Debt and Equity raise will now cover all planned drilling until Dec 2016, timing issue as Timmy explained.
Without the CR SSN could only participate in one TF well not four
Blackdog is a monster – designed by EOG who are leaders. EOG are drilling and fracking such long laterals with so much proppant and sand that to quote TB “They’ve bought a bloody sand mine ! “
Blackdog exceeded X3 their internal curves/expectations. Other wells now following this design.
Break even is 400BOPD @ $100 POO
TF are virgin wells. Formation pressure is there. Opportunity to drill these too good to pass up hence the CR. 4 TF wells to spud in May
Mid year for retrieving the remaining stuck pipe in the bong. Confident that it will be fished out – 4 jointed sections and 150 feet of free pipe to go.
Rainbow similar to NSY field but not quite as productive – CLR to drill first well in June. Good nethertheless.
SSN will probably reduce their WI in the Western unit and another company, maybe CLR to act as operator.
Terry and the board do recognize their poor record of drilling success.
Terry agreed that staff and Board costs too high. In the US salary market has to be met and SSN at lower end of costs in comparison to other companies. As timmy notated -a reduction in company costs already underway.
Bluff could be a game changer, with a significant change to reserves and BOPD production curve over the next years.
Finalizing Rig contract which is finishing drilling another project – in 3 weeks it will move over to complete our Bluff Chinese still only participating in one well.
South Prairie not a company maker but good economics. Drilling commencing in June.
Finally - some interesting news TB is also negotiating with a state government in a different US state ( our backyard or close ) for a joint Bakken venture ( preliminary results of talks will be known in a few weeks ) re acquisition of another property.
It will be hard work to add to portfolio, but - If successful the result could be HUGE and a ‘Barn Burner’
Like Timmy I also attended the meeting with anger and wanting explanations. TB, as usual, had a frank and honest discussion and I came away relieved and extremely positive. I will buy more SSN at lower prices with optimism now.
Cheers netstockings
SSN Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
