There would be a correlation because the 2 graphs are clearly showing a tendancy for prices to vary together. Simple as that - look at the graphs.
Otherwise and as to following the oil price movement, being a (sadly poorly) producing oil stock with proved reserves, save for some other fundamental variable the price of oil is pretty much one of the most important factors there is.
Now, considering that since the August triple whammy of the cap raise, failed land sale and Billabong disaster - all of which lead to the SP to come back below 3c and the forced(?) selling of SSN's 50% interest in its NS assets to Slawson - SSN has essentially been in a holding pattern, with there having been no unexpected or price sensitive news whatsoever. Slawson has just been diligently drilling away at wells that the markert knew were going to be drilled, there has been no real substantive or detailed new news of any other land to be drilled (and therefore no unexpected potential increase in flows rates to be seen in the near future) and oil has fallen 14% from its peak. SSN, being leveraged to oil prices like any oil stock is, has fallen much more on a percentage basis but in a similar fashion. In the past 3 months following the August disaster, what else but oil price and standard technical variance has had any impact on the SP?
SSN Price at posting:
2.5¢ Sentiment: ST Buy Disclosure: Held
