Petrominerales (PMGLF)

dan_s · Post by **dan_s** » Sat Apr 09, 2011 5:46 pm

This one is going to make a major move as we approach 1st quarter results.

Petrominerales Ltd. (TSX: PMG and Pink Sheet: PMGLF) joined the Sweet 16 on January 1, 2011. It is a pure play on South American oil.

• Recent drilling success is why it jumped into the Sweet 16

• PMG has the potential to increase their daily production to over 80,000 BOPD by the end of 2012.

• Primarily due to higher oil prices and increasing production, I have raised my Fair Value estimate to $55/share.

Petrominerales is involved in the exploration, development and production of crude oil in Colombia and Peru. The Company produces oil in Colombia with 14 exploration blocks covering a total of 1.8 million acres in the Llanos and Putumayo Basins in which it holds a 100% interest, and 5.4 million gross acres in the Ucayali Basin of Peru in which it holds a 55% working interest.

Petrominerales Ltd. produced 33,142 bopd in the 4th quarter and it has significant exploration upside. The company has announced that Average daily production increased 7,485 bopd during the 1st quarter (22.6%).