I thought that the trading halt (much hyped) would have resulted in a funding announcement regarding Cadlao (SC6B), a proven resource with 11 years of production data (1980 to 1990ish) and with over 5 third party audit of reserves and a very well known POD that has been marketed from here to Houston ad nauseum since 2006. This would have been my first choice. Something does not smell right.
Instead they have a farmout to a an undrilled, unproven, unproduced resource - identified only via low quality 3D. Why did Blue Sky choose that instead of the more highly COS Cadlao? And an SC that is under re-evaluation, potentially could be revoked any month now? Smells like smokes and mirrors to me.
Nandino was a diversion for NDO since the failure of Yakal and Tindalo. Meaning, it was meant to prop up the value of SC 54A in light of the fiasco of Yakal and Tindalo.
Shucks.....I would have been more impressed if they got funding for SC6B. Or any sort of funding actually. Farming out is not about cash. It is about window dressing.
This announcement is not about funding and getting some cash. It is another attempt to prolong the inevitable announcement that they are not drilling anything in the Philippines this year.
SGC Price at posting:
3.1¢ Sentiment: Sell Disclosure: Not Held
