If oil falls below the cap price they make less profit.

However, remember, as the amount of oil Americas pumps per day increases then the higher the revenue for Sage. Americas has started at 700 barrels per day and they hope to get it to 2000 by year end. So the revenue for Sage should shoot up very quickly regarless of the price of oil.

Also remember that Americas have a massive land holding in Argentina and the potential is huge. This bodes very well for Sage.

It will also be very interesting when Sage report their next couple of quatres. How much actual revenue has the partnership with Americas produced and what do they intend to do with the profits?

If we have nearly hit the market bottom and the price of oil has nearly bottomed, then the future for Sage should be very interesting indeed.