The article isn't bad for SSN as it is not saying over valued which on production results would have been the case if done in the March qtr. The $100/bbl is not unreasonable in the current mkt but as mentioned imo is valuing the coy primarily as a producer and not looking at potential exploration and new wells. Looking at the operations report May production was around 582 boed and a rough calc for June qtr figure should be around 813 boed. Last weeks report average prodn was about 573 boed so new wells (underway) are needed to come on line to compensate for the prodn decline of past wells with time and also build production.
FWIW the analysis is a view at a point in time and likely gives an insight into how market is looking at the different stocks, it isn't predicting anything or saying they are bad but could explain current SP and also how that view may change as more results come to hand. A positive for SSN is that the fundamentals are starting to stack up which may indicate a base has formed to build on.
All above is just my opinion based on my understanding and research
Cheers
SSN Price at posting:
2.1¢ Sentiment: Hold Disclosure: Not Held
