Time for the Board to come clean, page-7

Perhaps shareholders who have built up positions over time and who have had discussions with the BoD over the years could actively email/phone the company with some suggestions as to what concerns them and what information they feel is missing?

If I were a shareholder the following would seem reasonable to ask (but not sure you'd get an answer to all).

1. Are the hedges disclosed in the Sep 10Q the only remaining hedges for 2015?

2. Are those hedges all able to be monetized in Q1 or are they evenly spread over the year?

3. If no further hedges in place please explain clause 7.21 of the CA with MBO, cited below"
"7.21. Post Closing Obligations. Execute and deliver (a) by the earlier of (i) March 31, 2014 and (ii) the Total Outstandings exceeding fifty percent (50%) of the Borrowing Base then in effect, Swap Contracts between Borrower and a Swap Lender or Third Party Counterparty covering at least fifty percent (50%) of Borrower's aggregate Projected Oil and Gas Production for a term of at least twenty-four (24) months; "

4. Please explain so as to remove any ambiguity, what SSN includes in "lifting cost" of $29/Bbl and comment "production is economic"

5. In light if WELLHEAD PRICES (e.g. using pricing Bulletins from Flint Hills or PAA) please show the CASH MARGIN that SSN receives. E&P peers across America highlight Cash Margin (CM) as:
CM = Wellhead Price received - LOE - Production/Ad Valorem Taxes - Cash G&A - Interest Expense.
So as there is no ambiguity, this is before derivative settlement and does not include stockk based compensation

6. Reserves Report - will there be a new report done as of 31/12/14. Will Ryder Scott be certifying the report? Will Ryder Scott use the SEC allowed backward looking average of $94.99/Bbl for WTI and what will the costs/differentials be (and why does SSN not list these assumptions)

7. Will MBO use this backward looking Reserves NPV10 for the purposes of determining the BB? Does MBO have the right to use a different "price deck", say a more forward looking price deck of Nymex strip futures to calculate the Reserves NPV10 for the purpose of determining the BB?

8. Given that the AGM presentation (on Nov 11) which highlighted expected production in Q4 and 2015 so quickly became out of date on Dec 16, it is reasonable for SSN to reissue production guidance and that should have already been done. What is the 2015 production guidance by Qtr?

9. Given drilling curtailment, what Capex expenses are remaining in 2015 and when are they expected?

10. Given that SSN BoD must have a production estimate, knowledge of how the hedges roll off, knowledge of the wellhead pricing of non-hedged production, knowledge of full year cash cost of production, why doesn't SSN provide EBITDA estimates for its shareholders (even silly old Aussie has done an estimate based on data put out by SSN).

11. How confidant is SSN BoD the CA covenant of Debt/EBITDA multiple of 3.5 will not be breached?

12. In what ways is SSN prepared for a BB redetermination DOWNWARDS as has already been occurring?

And lucky last...

13. Assuming a +ve Nitrogen project at Bluff, how long would it be before operational cash flows to SSN and how much Capex would it require that SSN invest?


I'm sure there is more. The Qtrly may have some insights but doubtful on the specificity.

GLTA