SOGC isn't tracking oil.
While there is NO DOUBT that collapsing oil hurt SOGC, what is hurting them now are the questions/rumors of what Lazard will guide them to do.
Personally, I'm concerned for current shareholders. My concern is that Lazard will guide them towards a share offering via shares, warrants, or convertible notes in lieu of an asset sale.
The assumption is based on the fact that when oil recovers, and it will (long OIL), that oil field assets will recover lost value and when that value recovers, dilutive damage from debt offerings will be minimized.
So you see, it's better, in Lazards view, to harm a share price that may recover instead of selling assets which once sold, cannot be recovered at a lower price than where they were sold.
It's my belief that the pressure we've seen on SOGC (keep in mind that in the trailing 5 sessions, SOGC has lost 40% of its face value falling from $0.1290 to current, real time prices of $0.0735) is a direct result of rumors that a dilutive event is coming.
SOGC is a fun stock to trade. I personally hope that they can right this ship. I believe that if they do, SOGC, with their ever increasing revenues, will see a share price recovery once oil and energy recover.
In that sense, if they resolve their debt issues, SOGC will track oils recovery.
For now however, SOGC is not going to track an oil recovery because the threat of dilution outweighs any bounce in oil/Nat gas prices.
