Strategic Oil and Gas Ltd SOGFF

RE:a tidbit for ya

[jerrybe]

That's it! I bought some SOG shares today. First step into building a meaningful position.

Before I invest more, I want to see a bit more on the execution front. It seems they are on to something big. Happy to buy at higher prices later on if it means they are delivering on the plan and not diluting shareholders too much as they grow through the drillbit. At this point, capex is only drilling. If they get their well cost closer to $3M and improve their productivity, margins will become impressive. As the CEO said, they now need production volume to make use of all the production capacity they build to handle the flow from the region. The fixed costs need to be spread out over a greater number of wells, each new well is more profitable than the previous one. If oil prices behave, they will make a mint in the next five years.

This is a very unusual play in the AB/BC space. Lots of barriers to entry, completely captured a play that is turning out solid wells. Quite rare for a player of that size to have such a claim. It was a huge investment to get up and running but I think it is now starting to pay off. Time to jump aboard!

GLTA! Do your own D&D.