Ann: Cadlao Oilfield Development Project, page-25

I heard through the grapevine that SGC did submit a POD to the DOE (perhaps this is what they are referring to in the webinar - submitted in early April). What I also heard is that there are problems with the submission, and most likely these problems are financial in nature (aren't they all?). There are only two ways to get rid of this hurdle with the financial department of the DOE: (1) a balance sheet that has a working capital = or > the POD budget (clearly this is not what SGC reported according to their AR 2021), and/or (2) they have gotten definitive funding (i.e. cash in bank) from either a bank or fund or a super cash rich farming to fork up the millions needed for the POD (if they did, this would have been announced with light speed reflexes). The assumption here is that they submitted a Cadlao POD....it might not be. If it is Nandino or Nandino East then the monies needed might be less (but it will still be around the 50 million dollar mark).

I also heard that nearly all at the DOE (hierarchy and staff) are most likely going to be replaced or asked to early retire. This makes sense since they have been quite ineffective for donkeys years. What does this mean for SGC? Further delays as no one will be willing to risk their necks in approving things unless and until the new Secretary is in place...which apparently can take more time than thought (there are at least three groups vying for their candidates to take that position).

Result: hard to believe they are going to book a rig this year. Much less the rust bucket Murmanskaya.