Post by
shambano1 on May 28, 2014 9:41am
NG prices are not even being considered
right now SGL is a 50/50 split between oil and gas and I don't think they are getting any credit for their future NG produciton since these assets were not given a lot of value when NG prices crashed 2 years ago.
so now most junior O&G companies consider themselves oil focused but SGL is drilling their NG resource well in q2 and it's a low risk develoment well and it's just a quesiton of how much it will produce.
they have over 80 or is it 90 future development locations at Noel and I know this future gas resourse will be worth a lot of money in the future when NG prices get back to normal levels of plus 4 or 5 or even 6 depending on the economy and produciton numbers.
so the Noel cadomin resource property is definitely not priced into our SP and if you can wait another 2 months for some results and maybe a development plan for 2015 we will be rewarded.
I don't see SGL cutting their dividend anytime soon and every month we shareholders get another dividend and every month the sceptics proclaim we are doomed.
I have tremendous respect for John Wright and if he is buying then I am buying plain and simple. These people know a lot more that the bank analysts that are scareing investors into selling their shares because this as their saying goes this is the month that Spyglass will cut the dividend.
and don't forget as the market for asset sales gets better and it's showing a lot of life this year, then SGL will continue to sell off smaller non-core properties to help pay for increased capex and some debt reduction.
but increased CF can also come from higher and higher NG prices and nobody is expecting this to occur anytime soon.
but as it becomes ore and more apparent that storage will not get back full this injection season NG prices will spike next winter and NG producers might finally get some respect.
of course I'm guessing and I'm long ans biased so DYODD