How can they survive without a capital raising? The $US19m debt is the borrowing limit based on Ryder Scott's proved reserve value. Maybe can issue junk bonds but borrowing limit has been reached.
From the ASX quarterly the cash balance at 31Mar was $US2.6m plus hedge book sale proceeds of $US1.5m gives cash of $US4.1m. The estimated cash outflows for the Jun qtr is $US3.7m. Capital raising has to happen soon. If not then voluntary administration.
There is a positive operating cash margin per barrel but it's the high development costs and low Bakken oil price which causes SSN to keep burning cash.
SSN Price at posting:
0.8¢ Sentiment: Sell Disclosure: Not Held
