Samson Oil & Gas Limited (AMEX:SSN) Recovering From Its August Lows

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Dallas, Texas 10/28/2013 (Financialstrend) – Samson Oil & Gas Limited (AMEX:SSN) is an Australia registered oil exploration company. It has a market capitalization of $54.4 million. The struggling company is still trying to recover from the August set back it had suffered after a confirmed buyer backed out of the sale agreement to purchase its Roosevelt project. Samson was expecting to net $13.5 million as net proceeds from this transaction which it was hoping to use to sustain operations and develop its other assets.

In the aftermath of cancellation of the sale agreement, the stock suffered a close to 8% dip in its market value. In order to tide over the situation, the oil and gas exploration company decided to sell half it’s holding in the North Stockyard project for close to $5.5 million. This was followed up by a request by the management to halt trading on the stock on NYSE till it completes a capital recharge program. The request was followed up with a announcement on August 22 that it completed allotting 32 million ordinary shares in addition to close to 12 million options to new investors in order to raise additional capital into the operations. This announcement sent the stock plunging 5.5% and the stock price was hovering around its 52 week low price valuations.

Since then the stock has managed to pull back and post significant recovery from August lows. As of trading on October 25, it was trading at $0.51 per share, up 0.4% from its previous day close. In the past month of trading it has recovered 4.5% and is trading close to 25% above its 52 week high valuation. In the interim, it has recorded loss of $11.7 million from operations over the past 12 months and has managed to post sales of $6.3 million in the same period.