ssn enercom presentation, page-64

It really is a case of damned if you do and damned if you dont. TB is criticised when progress is too slow and not enough production, and now he is setting an aggressive growth agenda and we have Goldie waving the CR flag.

Personally I think the majority has spoken by way of market response to TB's announced aggressive growth agenda - look at the SP in the last 2 days! And why? Because the market values a company with strong earnings growth from selling barrels of oil, not from earning interest in the bank.

To date Terry hasnt even been able to spend the amount of capital in the program, because progress has been so slow. Thats why we still have $10M more in the bank than was supposed to be there. Let him get the balance down to $10M or so and lets see where we are then. I'm tipping if the balance is that low its because we have another half a dozen or more wells producing oil. And if they are FP wells producing at a stable 200+ bopd, then that would be a net 100+ bopd to SSN with a 66.7% NWI, and with Aus2, Gretel, and the balance of the current drilling program, even 6 out of 12 wells would probably see us in the 1000-1500 net bopd production range. Where will the SP be in that case? i suspect it'll be north of 30c, and at that price if he needs to do a CR on the back of proven growth performance then let him have the money I say. But he certainly doesnt need to do a CR now at 14c and $42M in the bank - imo.

In terms of how he'll raise the money - look at his track record. He doesnt like debt thats clear. He does like JV's and selling land that has increased in value. It'll probably be one of those options before a CR I would think.

Aggressive growth costs money. But that is what the market appears to want. If my shares are worth 30+c and the company is producing 1000-1500 net bopd , I wont mind if he raises money for further growth via any means.

Cheers, Sharks.