After a meticulous analysis with maps, numbers and key ratios, the author notes:
"Samson Oil does not have any debt problems, but it has negative operating cash flow for several quarters now. This is a major disadvantage of course. Given that its production is coming from the Williston Basin, Samson has to deal with the harsh winters, while it is also exposed to volatility of differentials from WTI. Given also that Samson is not the operator of its acreage, it is fully valued at the current price of $0.44. "
The author is long Lonestar Resources (LNR).
The article is also posted at Yahoo Finance, at the headlines of ZaZa Energy (ZAZA), because ZaZa is another junior that drills at the Eagle Ford shale.
SSN Price at posting:
2.3¢ Sentiment: None Disclosure: Not Held
