Ann: December 2018 Quarterly Report and Appendix 5B, page-3

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cmonaussie

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01/02/19

14:26

Post #: 37300566
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Originally posted by alacrity: ↑

There’s signs of life ?

Average net production for the quarter ended 31 December 2018 was 726 barrels of oil equivalent per day, up 15% from the quarter ended 30 September 2018 of 631 barrels of oil equivalent per day (production numbers are based on barrels sold and doesn’t include movements in oil tank inventory).

Samson has three initiatives in place and is pursuing:

1)A refinance of the existing debt facility, this process is close to finalization with the necessary due diligence being undertaken

2)A farmout of the considerable upside in the Home Run Field. This field the largest in the portfolio and has a modest PDP reserve and therefore not effected as much by the recent downturn in oil prices The field however has large PUD reserve which is not valued in the trade sale market and is accordingly not subject to the value gap which has developed because of that price deterioration.

3)An asset sale to the previously engaged buyer or another buyer, this is proving to be difficult because of the lower oil price situation

Mutual of Omaha Credit Facility
Following the lapsing of the purchase and sale agreement, Mutual of Omaha have the right to seek alternative actions for repayment but have not done so at the date of this report.

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Perhaps the BoD could put in place one initiative - replace the mgmt, 'cos this mgmt has failed at creating shareholder value. TB had his multiple chances. The Foreman Butte was his chance at redemption. Failed (again).

Still $1M+ a Qtr for staff & admin costs for 631 boepd. Look at the Qtrly - signs of life?
Cash flow from operations = minus, i.e. negative, $720K

Costs more to operate the company than the revenue those operations bring in. Same story just about every Qtr.

Yep, crankypants on today

SSN Price at posting: 1.5¢ Sentiment: None Disclosure: Held
13 Upvote

0 Great analysis

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