Market ComparisonKnowing it’s managements goal to exit 2018 at 1250+ bpoe. I’m going to discuss a comparison to give investors confidence in the current value here!!
Steppe resources - Taken out last week for 70.4 million. Steppe had 1175 bpoe except production was hedged and their debt load ballooned far too large. Plainly put it was either go bankrupt or be swallowed by your competitor.
Steppe was in no position to negotiate. So the buy out value for shareholders was definitely Gear’s number. Not Steppe’s.
It is is safe to say that had the company not been riddled with debt and bad hedges. It could have most likely sold for roughly 100-120 million.
To me this means the market will value SOIL very similarly to Steppe once Saturn achieves 2018 exit guidance. Should Saturn have unforeseen circumstances such as a large financing or a gusher well. Then this comparison should be a good base to calculate what Saturn should be worth in addition to unforeseen change.
My hope is that the Teine Energy Well was a 100-200 bpoe well in the guidance calculation. That could mean it adds possibly 500+ barrels a day to our 2018 exit guidance! To me 1750 bpoe unhedged with low debt is a 125-175 million dollar stock all day!!
Which means this could be a $0.80 - $1.00+ stock by Christmas!! Gusher well, and sky is the limit!!
If this company can finance their 120+ drilling locations and those wells average 75bpoe. That is a 10,000 bpoe company. If they add another 50% of ground. That’s a 15,000 bpoe long term target. Stick around here for a year or so. This stock is going to multi dollars by 2019!!!