SDX vs TGA - As c said, you are comparing apples to oranges. SDX has no cash, is raising highly dilutive capital (and a bunch of debt), with production growth ~18 months away (and subject to usual delays). Is offshore, with significantly higher production risk profile (vs relatively shallow, low risk, low cost onshore). Plus Arata is a piece of work - I remember his scummy large insider sells at Centurion just before they announced their wells were watering out prematurely - and "guidance" (aka fantasy) was slashed and the shares collapsed. WAY different from uber conservative management at TGA...
I wouldn't touch SDX - not when they pay 20% royalties to the vendors on the new production they are taking the risk (and suffering huge dilution) to develop. SDX shareholders better hope that this new purchase doesn't turn out like the much touted Kom Ombo disaster...
If you want VASTLY better value with similar production and development risk, I'd buy Iona (INA) long before I'd touch SDX. INA is trading just above cash with a bit of natgas production (that gets $8-$10mcf). Will get to ~8K boed exit this year when Staffa comes online (about 60% oil weighted). Will get to ~12-15K boed mid '13 when Orlando and Tyne NW are online.
Any reasonable comparison shows Iona is significantly better value than SDX. That said, INA needs to raise some cash to fund their $200MM capex program this year - ~2/3rd is expected to be coming from a syndicated debt facility (expect news in a few weeks) and the remainder is equity - could suffer ~100% dilution, but they'd be funded to get to ~$1 cash flow next year on fd post-dilution basis (vs current share price around $0.38). Thus even uber low 2x cf multiple implies a $2 stock (which would also be supported by about 25MM boe 2P reserves). Equity placement waiting on news of currently drilling Orlando horizontal development well (TD in the next week - logging to follow - a twin of the original Chevron vertical discovery well, so low risk) - this horizontal well is expected to produce ~10K boed gross when on production (INA has 35% WI).
I have a small position in INA right now, but am eagerly awaiting financing news to load up (and using my recent TGA sales to fund the buying). INA could go from ~1000 boed natgas to ~15K boed (60% oil) by mid '13 - run any comparison you like vs SDX and INA likely wins hands down...
AI
