PetroBank Q & A

[dan_s]

Conversation about PetroBank, which IMO has a Fair Value of $80/share.

From Seeking Alpha:

Nearly all of Petrobank's production was put into the two subsidiaries PBN and PMG. Both of these pay a dividend.

What is left in the parent is the heavy oil business unit which is just starting to develop its properties. Note that also in the parent are the patent rights to THAI.

How close to commercialization is THAI?

Hard to say. Comments from the company are that they are very, very, very close to signing an licensing deal with a national oil company to use it. And they just announced drilling of the first expansion well at their pilot project before month end (so you would hope they think it will be commercial)

Is THAI a patented process? Does Petorbank own the process?

Yes and yes. Head to their website to check it out. Patents in most of the countries with heavy oil potential.

Is THAI a process that only Petrobank will utilize or will they collect royalties from other companies on the process?

They will get a share of reserves and collect a fee from other companies that use it.

What are the estimated recovery costs per barrel utilizing THAI?

$20,000 per flowing barrel is what they said in the last conference call