Jack, thanks for your opinion on pbn, one more question please, I have looked at many canadian oil companies,COSWF,PWE,PMGLFand they have all had the same pattern as PBN, this year, yet they "PUT" was blamed for their problems, how about all the other companies? and with oil going up most of the year.
PBN issued a press release today that was glowing about progress un drilling and cash flow, so no new borrowing is expected for the extensive 2012 drilling program ( http://www.petrobakken.com/wp-content/uploads/2011/12/PBN-2011-12-13-Operational-Update.pdf ). I had a few moths ago needled them about the smallness of their hedge program, especially as compared to Linn, but of course Line has many old wells with slowly declining predictable rated, whereas PBN has a relatively few wells experiencing high decreases from IP rates. Today they announced that the hedging for next year has been raised to approx 40 % of expected production. Of course that leaves 60% open to oil market price surges that may be brewing from ME turbulence despite falling consumption as economies recede further.
The 2013 put remains in place. World financing conditions may not be favorable as 2013 approaches. Selling property as 2013 approaches could also be painful if the euro has collapsed by then and the worlds economies are tanking.
So, overall, the company is a very interesting speculation with a monthly div at 8 cents and a trading price offering 9% or so. I sold down when I thought it peeked a few weeks ago, and then built back to a ,modest position that I plan to hold.
If/when they get rid of the put threat it's character ought to change from speculation to moderately high risk investment, which is not bad for E&P.