major oil project

SGY's oil project announcement today has added another major upside project to an already impressive portfolio.

On my calculations the 35 million barrels of oil would equate to around $200m of value to SGY after assuming a recovery factor of around 40% (ie only 40% of the oil in place will be recovered) then taking an equity interest of around 60%, and then assuming an net present value of one quarter of what the current oil price is. This is a very conservative approach but certainly gives you an idea of what this project could be worth.

This company is going places !