I can see where you are coming from with your post. I do think the SEA/TXN merger has been a win/win for both groups of shareholders. As has been stated in the raising presentation, this extra capital is going to give SEA the opportunity to activate a very aggressive drilling program, and the main target is the Eagleford. This makes sense to me, drill the eagleford which has a high success rate with good returns, increase cash flow and reserves, and then concentrate on their other leases in a more aggressive manner.
Nobody knows if they will hit 4000bpd by the end of this calendar year, and with no disrespect, if you are looking for guarantees, this is definitely not the right sector in which to be investing. I can honestly say that 12 months ago I was very concerned with my investment in SEA which is substantial. Fortunately the sale of South Antelope and the merger with TXN has given SEA the fundamental floor to move forward and I am very comfortable with this position now.
This current share price could move in a very tight range over the next 3 weeks. Overall market sentiment for resource stocks is not high, but I do think that SEA is one company listed on the ASX which has a high probability of increasing market cap substantially over the next few months and beyond. Just need to patient.
SEA Price at posting:
88.0¢ Sentiment: LT Buy Disclosure: Held
