5 Comments

Good deal all around, both the dividend / ROC return from Spartan and the Logan shares and warrants. Even though your analysis is

a speculative projection Michael which I hope turns out to be true. Both Spartan and Logan have very good management which is focused on shareholder returns which is number 1 in my books.

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Not related, but lots of share buybacks for TCW(TRICAN), good prospects, opened a new position on them...

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Good call, frankly I think I had it reversed, LGN is quality and SDE is the left overs. I exercised my options yday so still have a position... Follow the money seems reasonable here too, the insiders have the 5 year warrants at $0.35, and someone looking to retire in 1-5 years is working their rear off to make LGN successful, of course a nice car or a beach property is nice to have even if you arent retired :)

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Michael, I cant get into the details as you do, what I can do is get a back of envelope and I come up with $25K a flowing barrel which doesnt count Tax pools, facilities, hedges and proven management.

When I see Logan trade today valuing the Stock at $0.90 and the warrants at (90-35=55) I wish I had bought more:)

SDE old 2023-06-20 $14.98

Logan $0.90

Logan Warrant $0.55 “$0.90-$0.35”

Distribution $9.50

Sub total $10.95

SDE (NEW) $4.03

Price 07/18 $4.60

Share 173,200,000

Mkt cap $796,720,000

Debt $139,000,000

Enterprise Value $935,720,000

Production 37000

Per Barrel $25,290 Per flowing Barrel

Plus Plus

Tax Pool $275,000,000

Hedges H2 73% of gross sales gas production hedged in H2 2023 at $4.45/GJ p

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My thoughts, new presentations out on SDE and Logan..

Insider warrants have a 5 year timeframe relative to shareholders July 31,2023. I was able to sell all my shares at the open for $1.00, I thought it would open around 35 cents, ill exercise the warrants as they are not trading right now.

I took a look at SDE over the weekend, much cleaner with the sale to CPG and spinning off Logan. Its very very cheap imo, low debt, good hedges through YE2023, some tax losses they can use, and its not managements first rodeo. I added to SDE YDay.

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