Member Info for viable

. . . still very much here but busy replacing windows, CH rads, electrics and plumbing.

I am satisfied in that circa 07/07 there will be some useful news. Obviously dissatisfaction is expressed over a heavily discounted cash raise. Even more so as 8Capital have been very upbeat with their $3 projection. And together with UK over-subscription there has to be criticism over why the cash was not raised here.

Although not conversant with modern 3G 5,000 ft multi 40 - 50 perforations there must be confidence over a 3-batch drilling formula. (Someone might be able to look up results from similar 50-frack laterals.)

It was understood the next Gwinville drilling would take place in October. "Accelerated" plans surely indicate something is in the wind. As the US branch is located in New Hebron, MS, it suggests there will be pre-October activity in Jefferson-Davis and not east Texas, Mechanicsburg or elsewhere . . . and/or an acquisition. "Organic" growth has been a mantra until 23/06 - with gas mostly unhedged - and it is reasonable to believe something has happened to hurry things along; it could even be the drillers saying they do not have any spare capacity in Q4.

The following link possibly omitted in April:

https://research.viiicapital.com/Report/Viewer?ReportId=UlAwMDAwODA4Mg==&ClientId=Q0wwMDAwNTA5OQ==

@ 15:15 - Yes. "soon".

A response and useful overview on corrosive salt water effects, certainly as a result of past experience: (a) I had salt pans down in Swakopmund and the Ford trucks would fall apart in ~2 years from new, and (b) an acquaintance at CSIR, Pretoria, regularly flew over to Portsmouth to advise the RN on hull problems. I learnt a great deal about the hazards.

We have two FPSOs in the stable. Their unknown durability/endurance factors accordingly limit my exposure to JSE. Marine insurance will almost certainly cover some requirements and Paul B will have a war chest to watch our backs.

My knowledge of stresses on bottom hull plating is limited to cursory inspection of a few ropy Greek oil tankers in Duncan Dry Dock years ago. It was said (erroneously) if we could stick a bowie knife into a hull the vessel was destined for the Singapore scrapyard. Three of them subsequently parted their towrope and ended up on the rocks at Oudekraal/Llandudno. See -
https://www.flickr.com/photos/8270787@N07/7882450320/
I would pass them daily on coastal training runs.

[I note your avatar relates to the cable car on Canary Islands.]

Observation: Interesting rejoinders last night.
re: AXL - I still keep an open mind on Colombia.

I have nothing more to offer other than the key phrase of a reply received:

". . . expansion programme planning and preparation are well underway . . ."

Having been investing for 25+ years I know enough to recognise when the market is generally bearish. Even i3E is unexpectedly in reverse gear. It is a time to hunker down.

https://www.perupetro.com.pe/wps/wcm/connect/corporativo/7318e1ef-aaa2-4c91-8313-7d2090cba5fa/Producci%C3%B3n+l%C3%ADquidos.pdf?MOD=AJPERES&liquidos

Not enjoyable viewing but we have had these regular retreats since 14p days.
July should be okay.

Nope, no exact details. But reassured. Unfortunately I felt some responsibility having plugged SOUC for weeks. Okay, I realise each is obliged to do their own research but individual opinion does influence decision-making.

The bb was quiet for months. Recent buying volume has grown daily.

In UK we have yet to comprehend the scale of 40- and 50-frack intervals on these very long laterals. The yields are exponential. The biggest failure with them is possibly losing a tool over 1,000+ft and being unable to recover it.

Wellhead pressures at Gwinville seem very high. Also, 3G was unknown to us a few months ago.

Have been on the phone to Vancouver and told to calm down.
So will shut up.
Planning well advanced.
Should replicate i3E.

@ 21:44 x 2 - Agreed on both.
Have written to the company but do not expect a reply this time.
There are guys heavily out of pocket.

@ 20:45 - I'd like to think you are right although first reaction was to write to management. We should not however overlook the company's history before the AIM listing. And we should remember the large number of new investors who have been buying in the past 4 - 6 weeks.

Revenues have accelerated, well beyond immediate requirements for the next handful of drills scheduled in October. Because of the heavy cash injection it might indicate a very near-term bolt-on acquisition is being completed. In effect four end-year drills into the relatively shallow Selma Creek chalk will not cost $47.5m. So reliance has to be put on an immediate substantial expansion programme. Whether the company's footprint will extend across to TX or OK remains to be seen.

Generation-3 rig availability is an unknown: they have to be booked quite some time ahead.

https://www.proactiveinvestors.co.uk/companies/news/985725/southern-energy-announces-plans-to-raise-nearly-c-39m-to-accelerate-drilling-program-at-gwinville-in-mississippi-985725.html

Nothing further to add.
TSX still suspended.
Resumption notice, when applicable, can be found on -

https://www.iiroc.ca/news-and-publications/halts-and-resumptions

. . . hardly welcome and totally unexpected in view of Atkinson's earlier pronouncements.

Investors who bought in @ +90p will be infuriated. Very poorly managed unless he has an acquisition in his sights.

And nothing I could see for any bonus inclusion for existing shareholders.

. . . and RNS is here.

https://money.tmx.com/en/quote/SOU/trade-history

Possibly no further trades today.
The last one for the morning was @ 11:37 ET.
Could be some news @ 07:00.

https://www.newswire.ca/news-releases/iiroc-trading-halt-sou-835846694.html

@ 11:38 ET (16:38 BST) News pending

27/09/21
"The Company commenced a hedging program which will result in approximately 50% of corporate volumes being hedged on a rolling 12 month forward looking basis. Currently through a combination of physical and financial swaps, circa 24% to 26% of forecast production is hedged through to the end of 2021, circa 22% hedged in Q1 2022 and 4.5% in Q2 2022".

[I had forgotten the detail . . . have yet to locate Q3/Q4 arrangements]

@ 16:04 - PANR . . . not recently but will do. Thanks.

@ 73.55p bid SOUC has performed well today.
The drop was overdone, and not for the first time.

Man-with-means: May I ask which other stocks are getting your attention?

With the new generation multi-fracks and their laterals I suspect we don't yet understand the implications: boepd yields are likely to improve vastly in e.g. chalk formations. The 8Capital expectation is understandable.

SOUC is in my locker and I remember pushing the stock hard when in the 30s range. Shall stick with it until C$3. For interest my other bankers are i3E and PTAL Have cooled slightly on IOG and JSE.

TSX solidly @ C$1.18 . . . and $1.50 could be the next stop on receipt of Mt Olive East results.

I fully accept we are in "bear" mode for the time being. Not fazed but have to acknowledge we may come unstuck on explorers/non-producers/unprofitable outfits. i3E should thrive although the depth of recession is an unknown.

SP continues to follow a well-trodden path: a climb to 107 - 110p and a now familiar retrace to 95p or below. It encourages consideration on trying to treat the stock for trading only. Or can we reach 140p before December?