Ann: September 2015 Quarterly Report and Appendix 5B, page-4

SSN was cash flow positive in the September quarter and this included the exploration and development done. At current OP and hedging in place that is imo likely to continue with continued good management and hedging in place. Pretty easy to calculate if you want to check.

Cost to shareholders has been $47.441 million USD which is the amount of capital raised since July 2008. For that Shareholders have 23 North Stockyard producing wells, 1 Rainbow and a few others, also a number of prospects clearly identified in the quarterly. Assuming $8m cost per well and roughly 25% working interest that accounts for $48m cost.

Therefore proceeds from operations and continental have paid mgt salaries, other G&A and for the dusters which are inevitable in exploration required to build a junior O&G company. Odds on success for any oiler are not great and that view can be supported by looking at any ASX oil and gas company at the moment. Most dream to have a quarterly like the SSN one recently published, even more so in the current market conditions. Have a look at AKK, TTE, MAD, CTP if you wish to compare quarterlies performance and relative salaries.

Shareholder value has increased however share price has fallen because the oil price dropped from above $100/bbl to around $40-45/bbl. Gas prices have also dropped substantially. Market sentiment for O&G sector has affected all Oil and Gas companies around the world.

Have you calculated what the 9 mths result would have been had the oil price not dropped and how would your view of mgt performance change in that scenario? To help the oil produced in the 9 mths was 212,019 bbls that can be verified in the quarterly.

The numbers are there in black and white for anyone to validate but of course this is my opinion only and I do understand and have empathy for those who have seen their holding value decreased in this environment and do not wish to offend anyone. Whilst it hasn;t effected me too much here it has in other stocks however I pressed the button and I can live with that. Also I have empathy for mgt who must be gutted by the recent vote.

It's fine to be negative if people choose however also constructive to acknowledge the achievements when they occur and there have been many i the past year imo.
GLTA whatever you do or say.