"The only risk to shareholders are Management's forward expansionary plans"
But they must expand and they have said they will expand as the base will decline. You got
a. Remaining NS infill wells
b. Rainbow project
c. Hawk Springs
d. Unnamed new project
That's a lot of forward expansionary plans ... and unfunded ... and we all should know by now that $6M in liquidity is nowhere near enough. Of course not all the capital spend for those projects occurs at once and SSN is looking far healthier at present (with is waist tightened by much reduced LOE and G&A) for Cash Margin - at least they are making cash money on each BOE out of the ground now. However without rising production those LOE & G&A expenses go up automatically with lower production (the decline curve as shown by SSN on its presentation).
SSN Price at posting:
0.9¢ Sentiment: None Disclosure: Not Held
