countdown to ... approval may 30th, page-10

Buc, if FPEC back into 33.34% of both 20,000 acre tranches thats 13,336 acres x an estimated $200/acre = $2.67M. They would also have to re-pay the same WI proportion of well development costs incurred so far which would be 33.34% x (2 x $6.5M) for Aus 2 & Gretel = $4.33M. Total back-in repayment = $7.0M (approximately). Assuming SSN still have about $30M cash left that would give a cash balance of $37M entering into the well development program of 8-10 wells at Fort Peck, the 4 infill wells at Nth Stockyard, and SOA2 plus another horizontal well at Hawk Springs.

The 8-10 wells at Fort Peck alone will require 8-10 x $4.33M (66.67 WI x $6.5M) = $35-43M. The company is not yet cash flow positive and will not be sufficiently so as to avoid raising sufficient capital to meet the entirety of the stated drilling program.

Cheers, Sharks