I can't disagree with my own figures .... the updated cash margin spreadsheet I posted suggested a possible $20.63/Boe margin this QTR with production at the Mar monthly rate and expenses in line with the Qtr and a modestly rising oil price for WTI to avg $53.20 in this Qtr.
Adds up to approx $2M cash generated for the Qtr.
So am well aware of that side of the equation. Question - how long is "absolutely no drilling for a while"?
3 Months, 6 months, 1 year?
It's the other side that is opaque. I'm certain we've both read the 10Q in detail as well as the recent IPAA presentation. If "a while" is 3 months then I agree - no drilling, its just the Bluff EPT which "will commence in May ... completed in 3 to 4 months".
Beyond that though..
South Prairie Birch Prospect "anticipated that this prospect could be drilled prior to September 30, 2105".
Hawk Springs - assuming EPT produces oil then the intent is to drill a downdip oil well.
Rainbow - intent to drill in Jan 2016.
New project - seismic end this year and drilling2 wells mid 2016.
That looks to me that SSN could possibly be drilling 1SP+1HS+4R+2NP = 8 wells (assuming a 4 well pad at Rainbow) in the 12months to mid 2016.
How much liquidity on the balance sheet is enough for all D&C plus seismic plus acreage acquisition plus infrastructure plus plus plus.
Now I going to bold this for effect only
"As a result of these operational constraints, during the quarter only 820 "well days" of the available 2,208 "well days" were on production during the quarter."
That text is REPEATED EXACTLY from the DEC QTRLY
The likelihood of that repeating for 2 consecutive would seem "unlikely". More likely editing error IMHO.
SSN Price at posting:
0.9¢ Sentiment: None Disclosure: Not Held
