The birth of a very profitable, sustainable growth junior oiler.
Two years in from a standing start with 500 shut in prod and a few hundred producing. Now nearing 3000 with near 80% oil. A strong balance sheet with loads of cash available to fund rapid growth. They should be able to add 2000 bopd a year and no need of raising money until they decide to open up second play. That will be point I'll take profit. I think, let em plough another $50 mill into the Keg and see what kinda share price I get and look to exit. That is the money, the Keg. Quick, painless and over 250K recoverable for a $2 mill hole is about as sure a thing as I have seen. Gilwood play and Exall is comparable. Better team here with deeper pockets going in than EE has. SOG got in cheap, got a good asset and have hit paydirt.
Watch for the latest well results, it sure looks like a bit of money is betting the well was good, judging by the recent uptrend on volume.
Enjoy the ride.