SSN 0.00% 1.5¢ samson oil & gas limited

TOTB, I think if you left off the 50,000 acres part then your...

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    TOTB,

    I think if you left off the 50,000 acres part then your comment is quite correct. The asset acquired (FB) is better than the asset disposed (NS). IMO it really has very little to do with acreage and production. It is as I made a note of right when the acquisition was first announced - I think I even called it a genius move - the reason why this works for SSN is because of capital efficiency and no other reason, OAS sunk the money into FB and SSN gets the part of the value of that capital for "free". They paid for the Reserves (and at a good price) but the big win is by investing incremental capital they get more BOEs for lesser capital than by drilling new wells. That's the magic in the PDNP portion that TB found.

    Now the future ... that's different altogether. Once they get to PUD and having to put up all the capital the "free" ride is over.

    So yeah agreed with your original comment. It is good for SSN to have sold NS but it was also necessary to keep the Reaper at bay. Shareholders still face a dilutive equity raising as the(required by MOB) full $5M equity has not been raised.
 
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