Sure but then the line up to buy those other assets would be how long?
To recap SSN on Roosevelt, the two Bakken wells drilled in 2011 and 2012 have proven to be uneconomic. Got some seismic over the 30,000 net acres courtesy Momentus. SSN wrote off the balance of their capitalized costs of $8.1M in Sep'14 Qtr and don't expect to spend further funds.
To recap SSN on Sth Prairie, 1st well (Matson) a dry hole, the 2nd well (York) was also dry & abandoned and the JV no has no further exploration plans. SSN wrote off $2.5M in capitalized costs but noted their election to participate in the 900 acre Birch prospect - Sep 15 well?
Who would buy these properties in the present environment? I think dirt cheap is optimistic.
To recap SSN on Rainbow, took a $2.8M impairment charge but that is really just an adjustment to carrying value (and they can get it back as oil rises). So this project would have "value" to the right buyer (such as NOG) but the project is really almost 100% PUD - and so will be valued accordingly. How much would 950 acres of prime acreage fetch?
Sabretooth would fetch how much?
The thought of selling NS is the simply the early monetization of a revenue stream over time. It happens ALL THE TIME in O&G, especially in conventionals but also in shales where the acquisition is made after the high decline period (so maybe 3+ years into production - buying the production tail so to speak). There are specific companies set up as partnerships that do this.
SSN Price at posting:
0.9¢ Sentiment: None Disclosure: Not Held
