BILLION BARREL BONANZA, page-731

Hi GB, i would consider fair value for SGC currently to be around $50m market cap or 10c per share. I am gobsmacked that the market cap is still only $18m.

I mean, SGC is currently an oil producer with reserves and cashflow positive revenue coming in. And it also has a substantial exploration portfolio. By comparison a significant number of O&G explorers (not producers) with no reserves have higher market caps, for example;

ROG - no production revenue but a market cap of $48m

BPH - no production revenue and no NOPTA approval but a market cap of $39m

IVZ - no production revenue but a market cap of $85m

88E - no production revenue but a market cap of $404m

BRK - has production revenue and a market cap $85m

And with drilling activity expected on the Canadian oil assets and the Phillippines oil assets in the next 3 to 6 months i can see the SGC market cap going significantly higher than $50m or 10c per share.

Lets just say with infill drilling on the Canadian assets increases SGC share of production to 1,000 bopd.

In the Philippines at SC54a Tindalo acheived a maximum flow rate of 18,000 bopd. If SGC can maintain 50% equity and the drilling of a well achieves another 18,000 bopd flow rate this would be 9,000 bopd to SGC.

So in the next 3-6 months SGC could increase its production substantially to approx 10,000 bopd, and its reserves would substantially increase as well.

If the margin is $30 per barrel this equates to $300,000 to SGC per day or $110m per year. If you factor in 4 to 5 years of production into the shareprice it puts it up around $1.

And this doesn't even include further progress made on the billion barrel S58 prospect in the Philippines or the Borba hydrogen prospect etc

I stand by my claim that SGC has potential to be unicorn stock and peeps will look back at the current shareprice full of regret as it is a gift from the gods imo.

As always DYOR