Spyglass Resources Corp SGLRF

RE:To me....

[shambano1]

SGL is trading at a big discount to NAV and they have a large 600,000 acres of undeveloped land for future exploration.

so if this land is uindevelop, it will only be worth so muc but if it's developed it will be worth much more from a reserves standpoint.

the only thing holding a takoever back is the large debt load, because nobody wants to buy a company and have a larger debt load with out the assocaited produciton increase, so I'm not sure it would accretive but I'm guessing here.

either way I would welcome a takeover if it happens but I suspect we'll see a JV on some of their bigger plays that they can't get to like Noel.  With 75 low risk drilling lcoations this NG resourse property could be woth much more to someone else than  SGL.

SGL could JV or even sell the property and keep a royalty interest on the produciton which serves to things, lowers their debt immediately and also increases CF as Noel is developed into a large NG production faciilty.

I think SGL does own some processing capacity in that area?  but best to double check.

everyone is scared by the high yield but that is not the whole story here and with rising NG prices they have other NG properties that they can develop, JV, or sell and lower their debt.

once the debt goes down the dividend becomes more stable and the yield will compress accordingly.

I beleive the high yield is a great opportunity to buy an asset rich company that is trading at a big discount to NAV.

I'll just collect my monthly dividend until things start to change and 2014 will be the beginning of the changes, first with the cessford Glauc wells and then with the Noel wells.

I'm long and biased so DYODD