TOTB, yep it will be interesting to see which is the most capital efficient - the PUDs of FB or CC appraisal and development. One certain thing, the next $6M of Capex ought to be put into the acid stimulation to capture the rest of the PDNP.
True colors coming out again I see Buc. Once again demonstrating your limited view. Of course you must have been selling while advising others to buy if you're claiming to have made money. Rinse and repeat - I get it - excellent trading strategy and allows you to say you held onto your (small?) core holding and sold your trading parcel.
Just doing a little rewind to thread 15269477 back to 15th May 2015 (yes over a year ago) started by Dougfr and titled "Is it time to sell some assets?" My input was to suggest a sale of NS...
"Their biggest operators are Slawson and Continental so again a good fit id SSN wanted to sell NS and/or Rainbow. The issue of course in selling NS the first $19M is going straight to MOB. Hard to see anyone paying more than say 80% of NPV10 (based on NYMEX strip) so call it $30M and SSN nets $11M.....Maybe a sale of NS is the right thing to do and go aggressively for the final big score?"
Fast forward to present time and SSN has sold NS for $15M or roughly 87% of the PV10 (congratulations to TB for getting a better than fair price IMO). If SSN sold it a year ago and got 87% of PV10 it would have amount to $$32.65M. Waiting a year cost net $17M which is far in excess of any net cash flow from sale of hydrocarbons. That was my point back then suggesting an early monetization of the asset.
Of course the howlers responded with comments in kind best represented by this beauty
"Comnaussie,
You can't be serious to suggest "Maybe a sale of NS is the right thing to do and go aggressively for the final big score?"
What would Samson net from this sale again in your opinion? 11$ million? This would be like selling the branch you are sitting on. A managerial self-demolition IMHO. Better keep crunching your numbers and doing your calcs. Hehe."
Interesting that now its considered a genius move. No, now it was a necessary move forced by the bank and well done selling it for that price in this market (would have been easier a year ago). The real (and IMO only) genius move was the FB acquisition of large PDNP to juice SSN capital efficiency and actually earn a real return (hopefully it all goes according to plan).
Some of us are just more factual and dare I say honest than others, is my response to you Buc.
SSN Price at posting:
0.5¢ Sentiment: None Disclosure: Not Held
