RNS...21 Jan 2010 10:44
I tend to think we won't get an RNS today, 2pm is possible as they have issued prior to the Venture opening in the past, thats where all the action is right now. One post on DXE either for SE or DXE says 170K of shares went out in the last few minutes of trading. The simple fact is that we are now 25 days past projected TD date. You have to read that in whichever way you want, on the half-full side it's a bit beyond well problems, on the half empty side we have had no information leakage up to the last few days - tighthole. How reliable the recent posts are cannot be certain. If though, there is any truth at all in the rumours/posts, there should be a material change to SE value. A trickle of buys UK will not "light-the-blue-touchpaper" here but the Venture opens mid-afternoon, thats where we could get a 5-8c movement triggering a re-pricing here to say 14p. I think it will get a very detailed RNS to move us to fair-value SP near 20p+. I am a bit hacked off as with Breagh we got highly detailed RNS, they annonced logging results after TD then testing results, I think they even RNS'd TD achievement. One of the issues is that SE have to meet both Canada&UK disclosure rules, this may well result in more careful RNS drafting. If Breagh RNS standards were applied as Sterling Resources the operator did, we would have a good quantity of information to digest with enough to determine if this has the prospects of being a long-term hold. The important factor is the de-risking of the other prospects on-block, the market will want rates, good ones, but this is an exploration well. If we get anything more than 5MMSCF/d from a vertical appraisal that should be up-scalable to 20MMSCF/d+ production rate with a horizontal well. If there is enough payzone there added to reserves of a viable size these dolomite/carbonates can be hugely prolific due to the fractured/vugged nature. An exciting but nervous few days ahead folks. I also have not touched on the outside chances that this is oil rather than gas..... that would be massive.
BoLA, IMHO/DYOR - Geo
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