The bru haha over sound oil continues the blog has been swamped with comments and emails asking for an opinion of the company.
Having taken a long hard look at the company I’m afraid to say that as an investment they just do not cut it for me. They have major hurdles to overcome, COS, shares in issue, and a funding problem that will have to be resolved via further placings and a capital reorganisation. The difficulty they have at the moment is lack of Broker interest EMV doesn’t cut it hence the coverage on them is sparse a sure pointer that there are just too many issues to be resolved. I wasn’t too taken aback by the CPR re’ Indonesia. It’s full of gems like the one below:
“The Bankanai PSC holds potential for future gas and possibly oil discoveries but currently the work to define the opportunities is immature. The West Kerendan prospect up-dip of Kerendan-2 is considered to be the most mature opportunity but carries a major risk on reservoir quality.”
There are also delays at Citarum re’ the drills.
I also noted that Synergy never actually visited the sites and relied upon information widely available to most investors?
Italy looks to be their best bet but again the costs of the campaign will have to be met via further placings. They have approximately $16/17 million dollars on account. They have 17 licences all at various stages most at permit or assigned permit status a long way from where they need to be. The company in all truth seems to be chomping at the bit and eager to progress the assets as quickly and efficiently as is possible. Italy is the key getting the assets on production will bring revenue. There is potential but again it’s some way off. A punt.