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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Mr.Gogo who wrote (41713)	3/12/2011 7:06:01 PM
From: E_K_S	Read Replies (1) \| Respond to of 78753

Re: SSN Presentation I did not cross check their calculations back to market cap and shares (ordinary) outstanding but in their summary page of my link of their presentation ( samsonoilandgas.com.au ), they show how they arrive at their market cap as of Feb 22, 2011 of $269.2 million. That is based on 99.8 million ADS shares. Each ADS represent 20 Ordinary shares. So I believe your Google number represent the outstanding number of "ordinary" shares. NOTE: The Yahoo outstanding shares are stated as 72.02 Million ( finance.yahoo.com ) which reflects the ADS share count. The important thing is the Valuation Metrics on page-21- states that their Niobrara Hawk Springs assets could contain (according to SSN) 36.1 mmstb which they value at NPV US$18.9 per bbl. That's equal to US$682 million or US$8.20 per (ADS) share. They state in their footnotes notes that the $18.9 per bbl represents the current forward price for Oil which may not prove to be accurate. Remember these are all estimates but as wells get drilled and they are able to record the actual oil recovery rates from each new production well, they can refine their 36.1 mmstb reserve number. On page-20- of their presentation estimates for this property range from 10 mmstb to 109 mmstb (that production range translates to $2.00/share to $24.00/share) That's a lot of potential upside for this stock. EKS