We must be getting pretty close to the stock price reflecting cash on hand. This is simply idiotic and sets up the small shareholders for a bath when a buyout offer comes which I believe it will. So, the question is whether to buy more now, wait for a price of about 1.60 or just get the heck out of Dodge.
chopper -- Wish I was still in the industry ... if so I would probably hear through industry peers what SOQ's situation is, such as are they actively looking for a buyer?, or is a buying actively looking for SOQ?
A number of US gas industry companies are in a bind, and they are also ripe to be picked apart if they did not make the correct decisions based on the gas numbers SOQ should have been looking at. I hope this doesnt cause a whipsaw price situation in the industry, but there is plenty of room to move up without hurting NG industry.
At this point the industry is beginning to be carried due to private investors embracing NG since our present US administration has not embraced NG. Westport, CLNE, FSYS, WM, and a number of states are moving on their own to utilize NG, and hopefully this will slow down the drop of NG prices. LNG's permit to export NG is not in the US's best interests since it impacts national security. Getting $18/kcf by exporting to Asia, or Europe will only make the US reply on imported crude more than we need to etc ... regards
great summarization DV and it is a shame this has taken place. There is no time to waste now, changes must take place immediately, one thing we do have is cash and for now is a savior for SOQ. The first place to start is removal of this BOD they are the ones responsible for over seeing SOQ and they have dropped the ball BIG TIME. Hiring this management team is looking more and more like a mistake and it pains me to say that especially since SOQ a year and a half ago was on a terrific recovery path. The 50 million in cash puts SOQ in a situation where a Vulture investor will swoop in with a low ball bid sub 3 and make millions when they institute the needed changes that this board has neglected .
I agree that Zarat was a successful prospect and probably came in at or above the predrill EUR (above the risked case for sure). Also on the block there are some very interesting outpost leads based on very interesting seismic which SOQ presented online. These prospects look good structurally, and have trap closure as per the limited seismic SOQ presented.
As a geoscientist, it sure would be interesting to see them drilled (assuming reservoir parameters are understood). If they are higher on structure, maybe they might have richer hydrocarbons -- would have to know what the offsetting on trend fields look like. They are in the same productive formations as offsetting fields. Again, interesting via the limited data SOQ provided. Regards
it is a good asset held back by the turmoil in Libya if it was 100% Tunisian it would have sold last year . if we could walk away with 75 to 110 mil I would be happy but think I am dreaming.. As to the finalization of any deal IMO the Rig to drill the next well will arrive before the deal is inked .. At 1.90 WTF
Any deal for Zarat is not going to be easy nor quick. Although I believe it's a valuable asset to own, we have to realize that any potential buyer is going to have to deal with both PA Resources acreage as well as SOQ's. Also 2P and 3P resources are going to have to be worked out, as well as placing a value on the remainder of the Joint oil block potential. And finally, the respective countries are going to have to agree to any sale - I suspect the PSC gives those countries the right of first refusal.
My opinion, which is only that, is that if a complete sale and disposal of that asset does occur, it's going to be at a much larger dollar amount then what most here believe.
Yes but both missed the boat not long ago for a merger/stock swap/buy out. POU and TET have been taking a beating lately. The past 6 months both stocks lost over 26% of their value, which makes a deal for SOQ more expansive now. So IMO if Riddell didn't pull the trigger few months back, why would he do it now? I am not sure now that Riddell wants SOQ even at $2/sh. The big question is how much interest ZARAT generates and for how much? The longer we wait and the worst it gets since a deal must be made by Sept 2012 if I recall.