Because I understand the potential of the leases & value of their reserves, I see SIOR as a very tangible investment. SIOR has nothing to announce until a well is spud on their leases. It is not SIOR's management's fault that some investors bought in during 1st quarter 2012 & have recently sold due to impatience - these impatient investors simply do not understand the nature of this industry.
SIOR could still develop oklahoma leases using revenues from future Kansas production. However, multistage frac-jobs are about as technical as the space-shuttle, & it could be challenging for a small company like SIOR to design a successful frac-job - but, I guess there are consultants for everything.
I think that SIOR planned to start developing leases Mid-2012. I don't think that they ever planned to be the Operator of these wells (though I though that might be a possibility at one time). I believe that we are still on track to see drilling soon.
I don't understand how increasing the PPS would offer SIOR more money to invest in research & product development? Perhaps a higher share-price / market-cap opens doors for financing or share dilution as a means of generating drilling capital. However, I would much rather see SIOR take a modest deal with a larger oil & gas company than see my shares diluted. Enough Dilution to drill/complete 1 Mississippi Lime Horizontal Well would cut my equity in the company in half. Enough dilution to drill 2 wells & my shares would only represent 1/4 of the equity they represent today.
I find the fact that SIOR in not a pump & dump company to be reassuring. I have seen zero dilution since I started buying shares last September. SIOR operates & pays employees/CEO with monies generated from oil & gas production sales, not from releasing exaggerated PR's so they can sell shares to investors.
For a $3MM company to be on the verge of a deal that will will deliver approximately $1 Billion in revenues over the next 20 years is Huge... I do not feel that SIOR Management gets enough credit for being an early mover in this play. They were leasing in Oklahoma When SD & CHK were establishing their initial position. THen SIOR was securing acreage in Kansas for pennies on the dollar while everyone else was paying $1000+ per acre in Oklahoma.
The creative Team at SIOR has vision. SIOR is on the verge of turning this vision into some serious capital, yet many shareholders are selling their position to myself & a few others who understand what is going on. It is kind of ironic if you think about it...
These shares that people are selling - they are not going to get back...
AI
