SHG sunshine gas limited

assessment, page-2

  1. 15,276 Posts.
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    What a disapointing day...another [email protected] disapointing announcement!

    Why do they keep doing this?

    It has been like this for months...they are forever preparing the market for immenent "results", but constantly disapoint by releasing "nothing" announcements!

    Since February the company has been stating both privately & publicly that; "Overston will be flow tested within weeks"...what a joke...and now we have to wait another 2 or 3 weeks!

    Geeeeeez!

    ---

    OK...now that I have that out of my system...what happened today?

    I sold some of my SHG's, but bought some more SHGO's.

    Couldn't help myself...lol

    Some big buyers stood up to the 33c plate, only problem was that I was in such a foul mood regarding the announcement, that I took advantage and tossed a couple of balls at them! They took the first hit pretty well and to my surprise, quickly stepped up again for another go...however after my second hit, they seemed to have second thoughts!

    That'll teach them!

    Actually it was a good test...and the fact that some larger buyers are taking advantage of these "nothing" announcements to accumulate, is actually a fairly bullish sign for the long term!

    For the short term however, or at least until the next announcement, I suspect we might see a little weakness...that's why I was happy to reduce my holdings!

    I intend to buy them back a little cheaper, but if the price manges to hold, I will still be happy to get them back a few points higher if I have to.

    So what did todays announcements mean?

    I think the most important part was the spudding of "tardrum 2" as of this morning...it will take about 11 days to drill and some good news should help the price along. In the meantime, we await the results of the Tardrum 1 workover and of course the results from Overston...so lots of news to come!

    Strangely, in today's Overston report, they only discussed the "communication" problems with the "Tinowan" sandstones and made no mention of "Showgrounds" which is supposed to be the bigger of the pay zones...something smells a little fishy to me!

    Just a guess, but I reckon the "showgrounds" sandstones might have been relatively unaffected by the "mud" and are already providing "commercial" flows, but Samson wouldn't want to release this until they get all the data, including the "Tinowan A & B" flows...so of course, we will have to wait!

    I will be watching for the lightest sign of strong buying from now till then!

    Cheers!
 
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