Current SP is also still factoring in that there is still some risk in the sale even though there is a BINDING Agreement. Quote: "The purchase agreement also provides that if Samson is unable to deliver marketable title to a significant portion of the contracted properties, then the purchaser has the right, but not the obligation, to cancel the purchase transaction." Unquote.
So, there is still a legal exit out of the agreement if the buyer wishes if SSN does not meet their obligations. We do not know enough about the Binding Agreement (terms of sale contract) to draw conclusions of the sale terms. I am confident the sale won't fall through and all is good. I estimate that the SP will stabilise in the low 0.4c until end July when money is in the bank with a re-rating soon after this is confirmed with an annoucement that we will all frame and hang on the wall. But the, IMO, deal is not done until the money is in the bank. But it could be assumed that the rest is only formalities.
I would hope that management's goal is for the US$79M as the additional $18M will go along way in current and future drills.
Cheers, SUDs
SSN Price at posting:
3.9¢ Sentiment: LT Buy Disclosure: Held
