SGY have announced a placement of just approx 16m shares at 6.2c...

SGY have announced a placement of just approx 16m shares at 6.2c a share to raise just over $1m.

With a market cap of just under $13m this should give the company plenty of cash to fund its ongoing drilling operations, particuarly at SELH.

Taking into account the recent investor presentation the company estimates that should SELH work out and drilling is successful the SP would be between $0.30-$1.

IMHO there is a lot of potential in this stock to break through its highs, however this is contingent upon some good announcements.

This is what is hurting the SP at the moment. A lack of investor communicaton. If the management did some more work to communicate to the market and its own shareholders as to what is happening, how progress is going the stock would get more attention and it wouuldn't be languishing at the 6c mark.

At least we have some institutional support for the stock now so if their corporate adivsors managed to drum up sufficient demand based upon the projected CF's of their projects the longer term picture (6mths +) should look ok.

At the 6c level imho this stock is very undervalued.