Posted on the SGC thread - Summary paraphrase of Gary Jeffery good oil conference presentation (remember this is post Dempsey TD):
"We've only just begun"
" I assume that youre here as investors looking for companies that are creating events that can move share price a long way and make you serious money. In O&G companies a platform of production topped up with high flow rates from high reserve discoveries will move a share price a very long way and quickly. My premise today to you is that asx listed SGC Sacgasco is your target company"
"I think we have the lowest cash burn rate of any company on the asx"
"$2.5m cash which for us is a lot of cash in the bank"
"Ive been in the oil and gas business for almost 45 years and have been associated with big gas dicoveries world wide and I sincerely believe that what SGC has uncovered in the sacramento basin is truely world class. On top of that ill say its the best ive seen in an onshore location given the massive local market/infrastructure.."
Talking about Drilling Dempsey: "We were pretty concerned about the amount of gas we would encounter here so we actually set up an emergency flare soon after tunning the 9 & 5 inch casing just incase we took kicks of gas that we couldnt handle...(pause)...."
"Discipline and conservaticim were very much to the fore and at times some found that a litte frustrating but its been a key component of the project to date, tripping, doing the wiper trips, circulating the gas up *and we've had a fair bit of gas* "
"as the guys on the ground say, this has been a gas'sy well"
"we've certainly seen some reasonable looking sands under the microscope and we already know Dempsey is the largest structure on the eastern side of this basin"
"We'll connect to that meter station once Mr Buffet of PG&E has sampled the gas and confirmed and given the all clear to put it in to the system. I dont expect that to be a problem based on the gas chromatograph readings we've been getting I think we've got a nice clean dry gas here just like we produce every day then we will sell the gas earning revenue"
"We plan to develop the Dempsey structure, its a pretty big structure afterall. We can switch gas meter stations for when we drill new wells. Permitting a new well is just a 30-40 day process here"
"Our results have shaken up the local industry which is good to see as theres lots of people being employed which is good to see"
"Our next high impact project is to drill Alvares where we have 1500m of gas shows when it was drilled in 1982 drilling for oil they just walked away from the gas, 500m of the upper gas shows have never been logged....a wonderful problem for us to go and investigate"
"Its a big structure at Alvares 2+TCF"
"what is there not to like about this equation. Massive market, motivated management, simple focus, good investment opportunity...The excitement is building....now time to return to the theme of my presentation, we've only just begun"
6
XST Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
(20min delay)
