Strategic Oil and Gas Ltd SOGFF

RE:A winner at 44 cents! HUGE wells!

[jerrybe]

I have just started doing my D&D on this stock. Lots of positives here and the recent wells are proving beyond any doubt that they are on to a major play.

With all the infrastructure in place, it seems there will be huge returns to scale. I am just afraid of a big dilutive stock issue that seems to be almost pre-announced.

Any thoughts whether this should be a concern? It seems they will be significantly cash flow negative (capex >> operational cash flow) but that the firm is on the cusp of significantly improving both its production profile and its profitability.

Basically, the firm is entering a very promising period of high growth with repeatable wells all lined up in efficient pad drilling formation but it might dilute shareholders by having a big issuance, in particular if the stock price takes off somewhat. It's the only reason why I am hesitant to jump on board here.