SL1 0.00% 0.0¢ symbol mining limited

great timing or great planning, page-2

  1. 896 Posts.
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    Hi all, my first post on SWE.

    Recently had to sell out my holding pre - CR for a break even.
    Hated to get outa the stock,but forced to free up some $. When the CR was announced I thought I had pulled the right rein {All previous CR's in about 5 of my stocks had resulted in dilution and a lower SP post raising}. However, being SWE {I stock that I have liked for a while}, they managed to raise at a premium. So, poor timing for me there but on the theme of this thread, hopefully I'm planning for the future.....

    I have held FAR shares for a few years now {Mainly because of there exposure off-shore in Kenya}. Their market cap is 95m today with about 2.4 billion {BILLION that is} shares on issue.

    Now, they have a few other assets in play {A drill fully funded from a farm-in in Senegal}, expected to be spudded 1st Qtr 2014}

    They have a block off-shore Kenya awaiting a farm in also}. They have about $20 million cash on hand. Currently that have triple the market cap that SWE have. Well, admittedly a spud is probably imminent within the next 3-5 months but I think SWE's assets are far superior. We have about $10 million cash on hand which at least covers the seismics for Kenya and Tanzania to my understanding}

    Maybe our first drill is still 12 months away but simply put, I believe the OIL is ON-SHORE Kenya, there is certainly a heap of gas off-shore Tanzania and maybe off-shore Kenya does have gas or even oil. I think the EARS is proving hugely successful, with big basins offering huge BOO in place. Tullows' success in the eastern part of the Rift recently, showing some of the huge potential on offer.

    On shore drilling is SO much less expensive. 10-20 million I think to get to a TD of 3000 meters or so v maybe 80 million -100 million for an off-shore drill. Can a company get any better joint venture than with a crew like Tullow in their {hopefully} first spud in Kenya {south of the billion barrel discovery made recently further north along the EARS????}.

    From previous ann we were informed that a block in Tanzania had some of the same characteristics than that recently discovered basin {You know, the one that looks like it got 1 billion barrels OIP to the north of us in Kenya}, only that our block had a few basins much bigger.

    Now ALL the licences along the EARS have been given out, they tell me. There are NO other licences to be had {at least for the foreseeable future}.

    Tullow has 10 or so drills coming up over the next year. Hopefully 12B will be one of those, and hopefully based on their current results more oil is found around us.

    So I have bought back in at a 20% premium of when I sold. I just believe that on a fair value basis SWE should be equal to Fars' MC of 90 odd million. If not now, then surely sometime pre-spud of 12B, that may well be a year away however. Hopefully some more recent news of awarding of Zambian licences, further positive seismics and more oil being discovered around us will have a nearer term impact on the SP.

    My opinion then; Undervalued relative to its peers.
    Glad to be back on board. Will continue to buy as long as it is below the MC of its relative peers in the region.

    Cheers GLTAH.
 
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