Hi
@peekaye,
SXY have said there will be no CR - this is because they expect the financing solution to be debt funding. (So no it doesn't mean that they have secured it, but they expect to secure the financing solution by mid 2018).
I also am heavily invested in SXY, because of the significant potential upside
I have tried ringing and emailing SXY. They have previously been very forthcoming and have replied to my emails in a timely manner, but they went cold turkey when I asked about the well flow rates (compared to the P50 curve), which resulted in the next follow up email (that I shared on here).
I am not too concerned with downside, as the 2P reserves we have of 120mmboe would become attractive to a potential suitor if the share price were to sink. This is the reason I still hold (and have the "hold" sentiment).
We could well be on the brink of reaching financial close on the financing solution - it could come by mid 2018. If this happens kudos to management, and we can look forward to the stepped increase in production and earnings. I personally, can't see financing occurring prior to execution of gas sale agreements (which have not been disclosed, despite being due mid 2018).
It is always worth at least considering the risks as well - the main one obviously being that financiers are not happy with the well performance, which has resulted in the delays to execution of these gas sale agreements and the project.
If these teething issues that have caused the sub-par well performance could have been prevented - it points to us requiring a better operator (not one that is experimenting with the well performance that financiers are looking to lend against).
As
@Elliot5 has pointed out, there is a reason that this is flying below the radar. Ian Davies needs to come clean and disclose the information about the business that he is running on our behalf. If he is out of his depth in being able to deliver to conservative timelines, then it is time for SXY to be acquired or for a new management team to step in.
