On Tuesday the 5th of July I met with Terry one on one in Melbourne and spent 50 minutes discussing the Australia Road Show Presentation and later asked some questions regarding their operations.
I would sincerely like to thank Terry for his time due to his busy schedule. He was accommodating and very professional.
I have written down some of Terry's responses of which i think are relevant to Shareholders.
Hawk Springs
TB believes the results of the CHK State wells which SSN have an interest in, will more than likely be published as SSN has an obligation to disclose it to their share holders. (A commercial arrangement with discloser obligations) but couldn't guarantee it
CHK asked SSN to partner in the 2 wells because part of the horizontal did go into SSN leases.
Section 29 of the Hawk Springs Project location is the best of the best no question about it.
CHK has drilled and Fraced 4 wells to date and TB has no idea of the results and no ORRI payments received to date.
The 3.8% ORRI is the average, TB said it would vary from well to well, some more some less.
Roosevelt Project
Roosevelt Project will shoot 3D not sure what time frame.
2 D Seismic has been completed on the acreage but SSN will need to purchase it from a broker so they can do the mapping which will ultimately help locate the areas for the 3 D Seismic, TB said its not necessary for the Bakken to have 3D but it was more for the Conventional targets such as the Red River.
Enercom have 3 wells per 640 sections TB believes a section can produce 4 wells or 160 acre spacing.
FPEC didn't want to go with a bigger company to partner with, believing the acres could possibly be put into their inventory and not drilled for years, they wanted immediate action, hence SSN drilling by years end.
PFEC will have 90 days after the frac of the well to make a decision to buy back in.
TB sees the Roosevelt project has similar potential to the Williston Basin in North Dakota and very confident in obtaining all 3 Tranches.
Bakken North Dakota
No time table to test the 3 forks formation or infill wells to date
TB will inform the market shortly regarding an update on its capital expenditure which will include drilling costs and cash position now and by years end. He will also update Diamondback and the State GC New Mexico wells.
TB loves his Yachts so The Hawk Spring Wells named from US 12 metre Yachts and the Roosevelt wells are Australian 12 meter yachts.
Australia 11 won the Americas cup hence the name for the first well. Hopefully some Cinergy there!!
Gretel 2, Australia 4, Kookaburra will be the names of some of the wells in the Roosevelt project.
Terry also reads Hot Copper and said he may look into a weekly BLOG on the SSN website to help investors further understand company announcements.
I hope you find this helpful !!!
Regards matsim
Disclaimer These are my interpretations of my conversation with Terry and i have tried to be accurate as possible but please do your own research.
SSN Price at posting:
13.5¢ Sentiment: Hold Disclosure: Held
