GREY:SOGFF - Post by User
Post by
oilconsultanton Nov 23, 2016 4:53pm
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Post# 25505057
beware this one
beware this onethis is simply a little company with an asset that costs well beyone what the company can afford. They drill for a qtr or two, add maybe two thousands boe's and then they run low on cash and when the slow drilling the decline is so high they never gain traction.
Loook into the past here, look at all they have spent and the production per day is just too low! they constantly need tens of million to keep drilling or production falls off a cliff. They have spen so much and have so little... just too expensive.
Yes the corridor they are drilling looks fine... 1000+ boped wells... but only half is oil... and the decline rate is huge. Seen this too often, little companies with big dreams... SOG does have some deep pockets backing them... but ebven those few will have a limit on what they will blow here at Marlowe.
From what I see, they have been drilling their very best land and still cannot self fund, after many years mind you.
Nope this is not going to work... perhaps it gets sold to someone willing to spend hundreds of millions... or probably it just gets forgeotten for years until maybe the economics work better here...
No matter, I ain't interested... not sure what you longs are thinking... perhpas you don't understand the business end here.... I just think you need to refresh yourself... look at the last 5 years at Marlowe... all the spending, all the promises, all the shares issued! and pretty little actual production... at least production besides the flush production that only flows for 6 months...LOL then it goes to maybe 200 boepd per well? maybe... nope, not working... not working at all..
when this thing self funds, you got something, that is far from proven yet though.