SSN 0.00% 1.5¢ samson oil & gas limited

Hi Alacrity, Although there were no details given re the...

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    Hi Alacrity,

    Although there were no details given re the NYSE:MKT delisting, my guess is that would have revolved around two points
    1. The acquisition and rework of FB properties increases the PP&E on the balance sheet and therefor increases the shareholder equity on the balance sheet
    2. The equity raising thus far increases the shareholder equity on the balance sheet.
    Now both of those may have corrected the problem for NYSE. If not the demanded equity raising that remains for compliance with the credit facility certainly does. The most recent raising hopefully corrected the minimum liquidity demanded by MOB

    The increased cash flow hopefully fixes the EBITDAX covenant but I haven't reworked any models to confirm. Something to watch for in their Qtrly will be how much debt is being repaid each Qtrly (as 50% excess cash flow has to be repaid each month)

    Which raises the two remaining (but huge) concerns regarding how SSN plans to deal with the reduction in BB from $30.5M to $20.5M on June 30th. I've found nothing and the deadline is June 30th which is tomorrow in the US. Second concern is the equity transaction of $5M (prospectus to MOB by Aug 31 and aggregate net cash to be received by Sep 30).

    So the work program SSN is doing goes a long way to prettying up the company (for anyone who even thought SSN could continue without FB acquisition (i.e. repay MOB) just look at production from legacy asset) as a going concern but what price will the shares be at after recapitalization is complete (based on current capital structure)?

    As always, good fortune to all (GFTA).
 
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Currently unlisted public company.

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