PXD JV values Wolfcamp at what looks to be $21,000 per acre. PSE has some or all acreage with Wolfcamp exposure. Significant hidden value of up to current share price at the top of the range. Lots of downside protection at the very least. Will take a few years to play out.
Might be a bit of valuation work would shed some light. With Kinder taking Copano for their Eagle Ford Shale, I'd expect people to sharpen their W Texas pencils too. I'm biased but I see more value out there...especially inside an MLP.
Recently drilled 2 successful ~2,500’
lateral horizontal Jo Mill wells with
current 24 hour rates of 554 BOEPD
Jo Mill Sand
24-and 308 BOEPD (80% oil)
From latest (december) PXD presentation page 10.
These were being drilled next to PSE acreage per last conference call
Short laterals with 554 barrels and 308 barrels, big numbers for PSE compared to current 5000 barrels a day of oil only