Quiet in here - everyone holding their breath?
OAS filed their Mar 10Q. Salient points as it relates to SSN
"Net assets held for sale represent the assets that were expected to be sold, net of liabilities, which were expected to be assumed by the purchaser. As of March 31, 2016 and December 31, 2015, certain legacy wells that have been producing from conventional reservoirs such as the Madison, Red River and other formations in the Williston Basin other than the Bakken or Three Forks formations were held for sale. These assets primarily consist of oil and gas properties in the Company’s exploration and production segment and include certain other property and equipment in the Company’s midstream segment. For the three months ended March 31, 2016 and the year ended December 31, 2015, the Company recorded losses of $3.6 million and $9.4 million, respectively, which were included in impairment on the Company’s Condensed Consolidated Statement of Operations, to adjust the carrying value of these assets to their estimated fair value, determined based on the expected sales price, less costs to sell. The Company sold these assets on April 1, 2016 (see Note 17 – Subsequent Events). The following table presents balance sheet data related to the assets held for sale:"
The table doesn't cut and paste in a readable fashion so the highlight is
Total Assets = $25,845,000
Total Liabilities = $10,155,000 (this is all Asset Retirement Obligation now assumed by SSN & which will show in their BS).
Net Assets = $15,690,000
Notes:
17. Subsequent Events
The Company has evaluated the period after the balance sheet date, noting no subsequent events or transactions that required recognition or disclosure in the financial statements, other than as noted below.
Divestiture. On April 1, 2016, the Company completed the sale of certain legacy wells that have been producing from conventional reservoirs and other formations in the Williston Basin other than the Bakken or Three Forks formations for cash proceeds of approximately $12.2 million, which includes, and is subject to further, customary post close adjustments, and a $4.0 million 10% secured promissory note due within one year.
Thus US$16.2M is the net amount at settlement
" In the first quarter of 2016, as WTI continued to fall, our price differentials increased as a percentage of WTI, but remained less than $5.00 per barrel discount to WTI, at an average of $4.85 per barrel of oil. Our market optionality on the crude oil gathering systems allows us to shift volumes between pipeline and rail markets in order to optimize price realizations."
So expect at least a $5/Bbl differential for SSN.
OAS noted LOE of $6.78/BOE + Mktg/Transport of $1.87/BOE ... so $8.65/BOE
I was hoping that perhaps OAS would note the decrease in production related to the Foreman Butte divestiture but no such luck.
Last filing date would be Mon in USA so we should have SSN 10Q within the week.
