If Samson's going down, it's going down swinging...

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30/06/16

11:31

Post #: 18159117
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Originally posted by cmonaussie ↑

Be 20% here if it jumps to 0.6c today.

So what happens tomorrow?

1. TB announces a $10B 3rd lien note has been secured (behind the $20.5M for MOB and $4M for OAS) and uses that money to make good on the $10M BB deficiency - Probability??

2. Nothing happens. SSN materially breaches Credit Facility terms and an "event of default" will occur within three (3) days after date due - presumably that is the 6th July accounting for weekend and 4th July holiday. Likely this would also cross default the OAS Note?

IF that happens, my reading of SSN-MOB Credit Facility would indicate that MOB has the right to declare all amounts (principle, interest, etc) immediately due and payable. Will they do that?

There is a sideline here in that would this be considered a BB reduction and so SSN has 30 days to cure the deficiency or would it be considered a payment due on June 30th and not making that payment is considered an event of default.

Will SSN go into Trading Halt/Suspension on ASX? Don't know there but it certainly will still be trading on NYSE event of default or not.

3. Does a potential for a JV/Farmout exist? This gets complicated due to the liens on the properties as in if SSN farms down its working interest that ought to correspondingly reduce the BB as SSN no longer has 100%. Also any farmout needs a big cash commitment up front (at least $10M to keep MOB happy). Can't see how the Paradox Basin project goes ahead with such capital constraints about.

Answers forthcoming over next 45 days.

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If Samson's going down, it's going down swinging...

SSN Price at posting: 0.5¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

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