10-Q Filing Status - Late Filing

I quote from EDGAR

"Samson Oil & Gas Limited (the “Company”) is unable to file its Quarterly Report on Form 10-Q for the period ended December 31, 2015 (the “Form 10-Q”) by the prescribed due date as a result of unexpected delays in the completion of its financial statements and related portions of its Form 10-Q due to the continued evaluation of the Company’s oil and gas reserves in light of depressed commodity prices and current market conditions. In addition, management has been expending considerable time and effort on seeking to obtain financing for the acquisition of certain non-bakken interests, as announced in a Form 8-K filed on January 7, 2016."

I view this as quite negative .... mostly because it isn't as if oil and gas reserves have only just suddenly become "depressed" (no that's what O&G shareholders are).

To be clear, the SEC PV10 pricing deck has been known since Jan 1 (actually since Dec 2nd 2015). That is no reason for delay and I'm not aware of other companies having this issue. Bad mgmt (and I'm not being harsh).

We know the issue is the acquisition. We know that financing it the problem. Now taking this filing into account with yesterdays acquisition update the scenarios might be:

1. MOB finances the lot & Credit Facility completely renegotiated. What has taken extra time is convincing MOB that the PDNP (or a large % thereof)  should be considered. The current credit facility makes note that the "Recognized Value" of the mortgaged properties must be at least 80% .... so just drawing a bit of long bow a simplistic view is 80% x $22M = $17.6M so in theory the acquisition is "covered"

2. However, some (small) development capital is required to move PDNP to PDP. How much will MOB allow for PDNP. Say 60% and call it $6.5M

3. IMO, SSN has a deficiency with its present $19M BB. (if they have a deficiency notice from MOB I would have thought that material and notify listing exchanges). I don't believe current properties have the needed $24M of value based on writedowns I've seen so far.

4. Like it or not the "continued evaluations" might also be a very large impairment (large enough to put SSN in a technically insolvent position where Assets are less than Liabilities) and SSN faces a liquidity event.

5. MOB might be forcing SSN (because they they want to take on sole lender risk) to take some junior secured debt via a convertible note perhaps.

6. SSN hedging is terrible (always said that) and with this acquisition they will need a lot more and this isn't exactly the time to lock them in.

Gotten a little trickier IMO.

GFTA