RE: an IAE mentionThanks for his note. The note reminded me to check SNG out again.
"One play he suggests people are going to have to watch is the Canadian Superior Energy (SNG), natural gas play offshore Trinidad. The target, he says, “is huge.”"
I had researched SNG some time ago and said I'd wait until the rig got to Trinidad.
Rig is contracted for 200K per day for 2 wells and 350K per day for the third well. The first well was spud on July 3, 16500 TD, 4 months to drill. They can be 50K BOEPD per day in three years if they hit on Trinidad. Huge Nova Scotia acreage and large WC exposure, including CBM. Current WC production @ 3000 BOPD, @140MM OS shares, production loan revolver of 11MM, cash flow 6MM last quarter, 7MM Working Capital, .
If Victory hits, then look for 400,000-500,000 MCFD in a new LNG train. SNG gave up 25% for 33% cost contribution. Needs 25-30MM per well. Will likely have to do more financing, but hopefully Victory is a success for they're out to market.