Ann: December 2015 Quarterly Report and Appendix 5B, page-21

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12/02/16

17:57

Post #: 17008219
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Originally posted by cmonaussie ↑

Hi Mufc.

The 15th is the last date I've seen in SSN filing to SEC. That would be COB in the USA, so we'll see it on Tuesday morning. I don't believe their would be any need for a trading halt for the acquisition if funded by MOB.

The 15th is also the last day for filing their 10Q .... we'll see that on Tuesday also.

Also due for release is a Reserves Report ...which has been completed already (per loan agreement). This is an important document (IMO) as it will give the indication of BB (we wont know what price deck they used but at least it will reference SEC PV10 ... maybe also get a PV10 using forward strip).

Didn't post it but EIA just recently put out a report which suggested 2016 avg WTI at $38/Bbl (that was the price I have been using in my modelling). An observation would be why is SSN wasting time and money on Cane Creek/Paradox at this point in time?

Given the current issues/concerns with pricing, forward strip, supply pressure and demand growth contraction I would be surprised if MOB goes ahead and funds a BB of ~$39M (they have bank regulators to worry about). Maybe some variation of project funding with delayed principal payments (a bit like the model I put up) perhaps. Maybe a JV partner to provide lion's share of D&C capital with SSN earning their WI after JV has made their required IRR percentage on that capital?

It's going to be a big week coming up I think.

On the board composition ... no surprises there. We'll soon seen what their agenda is. Doubtful if Peter Hill will just be a rubber stamp.

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Can a sale of the Hawks Springs and Roosevelt projects be on the cards, to get the deal passed? Gotta be worth $5 million combined, imo.

SSN Price at posting: 0.4¢ Sentiment: Buy Disclosure: Held
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