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[cheekymonkey]

Tips or rises?

[TreeShaker]

Re: SRO (AIM LIsted) - Spitfire Oil

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Well, not the greatest of news from Spitfire but its not all doom and gloom. Relax. The L2V process was Spitfire's own but there are others that can be used for a fee. Its not like they have issued a JORC report saying there is no lignite!!! It just means that they will unlikely be using their own novell process and this RNS is a precursor to softening the blow of the next one which probably will say that they are using another process.

I have no intention of selling any of mine and bending over to take one off the MMs tomorrow at some stupid price. I am happy to sit on mine for the long term.

Just look at the fundamentals here - 420M Barrels of oil minimum and other by products from existing lignite. Plus the option to further extend the resource for more oil and mine upto 1000M tonnes lignite - circa 800M barrels. At a time when the big oil companies are concerned about not enough investment in securing oil production in the future.

Also, there is every chance that Spitfire will get bought out in the next year or two along with Griffin Mining who own 40%. Did we see Griffin offloading prior to the RNS? No chance. They knew what was coming and they are not in the slightest concerned.

In addition we then have the possibility of a gold play in future.

The mention of the gold and the timing of the RNS was meant to soften the impact of the information. But its not all doom and gloom. The MMs will prey on the weak holders here for the rest of the week I can tell you.

I am pleased that they are using their asset wisely and looking for gold. There is a significant amount of gold in the area by the looks of it. See the following gold play out there;

Triton Gold;

http://www.tritongold.com.au/projects_salmon_gums.htm

In regards the L2V process, the company has said;

"Ongoing testwork and investigations, have highlighted the expanding complexity and growth in the scope of research required in refining and finalising the Company’s proprietary L2VTM lignite to oils process to extract distillate from the Salmon Gums lignite. The directors have consequently ordered a complete financial and technical reappraisal of the project, including an analysis of other competing coal-to-liquids technologies, the result of which will be communicated as soon as it is available."

It is dissapointing that the cost and process technicality at a commercial level has not been finalaised yet. However, it is good that they have been sensible in taking this step now. Better now than in 2 years time having emptied the bank account with nothing more to show.

There are umpteen numbers of pyrolysis processes out there that can be used to extract the liquids from the lignite. Spitfire will be bound to pay a royalty on any patented process they use of course. All this means is that Spitfire will not be as huge in future although with the size of the asset it has, in a few years time when in production, the current SP will seem like pittance.

Spitfire always has been and always will be a long term hold for me. For the next few days this will be a bumpy ride but the smart investors who can see the value in the company long term, are the ones who hold or top up at the bottom.

MMs won't be buying these this morning I can tell you. If you are scared and want to sell up then be prepared to give them away cheap. I am in for the long haul here as I still believe that the fundamentals in regard the deposit are sound. Also, if another pyrolysis process is adopted to replace L2V, then I am sure Spitfire would be in full production sooner.

For me this is a definite hold as long term I still believe Spitfire will be a winner. The fact that Griffin still own 40% and have not been offloading is a very good long term sign.

These are just my views. Its your money folks so make up your own minds but whatever you choose to do, don't let the MM games influence you. You either believe in Spitfire long term or you don't. I for one, do.

Good luck all. Should be a bumpy few days here anyway as the MMs prey on the weak and look to line their pockets.

[CapitalGains]

Yeah, that's right.. Its definitely a buy.. Its been on my watchlist for quite sometime and I think it would be a good investment getting shares on its stocks.

~Stephen

[dxrules44]

my stop loss got triggered at 13p, !! im prbly not going to invest for a while now!, im gona be strapped on cash over the nxt year, hopefuly my portfolio will do well though!

[Ron]

Hey CaptainGains, Are you are trying to be sarcastic? I hope not!!! Sarcasm is the lowest form of wit because it requires very little brain power to be sarcastic? puns or other 'true' jokes for example, actually need some sort of a sense of humour, intelligence and/or wit.

TreeShaker is one of the most respected posters on here and other web forums like iii investor etc. His posts are very informative. I and many others appreciate the time he takes to share his thoughts with us. I have actually made good money with many of the stocks he has "brought to my attention". What you buy or don't buy is up to you and don’t be cheeky when it doesn't go exactly as predicted.

To be honest the dip is probably an excellent opportunity to jump onboard SRO, maybe I wouldn't be aware of this stock if TreeShaker hadn’t brought it up in the first place?

No one has a crystal ball, I only have hairy ones


Ronnie