Borba is expected to have high pressures in the target reservoirs, which should result in high gas flow rates.There is access to gas infrastructure and a major gas market in California, which is seven times larger than the Western Australian gas market.
Sacgasco mentioned in December 2020: Interest from third parties wishing to participate in the drilling of Borba is significant and we will finalise a working interest structure that maximizes leverage for Sacgasco shareholders first and foremost. (they ended up choosing XST to participate). --- Borba has very high expectations and the results ARE NOT ALREADY PRICED IN. Many big players and instos wait for confirmation and exact numbers before jumping onboard. We are very lucky to get in now at these prices. If anything was already priced in then this would be a 'risk free' investment.
From the company: Sacgasco is of the view that the size of the prospects in California have the potential to supply both domestic Californian natural gas and export LNG markets, including those in Asia.
That is HUGE , more upside than you can possibly imagine (if everything goes to plan )
Do you really think that they will find no workable gas after all the effort in the highly sought Borba well ? They have been working very hard for a very long time to prepare for this , and its all happening now.
Please DYOR this is all my opinion from my own research.
SGC Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
