Swala got off to a great start last week and has drifted back to 23.5 cents late.
We have seen the 3rd report highlighting Swala’s undervalued potential, and are even trading well below land value, which excludes Gas & Oil potential, which is huge given nearby Oil & Gas reserves being encountered.
I did find last week’s selling quite strange in that each day we’d start off very well, and then drift. I am sure this was a result of some T+3 traders having to settle accounts. I did suspect this on Tuesday I think it was…..
Hopefully if unsuccessful, this will provide some stability moving forward, as short term traders, day traders and T+3ers might be more reluctant to play. Great if you’re a longer termer.
I also thought about there being some “chaser traders” selling out for a quickey somewhere else. There was a lot of good news from a lot of companies last Friday.
What we did see, was that there is a lot watching. Large buy orders were placed as soon as any volume was put on for sale. Let’s hope there was more than one interested party, which I tend to think there is.
The games did provide the anticipated buying opportunities and I believe we are off to a “clean” weeks start. Our volumes remain high which support the price moving forward IMHO.
OUTSTANDING LEVERAGE We have seen Africa Oil, add further gains on Friday, up another 10 cents and very nearly reaching back over $8.00. (further to the large jumps on Reserve Upgrade and Risked/Un-risked Upgrades earlier last week)
For us, that would equate to a price of close to ~$13.25 MC and fully diluted with ~150m shares on issue. Obviously we have some way to go, like find some Oil or Gas…..but this provides a great insight to our potential. Considering the amount of Licenses and area we have, with more to be confirmed short term hopefully.
We are trading at 14.7% of a Short Term Pre-Drilling target of $1.60 (as compared with Africa Oil)
We are trading at 3.90% of a Medium Term price target of $6.00 (given total discovered reserves of 200-250mil barrels only)
We are trading at 1.78% of a Long Term & reachable target of $13.25. (Excess of 500 Million Barrels discovered)
Looking at what I consider to be lowball reserve discoveries for these (suggested prices) prices, given regional and close proximity discoveries being announced regularly…….I really don’t see much problem in superseding these levels, and SWE accumulating over time a Multi-Billion Barrels Reserve Company.
With news close at hand I suspect…..Each piece of information is further building on the Swala Story and potential.
I believe that a rerate of catalystic proportions is evident…..just don’t know exactly when……But would put money a major increase from where we are now, well before Christmas.
If we were to shore up a defined 1 Billion Barrels of potential, combined from ALL of our acreage, and if we valued that 1 Billion Barrels at ONLY 10 cents per barrel, in ground, we end up with a value of 100 MILLION $$ MC…..or around 3 times our current MC….yet we sit on 23.5 cents per share :)
That’s TEN CENTS per BARREL in Ground!!
We can already assume we COULD have between 1.2 and 2.2 Billion Barrels in the Kenya 12B alone, which is why I see our POTENTIAL Price Targets, very easily within the realms of provability.
Add in Pagani, Kilosa-K, Eyasi-Wembere and a Zambia license or two or three…and you have the makings for a Multi-Multi –Multi Billion Barrel Resource.
Trading at just 17.5% above IPO Listing price…..and considering how much/many advances have been made, both regionally and direct company achievements I find this staggering the opportunity exists to be able to purchase at 23.5/24 cents.
Knowing what we know now and the advancements….how much would this list for today if in IPO stage? 50cents? $1.00?
SWE Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
