

Assets
Current $101.09 million
Total $582.66 million

Liabilities
Current $84.82 million
Total $177,14 million

Equity $405.52 million(C$474.54 million)

P/E, P/B 2.5

Quotes:
*an undrawn $80 million credit facility
*Continued drilling success has resulted in production averaging 25,252 bopd to date in May.
*We have received expressions of
interest for our Orito property and we are considering a sale of this non-core asset through a formal marketing process.


Release(pdf) and presentation


Thoughts: PMG's production is growing rapidly in Colombia and the exploration projects in Peru are advancing. An important aspect of the Colombian production is that it is oil, not natural gas. The company has ample liquidity to grow the production in the near future, which today is not the case for most juniors or midsized e&ps.
Considering the capital intensive projects(Whitesands) that the parent company Petrobank pursues in the tight financial situation it is, the possibility of the sale of PMG is IMO very real. If the sale were to take place, the premium would be probably be very substantial.