It has been very quiet in terms of news flow recently but that is all about to change;
Production Testing of Kione92 feet of log pay with possible upside to 137 feet of pay.
GJ in his last interview 2 weeks ago said that testing would occur “within 3 weeks” (i.e. should be any day now).
If there are commercial gas flows there are nearby pipeline tap in points that could see revenue generated relatively quickly.
Oil Production AssetsGJ mentioned in the interview that they have other oil production assets in their sights and look forward to providing an update in the “near term”.
These assets are likely to be large scale to provide a substantial boost to oil production, as per the recent announcement;
“SGC and its partners actively assessing other complementary oil & gas producing assets in Canada and California that would
substantially boost production”
“Other opportunities currently being carefully assessed contain
larger scale production growth potential”
Production EnhancementsGJ in the interview said that other “exciting things” are happening in the Basin in terms of production enhancement opportunities and will advise when it comes to fruition.
400 barrels of oil currently being produced + more production oil assets being acquired to “substantially boost production” + production testing of Kione about to occur with gas pipeline nearby for quick revenue + production enhancement opportunities happening in the Basin = foundation laid for significant upside. Keep the faith, SGC is transitioning from an Explorer to a Producer with multiple revenue streams and is building a foundation for significant production revenue in an environment of rising oil and gas prices. AS GJ said there are not many Producers on the ASX and SGC will soon start to appeal to a different class of investor.
Limited downside at these crazy cheap prices, and blue sky upside as production is increased and the revenue comes through.
Exciting times ahead
GLTAH’s
