As a former shareholder of Innaminka Petroleum (INP) I was taking a quick look at their latest announcement of proposed fraccing etc. and preparations for production at their Flax project. What interested me is that they are "projecting" a target production rate from the field development of 1000bbls/d.
SAE is already producing 1350bbls/d and has been inproduction for what?...1 year?, albeit at lower rates. SAE's infrastructure is already established at a capacity of 2000bbl/d, they have ample high impact exploration in the pipeline, and are producing plenty of cash right now. OK, one downside is the natural decline of their production...but without going into detail here, I believe there is a plan in place to address that.
The market capitalisation of INP is above $150m! That compares to SAE which is around $85m...What am I missing here? No wonder people are calling SAE a "buy". On the strength of this "back of the envelope" comparison, one would have to wonder why you would invest in INP in preference to SAE.
regards DF
SAE Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
