I'll cross ramp the whole sector and say that most micro ASX listed oilers with tangible resources, operating in the US, including SEA are undervalued.
As Skyrocket says, SSN acreage is valued at something over 20m by the market notwithstanding the sale of an arguably lesser worth portion of it for $74m.
Pipeline assets, no matter how good or prospective receive very heavy discounts in comparison to their NPVs as is cash in the hands of any oiler. The discount would suggest that the oil business, looking forward, is most likely to be unprofitable which it is not.
This is all fine. If the SP was greater than the NPV I would sell. As a small time speculator, I'll happly wait until SSNs assets are more fully developed and results are booked before selling any to the "We will only look at historic accounting ratios brigade" lol.
Between SEA and SSN .. . . . SEA may have more reserves but SSN could, if it wanted to, buy those reserves. SSN's high cash position gives the company greater manouverability, in the short to medium term.
In the long term it is cash rather than oil, gold and commodity tangibles that may be at risk BUT, IMHO, SSN will not sit on the cash for too long.
cheers
SSN Price at posting:
5.7¢ Sentiment: Buy Disclosure: Held
