Given there are alot of people I talk to reg on this thread I wanted to resend this as its own post to makee sre you see it. Make of it what you will and I am sure some will not like it but I don't like seeing people burnt. If I hav got the figures or oter things wrong please let me know what you think they should be and I will be happy to change my view.
Once again just my view based on my research.
I spoke to the company and based on other sites they expect approx 500,000 to 1,000,000 barrels from each well over there life. They are fairly short termers.
My GUESS is that with a 30% interest ater costs they will pick up approx $10-$15 per barrel.
So if they at produce at average of 750,000 barrells they will get the following;
$15 X 750,000 x 5 =$56,000,000 appox over the life of this project. (Which is obviously determined by there role out and choke).
Note however that according the the lastest quarterly there are no more than 1.169 billion shares on offer. A rise of over 900,000,000 since july 2009.
I understand that the company also intends to spend 12,000,000 of the profit payin off there debt to Mac Bank. That leaves approx $44,000,000 which divided by the no of share holders pts the value of all 5 wells if successful at most at approx 3.7 cents per share. So looks like the upside to this one if they find oil and all wells are exaughted is about the 3.6c you mentioned.
Good luck to all on ssn but for me I will stay away at this stage. With the traders moving in I think there will be some buring happening.
SSN Price at posting:
2.4¢ Sentiment: None Disclosure: Not Held
