Well if Brent stays at $40/Bbl for next 5 years there's a whole...

Well if Brent stays at $40/Bbl for next 5 years there's a whole lot more to worry about than the oil industry.

SSN share price just seems so "disconnected" to fundamentals - even adjusted for the low price environment. If you take (most) emotion out do some figures they do show SSN as trading at a discount - but there is usually a reason for that.

Another useful multiple around EBITDAX (this is especially for you Rob) is simply the EV/EBITDAX or taken just in isolation and then apply a multiple that is occurring on asset deals now.

Translation: SSN has a TTM EBITDAX somewhere in the $5 - $7M range. I'll use $6M. O&G asset sales are occurring all the time and the multiple being payed is ranging around 5x to 10x (though that was in a higher oil price time). So lets use the low multiple of 5x. Even looking forward, and using strip pricing for 2016, $6M should be doable.

Implication is that $6M of EBITDAX is "worth" $30M cash now. (and with SSN producing 800 bopd now and depending on your viewpoint possibly only 600 bopd in 12mths thats between $37,500 - $50,000 per flowing barrel).

$30M valuation (so less $17M for net debt leaves $13M for MC or at least 50% upside for SP) for all of SSN implies ZERO for anything else (inclusive of Rainbow PUD). Average volume in US despite large rise in oil price - further disconnect.

No I haven't bought SSN and am now trying to talk the price up (that's for you know who).

Oil price action today (up) has been predicted as short covering (Bloomberg wrote a piece on the high short interest). Gist was take advantage of it, as refinery maintenance season is Sep/Oct and lots a "extra" Bbls will be produced and going into storage as the refinery demand is lower (gasoline prices go up).

GLTA