I'll try paint a positive picture:-1. Red Sky 256 bop/d...

I'll try paint a positive picture:-

1. Red Sky 256 bop/d assume blue sky resources now need to sweat the assets to pay for Phillipines drilling $40/usd ish profit margin. $3.7m USD per year ~$5.8m AUD when or if this actually shows up in the quarterlies it should be some sort of catalyst for re-rating the share price. I'm assuming the Phillipines wheeling and dealing plus blue sky optimising the red sky asset has hidden the return on this from past quarterlies hopefully due to other exploration funding cost I.e sustaining capital on red sky and buying the drill rods etc for Phillipines in example is all reasons this has been masked but at some point it will be revealed.

2. Sacramento 50 bopd equivalent ~$730k USD assume similar profit profile it should actually be more economical than red sky $1.1m aud. So in theory they are cashflow positive $6-7m aud even if you minus off lease costs and company admin it leaves something for exploration funding in theory.

3. PNOC actually hands over their fairly long overdue $3.3m USD for 20% of Phillipines drilling. I think certainty that the deal is done could be a re-rate opportunity for the share price. $700k usd up front $1.8m USD first oil H1 next year. If it hits north of 5000 bopd from the 2 well program $8.2m USD + per annum to sgc. That gives opportunities to drill Sacramento basin.

4. The long sunk cost for the borba well of $4.3m usd has a residual stored value when or if they can commercialise it somehow. They claimed easily flow at 3000 mmcf per day up to 5000 over time. Henry hub pricing is $2.64 usd and it's double that in Northern California. So it could be a conservative $9-10m per annum revenue to sacgasco when commercialised obviously need to minus off capital sunk into a blue hydrogen initiative.

5. Main game in town is to do what the company set out to do find some very exciting (near useable pipelines prospects in their Sacramento basin tenements and drill them) that's the game changer they need asap imo. Potentially bring in a downstream partner to help fund exploration for methane to hydrogen fuel stations or whatever who cares just get it happening.