1) I MUST point out that the insiders have been BUYING SINCE JUNE 2012 all the way down from the $3 ....and they have NOT SOLD ONE SINGLE SHARE DURING THE LAST 6 MONTHS.
2) Secondly, As the company has already promised us in Q2 2012 report, the drilling starts in Q4 2012 with 1 rig and 2 rigs will drill in Q 1 2013....SCS has $25M ANNUAL FFO which gives it the room to fund AT LEAST 10 NEW WELLS from its UNRISKED 90 LOCATIONS for the next 12 months.
10 x 2M per well (40% WI) = $20M
3) Add on this the WATERFLOOD project that starts in Q4 2012, the production will definitely rise during the next months.
I quote from Q2 2012 report....Drilling WAS PROMISED to start in Q4 2012:
"The Company expects to have all of its remaining standing wells producing by the end of the third
quarter, after which it currently plans to re-initiate its Beaverhill Lake drilling program consisting of one
drilling rig increasing to two drilling rigs by year end 2012. The Company currently anticipates running at
least two Beaverhill Lake drilling rigs for the first half of 2013. Corporate production growth is expected
to resume in the fourth quarter with the re-commencement of the Beaverhill Lake drilling program. The
Company expects that it can maintain and grow its light oil production base in the near future on a cash
flow based budget.
The Company estimates that it has an unrisked Beaverhill Lake drilling inventory of 90.0 net locations in
Judy Creek of which 16.8 net have been drilled to date. The Company’s estimates its undrilled inventory
represents approximately $403 million of unrisked net investment opportunity on primary production and
based on the type curve data disclosed above potential unrisked 30 day and 180 day average net light oil
production rates exceeding 40,000 bbl/d and 14,000 bbl/d, respectively. The Company remains focused
on maximizing its shareholders exposure to the successful development of this light oil resource.
The Company may provide a further operational update later in the third quarter or as results dictate. "