Welcome 'Dman1983', we are glad to have you here...
If you are interested I'll give you & any other interested parties a brief run-down on SIOR. You should know up front that I own quite a few shares (for me), so I am obviously bullish on SIOR & potentially bias - though I like to think of it as optimistic...
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Red Flags, Stop Signs, Reasons to use Caution:
1] SIOR is not current with the SEC / Not a Fully Reporting Company
2] SIOR very rarely puts out Press Releases & rarely updates shareholders in any way
3] SIOR voted to raise the A/S in 2010, but just got around to doing so about two weeks age... A/S increased from 200MM to 600MM shares.
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Reasons to buy SIOR:
1} SIOR controls 23,000+ acres of prime Mississippian Lime Reserves. Recent transactions in this play have suggested that the value of Mississippian lime Leases are between $1,000 & $4,500/acre depending on the proximity to the play's sweet spots.
2} SIOR's CEO is also the majority interest holder of Cactus Drilling which is the largest privately held drilling contractor in North America. Most of Cactus's Work is in and around Oklahoma, making our CEO as experienced & deeply rooted in the Mississippian Lime Play as one can possibly be.
3] Prior to February the 25th, SIOR's website read, "Superior is poised to commence new horizontal drilling as early 2012." The website was changed on the 25th to read, "Superior will commence horizontal drilling in early to mid 2012." I know that this change is not equivalent to a Press Release, but it is certainly better than nothing.
4} Considering all controlled acreage in both Oklahoma & Kansas, SIOR has an estimated 36,000,000 to 64,000,000 bbls of recoverable reserves (I know that is a big spread, I'll let each individual do their own approximating, I use the lower end for all my calculations).
5] In the past, SIOR Management has put out Press Releases that were very short, concise, & truthful, even for very negative news (such as not having the funds to pay for their financials being audited). Such brutally honesty & straightforward Press Releases, even when negative are refreshing here in penny-land & have led me to believe that SIOR management are honest people.
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Speculation:
I am of the opinion that SIOR will assign Cactus Drilling a set amount of shares as part of a Joint Venture deal & in return, Cactus will develop SIOR's assets for them. This transaction will also greatly increase our CEO's ownership in SIOR.
I believe that SIOR is tremendously undervalued. The reasons that we are buying into SIOR so cheap are the 3 'Red Flag' topics listed above along with financial issues encountered in mid 2011, as well as a 2011 legal dispute with the Weiss Family Trust (majority shareholders of SIOR)... All of these reasons worked together to drive SIOR's share price into the dust back in 2011 - & it has never recovered...
I feel that after a few wells are drilled we'll be trading equivalent to OEDV, who has a comparable footprint in the play, but is not in the hotspots of the Mississippian Lime like SIOR is...
