The loss of so much acreage certainly limits "blue sky" potential.
That acreage has been the jewel in their crown - why the sudden urge to get rid of it for a pittance - particularly while they are still well in the black with cash reserves and oil prices are trending upward????
This needs to be watched closely - though I have no reason to suspect foul play - there are many precedents where directors have raised money at IPO to buy a tenement, found they have a great resource, and want to keep it for themselves (ie not share with the mugs who paid up at the IPO) - so they sell the tenement off to a third party for a song - then buy it back in to a new private company related to the directors (private so the on-sale is never heard about - commercial in confidence). SEA do not need to announce the on-sale of this acreage by the new owners so who knows who may end up owning it!
If, for instance, any of this acreage were to find its way back into the hands of the directors or related parties at these prices - maybe some time into the future - that would certainly warrant a criminal investigation.
Again - not implying this is the case - just puzzled why they would do such an apparently poor deal for shareholders hen they are not in need of the money - and when something smells fishy it sometimes is.
makes me feel happy to be free-carrying now after recently unloading a few bought about 4c.
SEA Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
