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

Petrominerales Offers Investors Considerable Upside Despite Its Problems

I last wrote on Canadian domiciled mid-cap oil and gas producer and explorer Petrominerales (OTCPK:PMGLF) in February of this year and since then its share price has continued to fall to now being down by 32% for the year-to-date period. The company is facing a range of issues that is making it increasingly unattractive to investors, with the most significant being eight consecutive quarters of declining production combined with a declining oil price, which is significantly impacting its profitability. Petrominerales' exploration has also performed dismally with no significant finds and growing concerns about whether the company can continue to grow its core proven reserves. Along with which, Petrominerales is facing a short-term liquidity crisis, with considerable pressure to...

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