More volume boosts projected near-term cash flow despite lower futures price for oil. The relatively short producing life for specific deposits of offshore oil can usually be extended by developing new deposits nearby, as the company is demonstrating as a leading producer in Eastern Canada.
Offshore resources represent the largest portion of the 65% of present value in oil production. The company’s 12% interest in oil sands giant Syncrude, worth 20% of corporate present value, will also see volume grow in 2007 to a new level that can be sustained practically indefinitely. Currently out of favor with investors with stock price below its 200-day average, PCZ has a half weighting in our illustrative energy portfolio, concentrated on real assets that promise a high return providing clean fuel for global growth.
PCZ 1-yr chart