Excellent recap PP. It just goes to show how ludicrous the 18m...

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JamesFlorida

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36

02/11/21

19:47

Post #: 57266057
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Originally posted by Profit Prophet: ↑

Hi GB, i would consider fair value for SGC currently to be around $50m market cap or 10c per share. I am gobsmacked that the market cap is still only $18m.

I mean, SGC is currently an oil producer with reserves and cashflow positive revenue coming in. And it also has a substantial exploration portfolio. By comparison a significant number of O&G explorers (not producers) with no reserves have higher market caps, for example;

ROG - no production revenue but a market cap of $48m

BPH - no production revenue and no NOPTA approval but a market cap of $39m

IVZ - no production revenue but a market cap of $85m

88E - no production revenue but a market cap of $404m

BRK - has production revenue and a market cap $85m

And with drilling activity expected on the Canadian oil assets and the Phillippines oil assets in the next 3 to 6 months i can see the SGC market cap going significantly higher than $50m or 10c per share.

Lets just say with infill drilling on the Canadian assets increases SGC share of production to 1,000 bopd.

In the Philippines at SC54a Tindalo acheived a maximum flow rate of 18,000 bopd. If SGC can maintain 50% equity and the drilling of a well achieves another 18,000 bopd flow rate this would be 9,000 bopd to SGC.

So in the next 3-6 months SGC could increase its production substantially to approx 10,000 bopd, and its reserves would substantially increase as well.

If the margin is $30 per barrel this equates to $300,000 to SGC per day or $110m per year. If you factor in 4 to 5 years of production into the shareprice it puts it up around $1.

And this doesn't even include further progress made on the billion barrel S58 prospect in the Philippines or the Borba hydrogen prospect etc

I stand by my claim that SGC has potential to be unicorn stock and peeps will look back at the current shareprice full of regret as it is a gift from the gods imo.

As always DYOR

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Excellent recap PP. It just goes to show how ludicrous the 18m cap is for our company and how it will only become more and more obvious that it has been 'held back' for reasons unknown...such as those seeking to buy in. If you think about interest rates how inflation is going up yet we print money and buy bonds that then has the effect to push down interest rates from their real prices.....Such is the market and I don't let it get me down - just try to profit from overlooked opportunity when there are no bargains anywhere else to be had. No point buying real estate and most stocks are already fully priced. This is such a strange little oddity where the market cap takes no account for the profit or the potential behemoth in the Phillipines. Hence it can only be that someone has a reason to hold it back to buy in. It is legal for the government to artificially hold back interest rates to suit their own agenda for borrowed money as well. Kerry Packers strategy at the casino to get and then double down until he finally won. Deep pockets control markets.

SGC Price at posting: 3.8¢ Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

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