Strategic Oil and Gas Ltd SOGFF

RE:fcfactory

[jerrybe]

Thanks Iamwcw....oh well, that is exactly what we had talked about a week ago....maybe I should have held off until this equity issuance which was completely telegraphed. It is sad to have to issue so many shares and issue at such low levels but they should now be good for a long time.

This is not a ponzi scheme (with insiders owning 50% of the shares, they are hurting too...they are definitely co-investors here)...they own all the infrastructure up there...they were alone to build it, massive capital expenditures. Replacement value would be much higher than current market cap.

While production remained low, they are on the cusp of some serious growth. 20 Muskeg wells on drilling pads will make the production profile grow significantly from here. 20 * $3.2M = $64M...so capital expenditures for the entire year will be completely covered by operating cash flows and the equity issuance just performed. This growth will result in much higher margins as they use the infrastructure in place. This is the turning point. I personally will wait for the next two wells to come online (very soon now) and invest more if those two wells continue to show strong production. GLTA. Do your own D&D!