I believe the upcoming 2P Reserves report will be a game changer. All their wells in  H1  2012 exceeded expectations and they were very oily. According to the company in Q3 2012 report, the average IP-30 for their wells in beaverhill  lake is 500 bbl/d  excluding the natural gas. I estimate the total average IP-30 for their wells is around 600 boepd. 

SCS drilled around 10 net wells in H1 2012. Assuming a decent  400 Mboe/well, it gives around 4 MMboe from these wells. Add this on the existing 11 MMBoe, and you get something around  14-15 MMboe (80%  oil  and  liquids).


Let's say  14,5  MMboe.

14,5 X  $20/boe = $290M

290 -  90 (bank  debt) = $200 M (estimated   market  cap)


The  current market  cap  is  only $40M. The  valuation gap  is  huge  and  the  risk/reward is huge  too.

The  numbers  speak  volumes.

However , the average valuation for so oily 2p Reserves is around  $25/boe. Do your dd to confirm.