Dear Alphastox Subscribers,
I wanted to turn your attention and shed some light on Saturn Oil and Gas (TSXV:SOIL). Saturn Oil & Gas is a public energy company focused on the acquisition and development of undervalued, low risk assets. Saturn is driven to build a strong portfolio of cash flowing assets with strategic land positions. Their asset base is primarily based in the Viking formation in Saskatchewan. Saturn’s focus has been to acquire premium light oil assets with proven production in the Viking, which has proven to provide high netbacks with strong capital efficiencies.
Saturn is a story I’ve featured several times in the past. It’s been a rocky road for long-time shareholders but a successful one at that for anyone that stuck around. As you can see from anyone looking at the chart – Saturn is a turnaround story that has so far proven to be perfectly positioned to make a wildly successful run in 2019.
Led by industry veteran John Jeffrey, SOIL has repositioned itself to become a cash-flowing, energy player that takes advantage of proven undervalued assets. For anyone that doesn’t know John, please take a look at a great interview he did with SmallCap Power:
What’s their development plan?
Drilling has already started so I expect a lot more news and updates to come. According to the company’s last news release:
“The program comprised 10 extended-reach horizontal Viking wells spread over its Milton, Kerrobert and Prairiedale lands.
The company is currently drilling the fifth well in the program with the first four wells successfully drilled. Completion operations have commenced with the first two wells successfully completed and brought on-line. Drilling and completion operations are expected to run through to March, 2019, with the intended goal of having all 10 wells on-line and producing prior to Q2 2019.”
What do they hope to achieve over the coming 24 months?
Pretty astonishing numbers which should translate remarkably well in the market if the team is able to achieve these goals – so far, they’ve done exactly that.
What’s sets these guys apart from so many other Alberta-based companies is the fact that these guys have such deep roots and relationships with so many of the vendors and property owners which gives them an edge when trying to negotiate and acquire new assets.
I see SOIL stabilizing around the $0.17-$0.18/share range and moving higher on the next catalyst which I hope to see in the coming weeks. Stock hit as high as $0.30/share in the fall so I could definitely see it go back to those levels on the next big announcement. I know management is working hard to shock the market with another major transaction/acquisition so if they’re actually able to pull it off, I think that’ll be absolutely massive for the company and most importantly its shareholders.
Their last financing was done at $0.24/share so there’s still a 41% lift from current levels before those guys break even.
In any case, this is a young and hungry team that will stop at nothing to create value for their shareholders. John’s passion for his company is evident in every interview he does and I’m excited to be a part of the team.
I bought over 380,000 shares at $0.19 so I will be following the story very closely so make sure you stay tuned.
As always, if you have any questions, please don’t hesitate to get in touch with me anytime, I look forward to hearing from you.