Thanks @Rob79 that helps. These questions are quick
1. The legacy NS/R production table ... is that 19,617 for Jan BO or BOE? (my estimate for the Qtr total is around 67,443 BOE or 741boepd. Could be high because of gas. Just oil I have ~52,000)
2. Re the value subtracted from sale for hydrocarbons produced ... yes that caught us both by surprise by how low it was (implied in the overall sale price). Maybe I'll never get the proforma and we'll never know the true answer. Can't believe the LOE could be that much higher to cause that drop. There could be many reasons not the least of which could be more equipment failures leading to more shut-ins or even a mgmt decision to curtail (i.e shut-in) production from that field until acquisition completed.
The report has well status associated with it (A) Active and (IA) for Inactive - shut-in for >=3 but =< 12 months. Just casting my eye over them, there are 15 IA wells and 14 A in the 29 listed.
From a production view then, those 14 (A) wells produced close to 3,000 BO or 100 bopd (don't get to excited as that's 7 bopd/well - stripper wells in other words). SSN in the Dec Qtrly talked about 41 producing wells and 17 PDNP (which I suspect was the IA well list at that time). Just TOL, there must be 25 other (A) wells in the acquisition of which possibly 15 have become (IA). If so then I agree the LOE did go up substantially.
Would be nice to see a current list from SSN of total (A) wells, their current production and total (IA) - which I suspect is 29 - and their last month of production as well as rate just prior to shut-in to (IA).
3. Part of the acquisition is in Montana. Any insight there.
4. Financials - pretty comfortable with my current understanding and modeling. Have you seen anything "objectionable" or "unreasonable" (upside or downside).
Regards and GFTA
SSN Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
