PetroBank 1st quarter results

[dan_s]

Petrobank Energy and Resources Ltd. announced first quarter 2010 financial and operating results highlighted by funds flow from operations of $3.14 per diluted share and net income of $0.76 per diluted share. They also provided an operational update for our Heavy Oil Business Unit where progress continues on their Kerrobert, Conklin and May River projects.

Note that Funds Flow from Operations is triple what it was in Q1 2009.

EPS of $0.76 compares to a loss of 2 cents per share in Q1 2009.

PetroBank's average daily production during the 1st quarter was 81,297 boepd which is above my previous full year forecast and compares to 70,176 boepd in Q4 2009.

I will update my Net Income and Cash Flow Forecast tomorrow and provide my new Fair Value estimate.

PetroBank is heavily weighted to oil.

Dan

[dan_s]

I just completed updating my forecast model for PetroBank and all I can say is WOW! I sent it to Kim and she will have it loaded to our website on Monday.

Check out this production growth:
2006 Actual = 5,269 boepd
2007 Actual = 10,211 boepd
2008 Actual = 29,475 boepd
2009 Actual = 48,647 boepd
Q1 2010 Actual = 81,297 boepd (93% oil)

Their 1st quarter EPS beat my forecast by $0.20Cdn, the Balance Sheet is in great shape and their growth continues as subsidiaries PetroBakken and Petromineralies both made acquisitions that will close in Q2.

My Fair Value estimate is $72Cdn/Share. The share price is down over 8% YTD which makes no sense to me since it is heavily weighted to oil.

Trades as PBG.TO and PBEGF.PK in the U.S.

Don't let the fact that it trades on the Pink Sheets scare you. This is a "Core Holding" quality stock trading at a deep discount to its value.

Dan