Ange09, great post.I don't know if some of you have seen this...

Ange09, great post.

I don't know if some of you have seen this analysis by someone on the message board on yahoo finance (sorry if it has been posted by others but i do not remeber seing it). They make a really interesting point about the value of SSN (please note this is not my work):



"Now that Samson's rights offering is completed they have 58.5M ADS shares o/s and have reduced debt to $11.7M. These 58.5M shares priced at $.55 equate to a market cap of $32.2M.

This $32.2M market cap combined with $5M cash and $11.7M debt currently has them priced at a Total Enterprise Value of only $38.9M.

Samsons proved developed producing reserves are mostly gas and had a PV10 value as of 9/30/09 of $19.045M based on 9/30/09 quarter end pricing of $3.085. Based on the year end gas price of $5.535 their year end PDP PV10 reserve value should be close to $34M.

Therefore, Samson is currently being priced at only the value of their proved developed producing reserves and is not receiving any value for their probable and possible reserves or any of their very valuable vast leasehold acreage positions.

Samson's Bakken acreage is only a small percentage of the company's overall growth potential, but is VERY important from an immediate cash flow perspective.

Samson should see fantastic results and some major upside from their Bakken participation, but they are limited to 30% ownership in five 640 acre spacing units and 10% ownership in one producing well on an additional 640 acre spacing unit. Samson expects to participate for 30% in three wells on this acreage during the first half of 2010.

With infill drilling each 640 acre spacing unit could eventually have two Bakken wells and two Three Forks formation wells.

Samsony also has additional near term upside from their shallow Texas onshore Gulf coast prospects offsetting existing producers and MAJOR long term value from their extensive Baxter and Niorabara/Pierre Shale acreage.

Samson has 40,800 net acres in the Wyoming Baxter Shale and 50% ownership of 100,000 net acres in the Wyoming DJ Basin Niorobara/Pierre Shale each of which are very valuable.

They have contributed 6,500 acres of their Baxter shale to the Rubicon Unit with Devon. It appears that rising gas prices and horizontal drilling should prove beneficial for the long term value for each of these shale formations."