SSN decision to have a CR has taken the SP from low 3 cents in March to low 2 cents per share and if successful would have diluted shares significantly for shareholders. In my view SSN should have sold Roosevelt prior to undertake any CR, use the available cash for their current drilling to increase the share price then going to investors with a higher SP for less dilution.
Instead the SP has dropped over 30% because the company thought the dilution was the best way going forward. TB would have known cash was going to be a problem well before drilling started in the Stockyards and put Roosevelt up for sale earlier to give them a better chance at the right price. $13M IMO is well short of expectations considering they have invested a lot of research and cash already into the project.
The question going forward is how much of the infill drilling in the Stockyards is factored into the current SP considering the Bakken wells are proven. And what increases would you expect on a successful completion.
Cheers Matsim
SSN Price at posting:
2.2¢ Sentiment: None Disclosure: Not Held
