Good morning all,
Certainly the most exciting and positive week we have seen in SGY in a long time. I don’t get on daily to review and write down my thoughts to others posts, so I have just made some comments below, some thoughts, some responses to others posts:
Volume this week – I don’t know if anyone knows exactly where the volume is coming from, however safe to say it’s nice to see and it certainly is a positive to see buyers coming back into SGY and the Oil market in general. I believe this is just the start and we will see increased volume again next week.
Twitter – I did go on Twitter and review $SGY and there are quite a few posts regarding SGY
from Thursday and Friday, some good charts as well that are calling for a break out at these levels. Nice to see the company recognized and get a bit of play on Twitter, this is a driver of not all or even the majority but certainly some of the volume this week. If you have a Twitter account everyone on this board should go have a look and re-tweet it if you believe there is value in it.
Lukoil – The interest of the oil powerhouse Lukoil in Alberta oil companies this week is also driving volume into the Canadian Oil market in general. SGY is benefiting from this, however there is nothing to suggest that Lukoil is interested in SGY or any of it’s properties. In saying that, anything is possible and the Sparky play would be a huge development opportunity for a company like Lukoil that has the money to get production growing rapidly. Again there is no evidence that suggest this is happening, just grasping at straws.
Comparison of ATH and SGY – I see a lot of this going on recently, ATH broke out due to Nuttle’s promotion of the company. People are comparing the break out as they see the companies as comparable and SGY the lagger. I fully believe the SGY actually has much more potential then ATH, however I do see the similarities of the companies.
WTI up / differentials shrinking – This is incredibly bullish for SGY, current avg price / barrel in Canadian funds using SPOT pricing is $62.00. SGY break even in Canadian funds is right around $50.00 which each dollar above that producing between 7-8 million free cash flow. If these prices hold up, SGY could pay off $80 - $100 million in debt this year. Keep in mind free cash flow will rise as new production from their 31 wells comes on line this year.
I could go on and on, but I’ll leave it there for today. All that to say, everything is working together positively for us right now and I expect it to continue next week.
Good luck to all the longs!
Kid