Ann: December 2019 Quarterly Activities & Cashflow Report, page-105

It is my view that once markets settle down, but who knows how long that will take (= once the coronovirus effects have peaked in major market countries probably), we will get back to business wrt pick up in supply/demand, thus more rational thinking in all markets, including oil.

This has happened in all past corrections, major or minor - although the weaker companies with no capacity to raise cash will either go to the wall, or be takeover targets if asset rich. This happened in 1987, and 2008, and I followed the corporate activities in the following years of both meltdowns.

From a general point of view we are entering this period with most major countries in reasonably healthy financial positions (Italy will be tested!), and already the US, European and UK Central banks have supported the market with appreciable monetary measures to provide adequate liquidity - the GFC had a more severe liquidity issue from my understanding.

Obviously its not ideal, but there is light at the end of the tunnel. Wrt SGC I'm of the view the company can survive - whilst its got bugger all cash it has got strong financial support, and the board has a track record of operating on the smell of an oily rag!

IMO the reason its got strong financial support is because its Californian gas assets are superb, and in the hands of a more financial group would already have been tested, especially at Alvares and Borba. Borba, once drilled, will highlight SGC once again. Its just frustrating that its lost momentum the past month or so.

Timing is everything!