Caiman Valores
Contrarian, long-term horizon, research analyst, value

Petrominerales: Remains Undervalued But Is High Risk

Over the last month, I have analyzed four of the five largest oil explorers and producers by proven reserves, operating in Colombia. In this article, I will analyze the third largest oil explorer and producer in Colombia by proven reserves, Petrominerales (OTCPK:PMGLF) to determine whether the company represents a deep value investment opportunity for investors. At the time of writing, Petrominerales has some particularly compelling valuation metrics, including a price-per-flowing-barrel of around $44,000, an EV/EBITDA ratio of 1.6 and a price/operating cash-flow per share ratio of 1. This makes the company on paper appear to be particularly compelling value, even in comparison to its peers such as Gran Tierra Energy (NYSEMKT:GTE), Pacific Rubiales (OTC:PEGFF...

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