SEA was a winner for many for a very long time. The timing of growth and $ raises gave us great results. The sale of properties were excellently timed. Then the "dogs" of the ME decided to destroy the worldwide oil market. I believe some 130 oils have gone bk. There is some 400 billion in capex that evaporated.
SEA made a mistake with its last acquisition and now we are pay a heavy toll.. If everything is bought @.13 and the raise of 80 million AU happens ( not sure there is an over allotment - which could be 10% USA system)
regardless we will have over 1.3 billion shares outstanding in a trouble market with low prices. This stock will never move and most likely they will need to do a reverse split. Looks and feels like a horror story.
Most of my oils have recapitalized and it has been painful for the shareholder.
So the 80 million AU is around 60 million US. So the pay down half of their short term debt and use the rest to buy extreme cheap asset it could be helpful. I mean really cheap. Still i cannot believe that it would make up for the over 50 dilution that we now must deal with.
I first got involved in SEA when there was only 165 million shares outstanding, but also seen the boepd go from 800 to 9 thousand or so ( my be wrong- just a fast guess.)
We go from 26 wti to 50 wti and SEA could not wait for a price above the 52 week low too dilute us.
very sad about my favorite junior oil.
SEA Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
