Stream Oil & Gas Ltd SOGAF

Big buys today by Haywood

[naive_investor]

Haywood (or possibly Mr. Tognetti) bought most of the shares today. News on the existing gas well may be coming soon. Also, the company mentioned (in the M D & A) that they had observed production level exceeding 1,200 bbls recently, which is very encouraging, indicating they may be currently producing at that level. Haywood buys today is a bullish sign. 225 bbls additional oil production would bring additional $3.5 million a year at @$45/ bbl netback and 2.5 MMcf gas would generated over $5 million net at least. On top of that there will be a bonus 125 bbl of NGl which could bring another $3-3.5 million. In total $11-12 MM incremental net revenue. This could be above a dollar in a heartbeat if they can tie-in the gas well, and seems like they will do that very soon. Also, the wording on recently observed increased oil production level is very encouraging. IMO, this is the time to buy SKO. I guess they have a plan to raise money after the gast well starts supplying to Thermo energy plant. I believe things will turn around pretty soon. Besides, they talked about farm-out. Bankers may be interested in gas from the new well. They can then raise money at a dollar or above a limit dilution to 20%. Anything below 80 cents is a great buy. Bankers has a market cap of $1.6 billion. Streat should have a market cap of $150-200 million. I expect oil production to increase sharply in the next three to six months.