Yep, all good and I am clearly positive for SSN's future. So they have committments for $55m leaving around $20m plus revenues through to end of 2011 (also, have they committed to retiring debt early?). We have aound $20m+ left.
The $74m is a company changer and may well shift the focus a little. The SSN of yesterday would be drilling with the extra money and looking for land, but they already have a lot of land to drill. So what are some possible options? I would love to be a fly on the wall in the US Office. IMHO they may well consider the following:
1. More land - yep, great. But they have a lot of holdings that require drilling (see point 3). 2. Acquire a small cap company - land, cashflow, proven reserves. Better. 3. Drilling Rigs - there is a ton of drilling going on in the US and drilling/fracc'ing dates continue to slip right for many companies. Could they consider purchasing their own rig and acting independently? Could they merge/acquire a drilling rig operator? Reduces the drilling risk for expiring exploration leases down the track.
Drilling will continue to heat up as the economy recovers. Plus, remember at the start of this year Obama went to China and a topic of dicussion was the improving US gas/oil reserves and potential for export.
I look forward to their plans for the future and ann's over the coming months.
SSN Price at posting:
7.3¢ Sentiment: LT Buy Disclosure: Held
