ive made the point a few times ....and CmonOz has more than hinted at it ......
1. when you have PUD's .....you need capital to drill & complete ......
2. when you have debt ......int service costs come 1st (and in SSN's case - they are explicitly spelt out in terms of priority compared to GG&A) ....
3. close out of part of hedge book - looks like a classic ...we need to access some cash .....
however - none of that will "fix" the issue ......
so a forward plan for SSN ......
1. sell PUD's for 50c in the $ .......
2. sell some of the 3P (perhaps combined with above) ...
3. use funds to pay down debt asap .....
4. reduce GG&A to very low levels (hey - take a pay cut......or pay in shares )
in the present environment ....it is possible to buy "oil in the ground" for NIL (or very sloe to it) in the aussie oil market .............those that require funding ....will, imho ....find it difficult ...
investing is always abt risk versus reward .........so a potential 5 bagger (that requires the oil price to get back to 80+) that has the potential to go broke .............
i'm relatively risk averse .....
rgds
V_H
SSN Price at posting:
0.9¢ Sentiment: None Disclosure: Not Held
