According to Dec 14, 2007 SGX NR: "we are most fortunate to have obtained a drill for our exclusive use for all of 2008 and we hope to add another rig during the year." As we all know, other than Onaman drilling that concluded in July and some Jacobus Ni-Cu drilling early in the year, SGX has not had the need for a drill for most of 2008 (damn bridge! LOL). I have asked SGX about the "drill for our exclusive use for all of 2008" in the past and their response was that nothing had changed in terms of this agreement. Therefore, I do not anticipate they will have any problem obtaining at least 1 drill for East Jacobus drilling.

Heck for all we know drilling may have already started as I don't think they are obligated to announce drilling if they so desire and that would be fine by me in this environment. The only thing I wonder about is how fast will SGX want to drill East Jacobus? Obviously there is some desire to conserve cash given market conditions but SGX would also have the competing desire to prove to the market (and warrant holders more importantly, $$) that they have part of they same Hercules system on their property. The former desire can only be attained by not drilling alot but the latter desire can only be attained by drilling alot. Although at the same time SGX did not seem to have a problem rainsing funds even in this environment... makes me lean more toward drilling faster (i.e. 2-3 rigs) than slower (i.e. 1 rig). Not sure what the plan of attack will be. We do know KXL has already stated their program will wrap up by mid-December. Lots of drills available then. Maybe SGX already has them booked?

IMO the main thing to remember is that all of these questions are purely logistical. One thing is for certain, SGX will drill East Jacobus and that will be in the very near future. They now have the money to do so.

red911