Ann: XST: Successful Placement and Increase of Borba Working Int, page-41

Many reasons as to why the raise/well interests have transpired.

SGC CEO is the largest shareholder. Have a think about that.

It's one thing to fund a US$5 million drill. It's another to be given a percentage area access to a ready made gas market, in a new potential province. From my understanding, they received low ball offers and didn't sell on the cheap. Stands to reason when you are the 'owner' and largest shareholder.

Your point about small cap companies giving 'arms and legs' is a bit misdirected.

Small cap companies don't have arms and legs to give. Very few have cash - i.e $5 million plus. They can only offer shares. And the last thing SGC needs is to become a sub holder of a sh.tty explorer.

SGC only had to issue ~77 million shares to retain interest AND fund the well. That's nothing!

XST might have a harder time processing their raise. But again, they have retained their interest AND funded the well.

And of course, you are dealing with people you can trust, and are on the same page in a JV.

Perhaps XST got an edge on this deal, but I think SGC will remind them of that when gas flows.

STX made a takeover offer for WGO late last year. It's getting messy over there, with WGO insistent they can call the shots. I don't see how.

This has been avoided in part with this SGC/XST deal.

Above is not financial advice and my opinion only.