Today Saffron Energy (LON: SRON) finally announced what was already basically known by those who follow and read www.guerillainvesting.co.uk That is that Bezzecca gas production has now come on stream at 30,000-40,000 scm per day. This when added to 10,000scm currently being produced from their Silaro field gives them production of 40,000-50,000 scm per day. Financially this is over three hundred thousand euros per month. Circa £250,000 per month times this by twelve and we get £3,000,000 per annum in revenue. That is a phenomenal success story in the world of micro-cap oil and gas.
The SP has spluttered on very good news! When in actual fact it should be heading towards 10/11p etc. One of the quirks of the AIM is that impending good news is usually forward sold into by the brokers and the ‘canny’ high net worth’s. You can see it in the late trades that were being announced over the last two weeks. Profit taking. Every one is entitled to take it. So when you’re looking at Saffron or any other Company remember think ahead and don’t be discouraged by a rise that spluttered on good news. There’s always a reason for it. Normal service will be resumed once the SP settles down.
Sources here are indicating that gas production from Bezzecca could easily surpass 50,000 scm per day as the Company work out their best flow rates over the coming weeks. Again any increase in production will significantly add to their revenue. These are a bargain at todays SP. I did hear that their CEO (Masterman) was in the UK and will be having a tete a tete with investors this week. A question I would ask if I was their would be this; “Bearing in mind what was being discussed on the recent site visit, will the 100,000scm per day be reached this year?”
Great little producer this. Could be 12p-15p by the end of this year….