Reality Check

Some food for thought regarding this company and its assets:

Despite the initial hoopla from the purchase of NIDO (when SGC share price zoomed to near 6 cents), SGC share price is at the low of the year. Why is that? Here are some Devil's advocate reasoning...

1. The NIDO assets are worthless. They always have been. SC 58 is a deepwater dud and SC 54 has been proven to be a failure. Tindalo and Yakal are a nothing burger and Nandino is a pipe dream. If they weren't then how come Bangchak, who had these assets for 10 years or more, did nothing about them? They certainly could afford to give it a try but they did not. So now a company with a market cap of just over 10 million is the saviour? Heavens to Betsy.

2. West Linapacan. What a load of b#%€&#s! How many companies have farmed into WL over the last 20 years. If you want to know the truth about WL then asked one of the locals. There is nothing there. I know at least 3 failed farmins in WL.

3. SC 54 B could still be unrelinquished. Meaning another issue for SGC to deal with in terms of obligations to the Philippines DOE. Note that SGC's asset map in the Philippines does not include SC 54 B (which is the deepwater part of SC 54). As far as I can research, SC 54 B is still NIDO's responsibility. That is, they owe monies to the DOE.

4. Everyone and their granny knows about Cadlao. It has been over marketed since 2006 and the minimum cost of a POD is 60 million. How is SGC going to fund it? With Blue Sky? Who are they? Do they even have experience in developing oil and gas assets? Manta failed miserably to get the funding for Cadlao (they had over 3 years to get it going). Everyone knows that Cadlao is a service contract that will expire in February 2024. How is this not an issue?

5. Finally, the deal with Manta....can Manta simply just walk away from a Service Contract without penalties? Can the Philippines DOE just let them off the hook without holding them accountable for the obligation of a work program and budget? And if not, who is paying the penalties? I doubt that the DOE will approve the withdrawal. And quite frankly they should not.

Happy New Year everyone!