From my understanding, the SPP closes on October 18. If this is so, then the possibility of a slight (as long as it is only slight) delay in drilling could be a blessing.
When a SPP caps a price (as this one clearly has - ie. why would a new investor pay 25-35% more than the SPP price as you simply can be burned by existing holders selling at these profit levels), a spud right on the closing date can lead to a very low SP platform. In this case, the pre-spud could have started around 5-5.2c. By a possible delay, the scenario can improve.
Everyone knows that drilling is imminent. The potential rewards remain. The bonus could be that no more shares are available at 4.5c - now there is only one way to get on board and that is at the open market price. As punters realise this and the focus turns to drilling, momentum can build.
There is no guarantee that this will be proved right but I'd be happy to see a 2 week pause after the SPP deadline before the drilling build up. Sure, patience is required but the rewards might well be worth a tiny wait.
Happy to accumulate at this level.
SGY Price at posting:
$1.25 Sentiment: Buy Disclosure: Held
