current mkt cap $8 another STX ?? in the making?
Any valuation at this stage is speculative, and will be until a lot more work is completed (way beyond the drilling of Borba and Alvares), and definitely until working interests in the current well is announced we are all in the dark.
But a couple of guides I'm considering:
1. The drilling of Dempsey (with similar stratigraphy albeit not as good thickening of hydrocarbon-bearing units and closure of structures according to management) confirmed the considerable extent of hydrocarbons and during the drilling we saw the share price move to 20 cents. Not a lot has changed with the share structure since then, and Borbas is believed to be in a more favourable location to test potential. Thus 20 cents should be achievable with any success. That would put a market cap of just over $50 million, which is low if the working interest isn't reduced too much.
2. Alvares is the hole I've been waiting for the company to re-test . We know that the historical drilling confirmed it to have considerable high pressure gas. That hole re-entered, if successful could be an absolute company maker, and ensure its market cap moves to a far greater level.
My view is that SGC will be a stand out performer in the coming months. Hopefully the Dept approval isn't delayed, and equity arrangements are sorted out soon.
As an aside, the options, SGCOA, provide another alternative, with better leverage than the shares but are harder to buy - all options offered on the market for its first week of trading at anywhere near a reasonable price were snaffled by traders!
Some buying opportunities in the SGCOA just taken. But now with SGC trading above 4 cents the oppies are "in the money" with TWO years to run.
6ish next chart rest imo
Having watched the share price of SGC touch 20 cents during the drilling of Dempsey, and knowing that managements view of Borba being in a more favourable location to test potential of similar stratigraphy likely to hold multiple hydrocarbon-bearing units, IMO I'm justifiably excited. Especially with the knowledge that the share structure remains similar to previous, with the exception of the options, SGCOA (that in themselves are a great alternative means to invest - with the shares at the exercise price of 4 cents).
And we still have Alvares to re-test, a proved high pressure gas well, that hasn't been touched for about 50 years.
Am I excited? Absolutely!
For certain the share price won't be sitting at 4 cents when Borba is spud.
watch and see..$$$$$$$$ looking good billy ray
I was interested because if Borba is potentially 6 TCF or greater then it is a MONSTER TARGET ON A DOUBLE DOSE OF STEROIDS
Doing some back of the envelope numbers;
1 TCF is approximately 170 million barrels of oil equivalent.
6 TCF is over 1 billion barrels of oil equivalent !!
SGC 46% stake in Borba would equal 460 million barrels of oil equivalent.
XST 24% stake in Borba would equal 240 million barrels of oil equivalent.
Using the number above and a conservative $10 oil price as a guide Borba would be worth billions to both SGC and XST. Even if only 10% of Borba comes in (i.e. 0.6 TCF) it would still provide significant upside.
SGC current market cap is only $9m approx.
XST current market cap is only $2m approx.
Borba is only 5 kms away from Dempsey so they already now that there is gas there and lots of it.
The upside that Borba presents to SGC and XST is frightening and both share prices are going to go nuts imho.
DYOR, GLTAH's and enjoy the ride !!
its staggering, and to think XST is trading at this minuscule market cap, and as you suggest, its frightening
to think how this share will go as its being drilled
when you see the near by Rio Vista field with only 4 TCF of ultimate recoverable gas, and this one being touted by management as 50% bigger than Rio Vista, and I would expect the management at SGC is being ultra conservative. But think about it, even if they were wrong on the size, just think of the outcome then!! if it just turns out its only as big as rio vista, then 24% of 4TCF is still merely 1Tcf to Xstate.. its gotta be worth more than 2 mill???
Dempsey on steroids... and thats being conservative!! they are drilling this only a few miles away from the highly "successful" dempsey well, and i have posted up its staggering flow rates.
no doubt SGC is 100% totally focussed on this one, this prize is so phenomenally colossally big you would be totally committed to this project. you would and could not be thinking of anything else.. impossible.
tick tock spud in FEB but be aware for CR before spud imo
as of last 1/4 sgc would have near no cash a CR is when not if ..imo but looks very exciting play coming