Strategic Oil and Gas Ltd SOGFF

RE:Over-reaction Today?

[maramos98]

Debt at end of 2013 is 79 million on a 100 million facility.
Sog expects to spend 80 million in 2014, with cash flow of 35-40 million.
After maxing out lending facility, they will still need to raise an additional 19-24 million dollars.
Assuming that the lending facility is maxed out the debt/cf = 2.5.

Q4/13 will be horrible and Q1/14 won't be much better.

Today might of been an over reaction but share price will probably be in the 60-70 cent range for the forceable future until company shows significant improvement.