Sacgasco poised to pounce in the Australian energy sector.

Summary

In the 'Market Open Direct' webinar, Stuart Walters hosts Kane Marshall, Managing Director of Sasco Limited (ASX: SGC), to discuss the company's recent operations and future outlook. Marshall highlights the company's shift in focus from international assets to domestic opportunities, particularly in natural gas, amid the energy crisis in Australia. He also addresses the company's rebranding to reflect its commitment to oil and gas, contrarian to the prevailing decarbonization trend. The discussion includes potential investments in larger-scale projects and the strategic advantages of the current geopolitical and energy market conditions.

Takeaways

• 📈 Sasco Limited is focusing on diversifying and broadening its portfolio, with a shift towards more domestic upstream opportunities, particularly in natural gas.
• 🌏 The company has almost completed its need investment and is now looking to rationalize its portfolio, moving away from positions in the Philippines and potentially North America.
• 🛑 There is an ongoing issue with non-payments from Blue Sky Resources after Sasco's exit from the Philippines, which the company is working to resolve.
• 🔍 Sasco is currently reviewing several projects, mainly in Western Australia, with a focus on low-entry point acquisitions that have significant upside potential.
• 🏭 The energy market in Western Australia is strained with high gas prices and a lack of new supply, presenting an opportunity for junior companies to explore deeper gas potential.
• 📉 Gas prices in California are currently weak, which is a factor in Sasco's strategic planning as they have significant operations in the energy-hungry state.
• 🌱 Sasco's management believes that oil and gas companies are part of the solution to a cleaner economy, not the enemy, and that their products are essential for the materials needed in electric vehicles and decarbonizing economies.
• 🛑 The company is considering a name change back to 'Australian Oil Company' to better reflect its focus and be more recognizable in the market.
• 💡 There is a supply issue with reliable, low-emission electricity in Australia that the government has yet to adequately address, which Sasco sees as a significant opportunity.
• 💼 Sasco is looking for larger opportunities that have been overlooked by bigger companies due to regulatory issues and a shift in focus abroad, such as in PNG and Alaska.
• 📊 The equity markets are currently strong and favorable for energy investments, and Sasco aims to capitalize on this by raising capital and securing new projects within the next six months.

Q & A

What is the main focus of the Market Open Direct webinar series?

The Market Open Direct webinar series is focused on providing a platform for companies to tell their story, explain why it's compelling, and present why it's an opportunity for investment.

Who is the host of the webinar and who is the guest speaker in the provided transcript?

The host of the webinar is Stuart Walters, and the guest speaker is Kane Marshall, the managing director of Sasco Limited.

What has Sasco Limited been focusing on in the last six months according to Kane Marshall?

In the last six months, Sasco Limited has been focusing on the completion of an investment need, divesting their position in the Philippines, and looking at opportunities to broaden and diversify their positions in North America with a more domestic focus on natural gas.

What is the current situation with Sasco Limited's investment in the Philippines?

Sasco Limited has decided to divest their position in the Philippines, as they believe it is not an area they need to be in over the next six months.

What is the energy situation in California according to the discussion?

California is described as an energy-hungry state with currently weak gas prices, and structurally different markets compared to Australia.

What opportunities is Sasco Limited looking at in Australia?

Sasco Limited is looking at opportunities related to the energy crisis on the east coast of Australia and the deficiency in gas supply in Western Australia, with a focus on natural gas and potentially oil as well.

Why is Sasco Limited considering a name change back to its founding name?

The board of Sasco Limited is considering a name change back to its founding name, 'Australian Oil Company Limited,' as it believes the name reflects their focus on oil and gas and is a strong brand that aligns with their business direction.

What is Kane Marshall's view on the role of oil companies in the energy transition and decarbonization?

Kane Marshall believes that oil companies are part of the solution rather than the enemy in the energy transition and decarbonization. He emphasizes the importance of fossil fuels in creating materials for a cleaner economy and suggests that the focus should be on embracing oil and gas companies as part of the solution.

What kind of opportunities is Sasco Limited looking to target in the Australian Capital markets?

Sasco Limited is looking to target opportunities that involve exploring for gas in deeper basins, focusing on bigger opportunities that have been overlooked by larger companies, and considering oil, gas, and potentially subsalt helium plays.

What is the current situation regarding non-payments from Blue Sky Resources after Sasco Limited's exit from the Philippines?

Sasco Limited experienced nonpayment from Blue Sky Resources for the second transaction related to their exit from the Philippines. They are working to resolve the issue and are looking at ways to extricate themselves from Canada while keeping the company recapitalized.

What are Sasco Limited's plans for their North American leases?

Sasco Limited is looking to rationalize their North American leases, considering Red Earth as potentially non-core and exploring bolt-on opportunities and expansions into more domestic opportunities, particularly focusing on areas with bigger upsides that can excite the market.

What specific projects is Sasco Limited currently reviewing or in discussions about?

Sasco Limited is reviewing about three or four projects, mostly in Western Australia, with a focus on low entry point acquisitions that they can develop with their expertise and potentially promote out with like-minded juniors.

What is Kane Marshall's view on the current equity markets and energy markets, and how does he suggest Sasco Limited strategically take advantage of geopolitical issues?

Kane Marshall views the equity markets as currently being in a 'risk-on' mode, with energy being a great space to invest in due to ongoing geopolitical tensions and the importance of energy security. He suggests that Sasco Limited should focus on getting properly capitalized and having the right projects in place to take advantage of the current market conditions.

What does Kane Marshall see as the most significant upside for investors looking at Sasco Limited?

The most significant upside, according to Kane Marshall, is the potential for substantial growth, as the company is currently capped at a low market cap and is looking to capitalize on new projects. He believes that with the right moves, the stock could easily see an increase to a higher range, offering significant upside for investors.