yes - essentially you are correct (those with production can still generate cash, even with WTI @ 59+/-) .....
for SSN - one needs to know "SWD's reqd", facility sizes / constraints (3rd party) / pipeline capacity & compression / well spacing for full field development versus where they are now.......
what you may be missing is:
1. they shoudnt drill new wells that are PV10 -ve (ie production growth stops until OP >65-70 +/-) ....
2. what happens if OP stays stagneent, and the bank changes the % for PDP (ie they chg the rules of the game)
3. what do investors own AFTER the banks are paid back ....
4. what is the joint ventures development "scheduale" (ie larger co's may have different rate of return requirement to SSN ......)
rgds
V_H
SSN Price at posting:
0.8¢ Sentiment: None Disclosure: Not Held
