Ann: June 2012 Operations Update , page-5

It is not a good, nor a bad announcement imo. It has neutral content for me, but none-the-less a bit disappointing that there wasn't progress. The market will be it's irrational self, doesn't change the long-term prospects of SEA whatsoever.

Routine maintenance operations on a few of the Bakken wells is run of the mill stuff, nothing to worry about there.

The Wattenberg wells came in very nicely indeed, 90-110 boepd is definitely a good result considering the costs of each well (~$700,000).

From the sounds of Leon Pecha, the artificial gas lift has had mechanical problems and isn't supplying the expected amount of gas, hence the lower daily flow-back fluid volumes. It's hard to say what production capacity this well has, and at this stage that's not a good or bad thing.

On a positive note, "The well has been cutting oil and natural gas since it started flowing back", which is encouraging.

Using a 10% oil cut, which Sandridge's CEO stated (and most of Sandridge's well are in this area), and once again Sandridge's ~55% liquids rich gas component, that'd put this well at ~70-110 boepd using the current 300-500 barrels of fluid recovery per day, so it's got some life in the well if the mechanical issues can be resolved. Hopefully we can get an update on SEA's intentions with the well soon.