Yes Buc, TB/SSN did well with Phase 1 of the plan (the workover portion). That was a classic example the capital efficiency I have been talking about (those incremental 1,000 bopd cost far less to produce than the bopd lost in decline)
So now they are in phase 2 with the stimulation program. Couple of things will happen "naturally". One of them is the decline associated with the workover program. That is kind of unknown (even to SSN) and something to watch for over the next months (which @Rob79 will most likely kindly do for us). That decline will have new production from the stimulation program replacing it and also new incremental growth. That wont be quite as capital efficient as the workover but still way ahead of NS numbers. Don't look for $1.5M to double the result of the $800K of the workover program. IMO you will be disappointed if you do.
SSN has a plan. They are executing on the plan with what appears to be a good deal of success so far. They need it to be sustainable and hopefully (this is the tricky part) the decline is more moderate than typical shale. That gets their production growth back without having to spend $5M on a well. Repairs the balance sheet and gives them better access to capital markets.
Need to see how +/-$50 (WTI) oil does for SSN over the Sep Qtr and this current Qtr. Should start seeing costs coming down to what it might be more longer term and what their real operating netback on FB is.
GFTA
SSN Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held
