Current asset value of 8.7c representing 40% gain but Niobara has significantly higher upside.
Six month target of 14c
Current low price a result of the 1.2c capital raising dilution and profit taking.
Highlights: - Cashed up in the middle of Niobrara Shale - Recently sold part of Goshen for $74M, retained 15k acres - Value underpinned by reserves and moderate production from NS - Samson retained acreage around a strong resistivity anomaly - 3D survey commenced, looking to increase acerage - Transformational deal with Chesapeake - market to fully value deal - Early Niobrara results of 1,000 boe/d similar to Eagle Ford 12 months ago - North Stockyard underpins current EV - Additional Bakken upside from downspacing for additional 4 wells
Not sure for O&G plays but Hartley's have SSN with a 2012e EBIT of $77.6M and 2013e of $195M. So work out the share price from those - I'd say pretty close to Terry's valuations of 96c per share.
Quote - "If Samson can get the first two wells producing then the upside valuation is 35cps" - this is the bit I like.
Always DYOR.
SSN Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held