Higher?The Egyptian gave a good analysis. Most smaller, upstart companies can do the soil testing and winter drilling. However, the big bucks have to come from somewhere for the engineering, start up and taking it to production.
They have to do a lot of drilling in order to sell their upside resources to banks, investors usually coming to market many times, each time with better upside potential down the road. If they hold 100%, then sell a %, but they are 50/50 with Teak, so, any reduction of the half pie is a bigger cut.
Their biggest upside is that this is one of mining areas where mining gets a lot larger % of oil say 70-75% compared to 40% for SAGD. Of course, the amount of feet of overburden is a large cost factor.
Hindsight, should have sold out of UTS when in the $7-8 range but held on for day when producing.
Will SBE be around to production or a take-out target and looking at their properties bordering some of the majors, might be a matter of time or even Teak.?