SSN 0.00% 1.5¢ samson oil & gas limited

C'mon, I liked the bean counter bit yesterday (my old man's was...

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    C'mon, I liked the bean counter bit yesterday (my old man's was an engineer so have copped heaps over the years!)

    On inside share activity in general we are not told the reason for the activity and it could just be they have surplus cash or personal stuff going on so a large assumption made if market assumes other. Nothing wrong with that but with current market sentiment I would wonder why any insider would be anything but cautious atm.

    Remuneration is voted on each year and shareholders have their say, there are plenty of companies around so personally don't have an issue with remuneration. Having said that I don't think performance should be linked to OP as that is outside mgt control and the skills and experience required in low OP are probably greater than high OP.

    On the drilling personally I wouldn't be drilling anything for a while but banking the cash and looking for some acquisitions or maybe passive farm in to other coy's activities who have run out of money.

    Financials for the "as is" situation as a producer look good to me. I think at the current prices and lack of drilling they are likely to be generating free cash and able to throttle the production to meet cash expectations, the higher price means they don't have to produce as much to meet the required results or alternatively can produce extra and get better cost recovery on the incremental production which should have better margin than the core production level. I expect the current production levels with our "expected" margin will be aimed at getting the bank covenant in line for June but we will have to wait an see on that.

    Another thing is looking at the ASX O&G sector and seeing all the trading halts and suspensions which has not occurred here and a credit to mgt, for many coy's the current situation is not a good time to be raising capital and I think the companies like SSN now generating cash will have a competitive advantage in the medium turn better placed to grow but that will take time to trickle down.

    I also think the points you have made are things we should all be considering. Current thinking imo needs some heavy weighting applied to mkt sentiment and whilst some coy's are likely to be travelling better than others the overall sentiment is poor and until that changes I expect more of the same so always good to be cautious unless confident.
    All my opinion only
    GLTA
 
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