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Thanks for your latest Viable. Always appreciate you sharing your thoughts.

The company seems to have used a broker note from the main underwriter of the placement to back away from the acquisition story and to give emphasis to an accelerated drilling program. In terms of use of the money raised that seems fine. However I'd like to see the SP back above the placement price soon other to reduce the risk of II's selling off from impatience and reinvesting elsewhere. Are they struggling to secure a drilling rig or natural gas piping to upgrade the infrastructure? If not the radio silence seems strange.

Lack of news since the placing is now eroding the recent recovery in S.P. The H1 results are due later this month but the impact of apositive RNS is reduced each day that goes by with continued silence. Surely an update on Gwinville flows could be given to underpin current S.P.

Bigger fish circling?

It certainly wouldn't surprise if that is the case. By having an exchange with Kistos, SQZ has signaled that it is 'in play' as far as potential mergers or acquisitions are concerned. The big boys have money burning holes in their pockets and will surely be interested in picking up some European NG supplies at a time of record high prices.

Would seem to bode well for a positive update that can't be far off now. A few potential catalysts for share price include quarter earnings announcement, update on Gwinville flows, confirmation and details of Q4 drilling plans. With Nymex spot prices lose to recent highs and Freeport resumption before year end there are plenty of potential positives. Topped up yesterday whilst we are still at placing price.

Higher than average volume drove tsx up yesterday. Nymex spot price up again today and looks to be heading back above 9. Maybe an update on Gwinville to coincide with TSX opening today?

Nymex spot price back above $8. Souc's next revenue update going to look mighty good.

I think confidence has been dented by them not following through on all the pre-placing talk suggesting an imminent acquisition. The emphasis in the recent 8cap note had switched to a possible merger/takeover and an accelerated drilling program. I see the SP edging back towards the placement price, but a step change from there will require clarity on plans and/or positive updates from Gwinville. My sense is the necessary RNS's are not far away.

The lack of communication since the placing has been frustrating to say the least. The broker note issued by 8capital (main underwriters of the placing) on July 8 seemed to de-emphasise short term acquisitions and hints at prioritisation of an accelerated drilling programme.

We can't be far away from an update on the Gwinville Wells so I'm hoping that may be combined with a bit more transparency on forward plans.

In the meantime it is good to see the SP trending back towards the placement price and I'm hopeful it will go higher than that when they do reveal plans for Q4.

I'm surprised by the lack of an emergency repair plan for Freeport. Almost like they want Putin to inflict maximum damage to the global economy.

If it stays there it should see the SP edge further back towards the placement price before the end of the month. Follow that up with positive news on flows and Gwinville earnings and we should be set fair for a strong Q4.

Encouraging signs that sentiment might be turning positive again? A return to the 55p placing price by end July would be nice especially with lots of positive news potential through Q4.

@Viable.

I'm sure it won't be news to you but are you aware that a huge chunk of IOG's shares are held by administrators?

Thanks Viable.

I can understand a desire to accelerate drilling and if this is now prioritised over inorganic growth so be it. SOUC could be more transparent on this and if they provided the clarity I have suggested ismissing it might help stem the bleeding of the SP.

For what it is worth I would be surprised if we do not see a significant revision of futures pricing around the time of the Freeport resumption. European prices are almost 3 times higher than those in the US. The disconnect won't be sustainable in the mid term.

The silence from SOUC remains a concern. To have said nothing whilst the SP continues to wilt post-placing is a significant concern and erodes trust.

Thanks for digging Viable. Look forward to your update!

@Harka.

It isn't just about irrational short term price movements. Those happen all the time. When they happen so soon after a significant dilution at a heavily discounted share price, they suggest a connection. In spite of your take on it, perhaps their message isn't getting through? I personally feel that communications are inadequate (frequency) and sometimes contradictory (content/strategy).

I don't think.you can blame shareholders for assuming that the discounted placement price was to be mitigated by a rapid/immediate acquisition, as is often the case in such circumstances. We have not seen an immediate acquisition so doubts are raised as to the identification of acquisition targets and timing of the placement. Such doubts are compounded when a subsequent RNS muddies the water by introducing the prospect of 'mergers' a message taken a step further in a note from the lead underwriters of the placement that emphasises the prospect of a takeover of SOUC. The same note discusses the use of all of the placement proceeds in Q4/22 to support an increase in drill rate from 15 to 21 wells per year as a catalyst.

Perhaps the share price is dropping to reflect the doubts over timing, implementation and prioritisation of corporate objectives? For example, I have significant doubts that I would see the value of my investment restored to post-placement levels by a takeover of SOUC.

I'm happy for you if you think the road ahead is crystal clear but it seems that many PI's have less conviction and are understandably upset to watch the value of their investment diminish on a daily basis whilst the board sit back and watch. In my opinion there is a pressing need for them to restore confidence and slow or stop the drop in SP.

I do hope you are right about the S.P. Neil. If it hasn't recovered before the Canadian placees can sell I can envisage a bloodbath.

It would perhaps make sense for them to issue a statement to the effect that they do not see any justification for the drop in SP and that they are pursuing their strategy on time and to plan. If they could add that they are confident that their strategy will restore and enhance shareholder value in the near term it might have the effect of stemming the bleeding. A verbal tourniquet so to speak. I can but hope that they are busy with other matters that will be more effective, but silence is draining my faith.

I wonder how much we P.I"s have lost?

At least placees will have had some form of breifng as to what they were buying into. We were not even afforded the courtesy of a 'heads up' on the dilution by a discounted placing.

I don't think it would be too much to ask that we are now given clarity on short-term drilling plans, or for a non-specific reaffirmation of intent to speed growth by acquisition.
It would also be comforting to see some insider buying at the now depressed (and depressing!) share price.

Instead we have been treated to radio silence whilst we watch our investments depreciate by the day. The manner in which this has been handled betrays a contempt for private investors. A very poor show indeed.

Good morning Viable. Trust you are well!

The ship is becalmed, the crew are having a siesta and appear happy to let it drift on the currents of the market, albeit in the wrong direction.

This is going to take spectacularly good news just to get back to the placement price never mind the pre-placement highs.

As always any insights you can garner will be gratefully received.

Respectfully disagree Neil.

In many instances where placings have taken place an acquisition occurs simultaneously or very shortly thereafter. With Souc we have gone from a clear assertion that the placing would be used for acquisitions to now the lead underwriter implying that the money will be used to accelerate drilling in the hope of a takeover of SOUC!

Communication with existing shareholders was non-existant ahead of the placing and now appears to be coming via intermediaries and now talks of mergers and takeovers of SOUC! Do they have a consistent strategy to recoup shareholder losses? Why have a placement if they didn't have an acquisition in mind and agreed in principle?

I wonder what will happen in a few months time if the SP is still lingering below the placement price, there is still no sign of any acquisitions and placees are free to sell? Has investor relations gone on holiday or don't they care? They seem content to just watch the SP drift lower and it surely could not have been envisaged that it would be trading at a 20% discount to a discounted placement price! It is remarkable that they have made no attempt to arrest such a dramatic drop in SP.