Spyglass Resources Corp SGLRF

RE:RE:RE:RE:RE:The REAL Issues

[shambano1]

things may not be as dire as they appear.

firstly, the Noel was very successful and I'm pretty sure they are looking at selling or JV-ing this property, so they will get cash up front.  They ahve 85-90 low risk drilling locations, so they can sell outright or justm sell an interest for a cash injection.  This play has 8-9 years of development in it alone.

second- the glauc well is restricted and still producing 300 boe/d.  what can it proiduce at full throttle?  and they are drilling 1 or 2 follow up locations in h2-14.  They development options here as well.

as to the dividend, well q2 is a low capex quarter due to break-up, but they had operational issues with dixonville, so I'm not sure how that will work out with cash in and cash -out but even if they have to go over 100% payout in q2, if they know h2-15 is going to work out well with recent success they might leave the dividend alone.

or we might get a small cut.

the bottom-line is that they have lots of good quality oil and gas assets and the market is ripe for deal making, so I expect more deals from SGL in 2014 which will help lower debt.

why is the SP going up these past few days when all other O&G stocks are falling?? 

makes no sense unless the shorts are getting wind of a deal and starting to cover, because a good deal will send the SP much higher??

I'm long and biased but I think there are things going on behind the scenes and once they come out we will be in a good position.

don't forget NAV is 4.50 or so and SP is 1.75.

DYODD