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Decent daily rise and malcy review of yesterday's news suggests more to come .....gla ;)
"I will redo my numbers shortly but they will not go down and the deal is significantly accretive and the company is more profitable than ever before. Forecasting the gas price is foolish but I for one am incredibly positive and this move has indelibly stamped the high quality management and I am sure that there will be more deals like this to come. SOUC is a keeper and will increase in value a great deal from here…"
Https://southernenergycorp.com/wp-content/uploads/2023/05/Southern-Energy-Corporate-Presentation-May-2023.pdf
Informative and useful field update
Thanks Bethany, yes another nice move on today's news. But US nat gas pricing is not helping this stock. I'm out for a quick profit. I've put my profits into FLEX which is something of an arbitrage play on US / global nat gas prices. Good luck all.
SOUC Target price of 40.00 and VRS heading for 2.00 worth a stock worth looking at too.....both can multi-bag.....have a look at the latest technical breakouts on share talk link below:
Https://twitter.com/Share_Talk/status/1660982677825294337
Up 15% in first few minutes on volume that is already close to recent daily average. Time to buy more before this goes higher!
Won't be a surprise if this ticks up further when TSX opens.
Very encouraging.
8,500 acres = 13.28 sq miles
40-stage fracks on 1+ mile laterals across two horizons will really boost production numbers.
Patience will pay here.
More to come.
Looks a good deal…..all we need now is some recovery of gas prices that should help the SP recover……
Great news and all blue with decent consistent 20k buys going through smart move well done gla ;)
Nice move 4k well done and great news today more to come no doubt very low mcap for such significant assets hopefully recent re bound continues gla ;)
Some nice chunky buys went through today and we're at 18.5p to buy. But wow, this is like a library here.
Looks like the SP finally retraced to Dec '21 lows. US nat gas is back in fashion for now. I just bought some SOUC at 17p after capitulating at 33p. GLA
Southern is a geared play on natural gas, prudently managed and with massive potential once
the inevitable upturn occurs. In due course possible many multiples from here for the patient
Significant re rate coming here gla ;)
Peru is not the best place to be viable I don't know why you would sell JSE and buy /keep PTAL JSE has a lot of news going forward AINMO
Anyone have access to the updated Cannacord note from today?
I like this:
"The 18-10 #1 City Bank well was drilled to a lateral length of approximately 5,744 feet with 100% of the lateral drilled in the target interval. The well was successfully stimulated with a 50-stage completion operation and is in early stages of completion flowback currently producing flowback water at 5% of load recovery. Southern does not expect to see peak gas rates until the well has recovered approximately 20% of load fluid based on historically stimulated vertical and Generation 1 horizontal wells in the City Bank reservoir at which time the Company will report on initial production. The Company is encouraged by the early results and looks to add significant net asset value to the reserve books in 2023 as no proven undeveloped or probable locations have been attributed to the City Bank zone to-date."
Should be a good cash buffer imo as drilling time halved. Hopefully we get a report of total 4000+ boepd production currently.
Cheap at GBP 22m market cap ( 18p) imo.
"With an average operating cost in 2022 of under $0.80/Mcfe, Southern has some of the highest margin natural gas assets in North America, which continues to benefit the business model and provide strong cashflow for the Company. "
"The Company is pleased to report the initial 30-day production rate ("IP30") on the first well of the 18-10 pad out of a total of seven wells drilled to date in the capital program. The 18-10 #2 Upper Selma Chalk well recently reached an IP30 of 3.3 MMcf/d, which is similar to the 19-3 #3 and #4 appraisal wells, "
That's roughly 560 boepd from well #2 added. And hopefully similar or better from the other 2 completed wells.
Total production as of January was 3,400 boepd.
Looking forward to the q4 results due in 3 weeks time.
Gas heading towards 1 at this rate, who would have guessed it.No rns since November dosnt help
I agree with you Neil. Using a discounted balance sheet approach, SOUC has a solid margin of safety, especially at the current market capitalisation which is incredibly low, given our large cash position and realistic growth prospects. Given the macro picture, this cyclical low in HH gas will be painful and just something we have to bear. However on the flipside, I wish I could enter the stock now at the current level! A great opportunity whilst there is blood on the streets (a favourite John Templeton quote of mine).
The share price is almost like a leveraged play on the HH gas price and like the rest of the sector we seem to have followed it down. We make 22% more cashflow per share for every $1 increase in HH. There are multiple catalysts from Spring / Summer to hopefully rerate HH gas so I remain cautiously optimistic.
It’s going to be another red day today. Investor’s are showing that their confidence in this company has been shaken. Tax year end is almost here, I am hoping that the company will release a RNS that says the gas is still flowing and there is money in the bank.
Its interesting that the video contained market-sensitive information regarding pausing the drilling. He did say "may" so they could still happen.
It makes sense to drill at a higher price so that prices could be hedged.
I am looking at buying in here. We just need to wait for the selling to be done. The problem with AIM is that when some one wants to sell there are no buyers unlike with large-cap stocks.