It’s been a tough 12 months for holders of Pele. First highlighted here on the Blog after 100’s of email requests last year when they were on the
slide which continued right down to 13p. At the time I wrote that it felt to me that this had been overcooked. Basically the Colon3 well hadn’t come in as most had thought however Petrolatina are not a one well outfit they have many producing assets in Columbia and recently released a healthy set of Interims in September of this year.• Revenues increased by 51% to US$14.5 million (2010: US$9.6 million) while Gross profit increased significantly to US$10.6 million* (2010: US$6.5 million*) now even though these figures are excellent the market at the time just failed to respond and the sp carried on sliding. The slide wasn’t a reflection of company performance it was a reflection of Global market fear. All company’s regardless of how well they have or are performing have been infected with this fear. The news today bodes very well for the company with a cash injection of $15 million dollars the sp has began to surge. Currently up 19%. I spoke to a few chins this morning who are well-connected they expect a 35/40% plus rise on low volume buying alone today. Now that’s just an opinion from two of the many out there. Why should it be likely to end up over 35% today? Well if you research back and take some of the Nav predictions Pele at 20p are still a two-fold increase away from Net Asset Value. Todays $15 million dollars obviously increases the Nav while the tie up with a Multi-National will increase confidence significantly. This cash should now under-pin the company drilling campaign. It’s going to be an interesting few days here for Petrolatina just where they will settle next week is the big question but in a market that is riddled with fear Petrolatinas’ ANH Approval of the Farm-out Agreement re’ the VMM-28 Exploration Block should go a long way in bringing back some much-needed confidence. And confidence, when World markets are in turmoil, drives stock-values upwards.