"We have reached an agreement with Mutual of Omaha Bank which requires us to provide it, on or before March 31, 2018 with (a) an executed purchase and sale agreement evidencing the sale of Samson and its subsidiaries or our respective businesses and assets, or (b) a fully-executed letter of intent or other form of commitment letter from a credible lender or other third party reflecting a proposed refinance or payment of Samson’s outstanding obligations. The sale or refinance must be completed by May 31, 2018 under such circumstances that allows Mutual of Omaha Bank to be fully repaid."
"We have engaged PLS, an energy advisory group to market our assets. Based on our current financial position we may be required to accept terms less favorable than would otherwise be available to us. There also can be no assurances that we will be successful in renegotiation or refinancing of our debt or our efforts explore the sale of some or all of our assets. These factors indicate there is substantial doubt about our ability to continue as a going concern."
Before anyone says anything about company being sold for its Net Operating Losses value, any form of recapitalization will effectively be a change in control and not all those accumulated losses stay (had that happen before). SSN also pointing that out now.
Borrowing base re-determination delayed until March 2018?? (Guessing it would be a reduction anyway even though oil price up due to SSN economics).
Cash on Hand $0.8M
Accounts Receivable $1.6M
Accounts Payable $5.1M
Roughly WC capital deficit of $2.7M. Another large loss to be realized this Q on derivative position.
Keep losing cash on operating FB (because of their (SSN) high cost and declining production because no capital available for workovers etc).
Tick-tock .... Gunna need to do something by Mar 31. Times up.
SSN Price at posting:
0.2¢ Sentiment: None Disclosure: Held
