Spyglass Resources Corp SGLRF

The REAL Issues

[BlueCollar51]

1. Poor operational performance.

1. It’s clear that there are infrastructure problems at Dixonville. It does appear that Spyglass is working with the regulator to sort them out. This is the Oil and Gas business and “stuff” does happen.
2. What I find to be more of a concern is that to date Spyglass has consistently not met their guidance re the Capex program. Always one excuse or another (usually the weather). They don’t seem to be capable of planning and executing a Capex program.

 

2. The sustainability of the current dividend. In my opinion a meaningful reduction in the dividend would be beneficial. It would demonstrate to the market that they are serious about maintaining a 100% or less all in POR and improving the balance sheet.

 
It would give them some room for a poor quarter or two due to a Dixonville type of a problem or weak commodity prices without increasing the debt.
 
In good quarters it would give them the ability to reduce the debt and or increase the Capex.
 
 
As Always; Do Your Own Due Diligence; It’s Your Money !!
 
PS; I have a ½ position in SGY at $1.63

[eusdond]

I agree with all your commentswith the exception of the dividend cut___ The one and only way I would agree to a dividend cut would be if Management were to take a salary cut percentage wise as to the percent of the dividend reduction... If the shareholders must take a cut in pay (Dividend reduction) then the Management who caused the need for it, through their extremely poor performance,should be

[rad10]

Eus - there will be more than a "cut in pay" when they announce the divi reduction. Remember the stockhouse gurus were predicting that a cut was "priced in" at LTS last November?  Expect a drop in the SP similar to back then. That might prove to be a time to consider buying into SGL.  It worked out fairly well @ LTS. When this merger was first proposed there was a

[eusdond]

Senior management pledged a lot of things at that time that have failed to materialize... They have had more than enough time to turn this ship around and get it headed in the right direction yet we continue to languish...

[jelect]

with George Armoyan and John Wright on the board I expected some action. whether people wont or dont wont a dividend cut they seem to be in a precarious position. JMO  GLTA

[shambano1]

things may not be as dire as they appear. firstly, the Noel was very successful and I'm pretty sure they are looking at selling or JV-ing this property, so they will get cash up front.  They ahve 85-90 low risk drilling locations, so they can sell outright or justm sell an interest for a cash injection.  This play has 8-9 years of development in it alone. second- the glauc well is