Southern Energy Corp V.SOU

This bulletin board has the most !diotic posts

[Flush11]

I get the anger - pretty bad sideswipe with the amount of dilution. But it was a bought deal - so the company gets the cash up front, the investors have to hold the stock for a period of time, have the same risks we do and there are no warrants or options to be exercised - so no overhang of additional shares. These bought deals usually go into strong hands.

one poster thinks the money is rolling in and we can just drill with that for the forseeable future? yeah right. First the gas has to flow into the pipeline, then it is shipped to the end user and then 30 to 90 days later the cheques start showing up. Could we wait until Q4 to drill? sure but that means maybe 2 three well pads over the next 9-10 months. This should be enough money to run one rig all of the time starting later in the year. It will speed up the project cycle but the company has a few things to wait on.

They still need to wait a couple of months and see some data come in. When  the fluid is all cleaned up what is the gas production? What is the pressure drawdown on an open flow test? How much do they have to choke the wells back to get the best recovery rate out of the reservoir? If you produce to fast it can destabilize the reservoir.

Then there is the fracking info - three wells, three slightly differerent frac jobs. More frac stages, more sand per frac stage, trying to increase the lateral length of the well. Which one has the highest return on investment?

A lot of the right people have tons of shares in this company now. It was enough money to bring in Paul Baay and half a dozen board members and management that have all built big companies before.

Baay rocketed TXP from 30 cents to just under 3 bucks in a year in a much more difficult country to work in. Guess who also listed shares on the AIM in london as well as Vancouver?

We need to and should be able to rocket our production up much faster now. We have a blue chip board with lots of money, lots of connections and lots of skin in the game. Gas is a hot commodity for a change and the next 4 years look great. Shame about the freeport fire crapp!ng on our summer but demand is still strong, LNG is still expanding later this year when Freeport compes back on line and by another 33% over the next 3 years so pricing should be solid.


i bought a little more at 80 cents today. The bought deal price is likely close to the floor this summer. Hopefully we get a few little tuck in acquisitions going forward.

This was the cheapest nat gas company in north america two weeks ago. Now it is the cheapest with a bunch of cash on the balance sheet.

[nozzpack]

Very well said....but all three wells began flowing to sales through it's 100 per cent owned compression facilities on June 20 at 2550 boepd Within a month or so, that additional cash will begin flowing into the coffers. In the meantime, gas flows will be optimized as cleanup ends   Let's assume 2000 boepd from this three well pad for the next 100 days until drilling

[TheRexmember]

I agree its not insignificant. It will take time to clear their accounts though. The drilling/completion/tie-in and payment process have a lot of delays built in.  Working capital can get really screwed up. as mad as I was initially at the size of the placement the company will have almost 30 cents per share in cash on closing. Not a bad thing to have in this market. I already own it

[nozzpack]

Not really. According to Sedar documents, which states... "The revenue is typically collected the month following production." So, revenues of those three wells , completed a month ago, have been flowing in at increasing rates for the past month and should now be fully reflecting lagged production..