Superior Oil &Gas Company (fka SIOR)

[geopressure]

I’m writing this to make a sticky…

If you are looking for a good undervalued E&P to accumulate, may I suggest that You look at SIOR. Myself & a number of Oil & Gas Professionals who post from time to time on SIOR’s board feel that SIOR will be the next OEDV because their are many similarities between the companies. SIOR already has more than double OEDV's crude reserves.

Before I go on, let me first advise potential buyers of the risk associated with SIOR:

1. Recently, SIOR has not release a lot of Press Releases.
2. They are not fully reporting.
3. SIOR has the available shares to dilute.

In Defience of these shortcomings:

1. It is wise to remain silent while building a land position in any competitive play… You will notice that Sandridge first leased then announced the play, they didn’t announce then lease… Right now SIOR is securing 50,000 acres in Kansas & they are still quiet.
2. After the market crash of 2008, the death of SIOR CEO & most active board member, and legal battles with their largest shareholder, SIOR released a PR that quite simply advised shareholders of their inability to pay to have their financials audited.
3. Our CEO has indicated that other means of financing drilling capital have presented themselves & dilution is planned at this time or in the future… Besides, it is now too late to raise drilling capital through dilution, not to mention that full dilution would not fund a single Mississippi Lime Well…

In October of 2011, Sandridge & Chesapeake both announced that they had accumulated large positions in a new play they called the 'Mississippian Lime'. They claimed that due to the play's shallow depths, low drilling cost & high production rates that the Mississippian Lime is more economic than any other play in North America. Following these announcements, lease rates have soared & suddenly, SIOR had value again…

Today, SIOR has 23320 known acres within the play & currently have a Full-time Landman working to accumulate a targeted 58230 acres of mineral leases (8230 already held in Oklahoma & 50,000 total acres are being sought in Kansas, where 15,000 are already held). SIOR has reason to believe higher flow rates can be achieved in their area of interest in Kansas & wells adjacent to their leases have verified these beliefs.

SIOR has indicated that drilling will begin on their Cowley County Leases in mid 2012. SIOR's CEO is also the controlling interest owner of Cactus Drilling (the largest privately held drilling contractor in the US with 54 drilling rigs). Dan Lloyd Jr. (SIOR’s CEO is very wealthy & has no incentive for operating a penny scam. To the contrary, he has everything to loose if operating a scam. Because of Mr. Lloyd’s reputation, I feel safe & confident investing my money with SIOR.

In the past, Mr. Lloyd has suggested to shareholders that SIOR will get current with the SEC at a time that offers the most benefit to SIOR’s stock price. Hopefully these filings will coincide with drilling news.

SIOR is a low-float company with only about 30,000 shares available for the public. Shareholders here have the majority of thses shares locked away, so SIOR should move on even slight drilling pressure.

SIOR is Management is very Quiet, but we did get a tweet on the 15th of May that said SIOR is experiencing "the quiet before the storm" & went on to suggest just how undervalued SIOR is...

Communications from the company are probably not to the level that most investors would like, but right now SIOR is focused on closing out a few more leases & do not want to alert competition as to their movements... They are putting together 50000 acres (23000 are verifiable at this time)

On the 23rd of February, SIOR changed their Website from "Poised to drill in 2012" to "Will drill in early to mid 2012". Well, today marks mid 2012, for what that is worth... We have seen no official communications in 2012...

I have confidence that our CEO has the knowhow & connections to get this done. I also believe, but cannot verify that drilling must start by mid October 2012 or else SIOR will loose 15000 acres of prime leases; however, I believe that drilling is more likely weeks away, rather than months - otherwise the tweet doesn't fit...

OEDV took a 12,000 acre position in this play & turned it into a a company worth $100 million – share prices going from $0.02 to $2.00. I believe that SIOR Management has the ability to do the same, & it is about to begin…

http://stockcharts.com/c-sc/sc?s=SIOR&p=D&yr=0&mn=9&dy=0&i=p38224231668&r=1338596821365