The briefing today in Sydney had about 9 shareholders show up with TB and Victor Rudeno and a suit from Pattersons.
It went from 12pm to about 1:30pm and I came away with a fairly positivie impression of the company but I've had those before :)
TB was grilled by a few holders including myself on some issues.
I'll write a few points and they are probalby in no logical order and also don't quote me on everything as I may have heard it wrong.
S & A Frac is up to about stagge 5 and should be finished in about 4 days.
Initial production rates from S & A should be known in about 4 days.
They are going to hold the production back a bit so expect about 1000BOPD as this gives better long term oil yield.
The side track of S&A will not effect production at all and may actually add to production as it has created a greater surface area.
We could acheive up to a 20% increase in the EUR of the stockyard wells compared to the Zvanna ones as the tech has improved. Now using a "hesitation" Frac teqnique. They will have a go at fixing up the bong after finish the frac of S & A and are in talks with Shlumberger on how to do it. They are proposing to use thinner walled pipe that will mean they will only have to mill the concrete out and not the steel, I've probably left alot of detials of on this. If they had to mill both the concrete and steel it would be about 10ft/hour and multiple costly pipe trips and mill head changes.
Someone that I suspect was Scrat asked about what skills SSN was missing and this would explain our poor operational performance. TB countered this by saying that Slawson has gone with our design for the wells and also taken on our contractors on. Basically stuff happens.
TB was putting a bit of a positive spin on the turning the Roosvelt $200/acre into $13mil but then someone mentioned, you spent $20mil drilling to wells on it.
Slawson is using Liberty oil services and they initially wanted to differ from SSN's well and frac design but have now decicded to go with what we had originally proposed.
The Roosvelt buyer did have $25mil but he neglected to tell SSN that his funding party wanted to see him raise another $75mil for the field developement before they would let him release the cash.
The failed buyers efforts in selling the deal has partly resulted in another 4 buyers stepping up who were potential partners to the original buyer.
The Indian tribes are not happy with the failed buyer as he promisied alot of drilling would happen but SSN is still in their good books. The tribes have an election soon so there is pressure from the comunity to get a return but we have alreaady done out end of the deal.
the interest rate on the $10mil debt facility is 6.8%. We where offered a facility of $35mil from a big fund quite a while ago but it essentially ment that 20% of profits would have gone out the door so not in our interest.
They are looking at more Bakken land but all the focus is now on getting Nth stcokyard up and running.
Rudenno said that about 400BOEPD would cover the companies running costs but of course we will have epxloration expenditure out the door.
We are funeded to drill about 8 wells aftetr the Roosvelt money comes in.
Discussions about Hawk springs permain targets are ongoing with mmore parties ontop of the chineese and one of parties was part of the Slawson deal but not Slawson I believe.
They will include more detail in the top 20 list for ADR holders so we can see who is actually holding what.
The US broker sold half of the RI to 7 individuals who each bought from $500K to $1mil dollars of shares.
TB got grilled about spending $76mil and little to show for it but countered that.
Also grilled about the down time on the current producers but said we are pushing Zvanna to improve and he thinks they used over rated surface pump for the available liquids.
Slawson and SSN is goind to use the lessons on the Zvannaa wells to improve the reliability or our new wells and things such as coated rods to counter the salt etc.
Sounded like defender Frac is a low priority and HAL dont want to re-frac it with ceramic as there is some disagreemnet if that would help.
I'll post any other coments as I remember them and sorry about the spelling and gramar.
SSN Price at posting:
2.4¢ Sentiment: LT Buy Disclosure: Held
