just ....should be PV10 - 34m for PDP / PDNP of 1.6mmboe ..... @ nymex ...already stated by SSN .....(this would have incld all wells drilled pre xmas ......)
what it does mean is:
1. where is SSN going to get the cash to fund future development drilling ....
2. without hedging - what happens to c/flow .....and will this cover EBITDAX debt covenents ...
3. what sort of decline rates from exsisting assets ....and how long before prod falls off cliff ......
4. will banks "reduce" % of debt against PDP assets ......and will then "force" future hedging (bleedingly obvious) ..... (already some eveidence of this occurring in the industry......)
5. SSN now becomes "extremely" leveraged (both ways) to any OP move ......
just became much much higher risks imho ....
rgds
V_H
SSN Price at posting:
0.9¢ Sentiment: None Disclosure: Not Held
