Ann: Philippines Assets Divestment Update, page-28

Be great if they could actually launch this back up to borba levels 7 - 10 cents 2 years
ago plus some dilution, it's a bit of a joke where the share price is atm. I can't see any news flow until PNOC hands over cash though as assuming they need that money for the next big thing!

They need to find a way to have a big win. The red sky assets at $30 USD per barrel cost are reasonably profitable but it's not a catalyst for a large share price rise. In theory at 256 per barrel it's $4-5m USD profit per annum I'm assuming the reason it hasn't looked like that is blue sky is reclaiming their sunk costs per each well intervention, each new capital expense that's needed up front but when / if they start to sweat those assets then that money will flow through to sgc.

Assuming the PNOC money flows through to nido / blue sky soon for the Phillipines campaign.

It's a good deal:

$2.5m USD up front and up to $8.2m+ per annum if the JV hits 5000 bopd+ with no risk. So I'm sure once the JV starts drilling hopefully later this year / early next it will generate some excitement but the reward to SGC is now much reduced so unlikely to set the market alight. Another nice bolt on.

I did note they said they are going through permitting for whatever the plan is with Borba. So maybe that generates a buzz blue hydrogen maybe.

The only thing other than some massive upside or buzz from Borba would be another elephant size gas drill in the Sacramento Basin. For me other than some other discussions they are having to farm into someone else's tenements / projects Alvares should be the aim. And / or use other people's money drop their interest in a few big ticket drills but get it happening.

If Alvares truly is an appraisal well with potentially 1-2 TCF it's worth pursuing even if they borrow money to drill offset against their income from red sky and the other gas sales in the Sacramento basin not to mention there's likely revenue to come next 6-12 months from Phillipines. Whether or not Gary Jefferey is an out and out energy price bull time is money it still looks like they are farting around atm. Even if they announce a Sacramento Basin campaign today how long until a suitable rig is available etc?