I am always keenly interested in your views and I come out of my self imposed exile from the SSN forum as I would like you thoughts on the company's current aggressive development phase and its capital needs going forward.
The quarterly confirms the company is making an operational profit due to increased BOPD. However the capital expenses are high and is the reason the company did the capital raising. This pattern may continue until they have enough wells to fund both development and operations.
Junior may be accurate in so far as the company needs to significantly increase (maybe x4) its producing wells if it is to continue developing new wells at this pace without more capital raisings. Coupled with the fact that the price of each capital raising is getting lower it becomes extremely hard for investors to buy SSN stock during this phase. Yes there are other variables such as farm in arrangements but the trajectory towards 'critical mass' is what investors want to better understand.
SSN Price at posting:
1.7¢ Sentiment: None Disclosure: Held
