OK now we've had the ASX Qtrly, which just as those before it,...

OK now we've had the ASX Qtrly, which just as those before it, makes no mention of EBITDAX or what the leverage ratios were for the Qtr. For that we wait on the 10Q for further info and which should be released within 2 weeks.

Mid Sep will see the AR released (and which historically includes as updated Reserves report as at June 30th). We should see both the SEC PV10 backward looking valuation as well as the NYMEX forward strip (since that should be more positive given it would remove the ugly Dec/Jan/Feb numbers). Also in that will be the asset impairments that are going to be recorded which (unfortunately) will have an impact on the balance sheet and shareholder equity. On the plus side of that will be the value being created in FB asset.

At the time of posting, I think SSN is still playing defense and here's why

The below comments are by a CFO, CFO from a recent Q2 earnings call. I think it sums up certain of SSN's problems. It is an audio transcript so there is a transcription error in meaning - I highlighted it.

(CFO)
"...we continue to have one distinct problem. Too much of our debt is under our reserve-based credit facility with our banks who re-determine the value of our reserves and our borrowing base every six months based on our own price tags. As commodity prices have declined, bank price taxes (sic tags) have been lowered, our borrowing base has been reduced and our liquidity has declined ... Although commodity pricing has improved since the spring redetermination, we cannot be certain that our bank group will increase their price tags to the same extent or at all. We believe that simply hoping for a better price environment or improved bank price tag is not an advisable strategy, and we are actively considering all of our options to resolve our bank debt problem"

"...asset sales they can certainly help but they have to be credit accretive. If our goal is to improve our situation in relation to our borrowing base, selling assets for $10 million when the borrowing base has an $8 million valuation on it, yeah it helps, but doesn't help a lot. So, there is a misconception sometimes, that all we have to do is go out and sell a couple of hundred million dollars’ worth of assets and we'll be fine. Well that's not actually not accurate because you have to take in consideration what value is on borrowing base at the time. So, even selling large assets doesn't necessarily improve borrowing base situation significantly..."

Saw that with SSN ... selling NS made no overall impact as BB reduces accordingly

(CFO)
"... looking at options to take back control out of the bank's hands. They basically control our destiny every six months with this redetermination and it's our goal to figure out how to take that control out of their hands and the only lawful way we can accomplish that is by paying down that facility in a meaningful manner and they would appear that will require us to find new sources of capital. So that is our principal goal at this point is to find sources of capital that will allow us to pay down the facility to a level where that cloud is no longer over our heads, and we begin to control our own destiny again at that point..."

Seeing that with SSN now. This is the equity raise that needs to occur just to satisfy the bank. However, long term is that going to be enough and does SSN need say a (PE maybe) drilling partner that can offer alternative capital to juice the FB development program and allow SSN to make meaningful repayments from excess cash flow (the 50% that MOB will take as per Credit facility).