operational advisory ann out, page-7

It's going to be quite interesting really, if and when that special announcement comes, all these current wells producing at a sustainable rate and SSN hits the magic 1000 boepd net mark. Will the share price even move quite considerably? I suppose if it hits 2cents first before running to 3cents 50% gain for someone. As for most of us it means Jack Sh!t! Unfortunately the share price wont do much at all as share prices move on future activities and earnings and if the market thought much of what SSN is currently doing and what we may be producing by June the share price should be at least above 3 cents. We all know that they will hit 1000 boepd and that's what worries me because when they do we will probably be where we are now unless the oil price runs to $150 per barrel or oil and oil stocks becomes the flavour of the month again.

As for any other drilling the funds will initially come from debt unless management cost can come down it may not pay for a lot but at least it can reflect exactly the type of company that SSN is, which is not a billion dollar plus enterprise yet and not sure that it will ever be... Also going into debt should be a history lesson for all of us as they did not manage to spend the interest free $70,000,000 they had very wisely and if an ordinary shareholder holds more stock than TB you gotta wonder.

I hope hawk springs can be drilled at the planned 2nd Qr of this year which involves SSN finding someone to drill and fund their share of the drilling for a percentage of the project with CNOOC. As this is what I think will do it for us in terms of share price appreciation. Create a bit of excitement and awareness and if you believe Patterson's net value to SSN for the project of $360 million then that's the only thing I can see getting us into the teens if successful otherwise 2.5 cents we stay and going into higher debt. But going by their timetable that could be extended out to next year. I hope I'm proved wrong. Otherwise I'll take a huge loss on these little F...kers.