Who is attending the Shareholder Briefing today?, page-20

I attended the shareholder Briefing in Melbourne.
Sorry about the lateness of posting but my work got in the way, as usual.

6 attendants.
Oil Price and its future was our first discussion.
TB believes like many others that the price is most directly linked to GeoPolitics and the US Economy.
TB can't predict future market prices for oil ( a given ). When pushed he tends to follow more closely - T Boone Pickens and his predictions but "who actually knows".
He mentioned that T Boone Pickens predicts a return to $70 BOE by Christmas - of course, nothing is set in stone.

BLUFF

Latest test indicates that the well would have to flow for at least 12 months to determine whether oil or water present at interface and then still may not be predictive needing a even greater lengthy flow back period.
There is no oil or water currently.
This will be announced shortly
Therefore it has not been proven one way or another.
The original consensus was to spend $ 1oo,ooo dollars trying to determine if the oil leg was there. Terry believed all along that a $ 3m vertical well was required to determine this one way or another but company and partners not prepared to outlay funds.
Depending on future, economics etc - the vertical well drill may still be an option for discovery.

There is no commercial benefit from the N2.
Bluff will be used as a Storage Facility in the near future
Unknown commercial value at this stage as it has not been explored but some value.
SSN would sell Storage Facility to another company.

Above the Permian at Bluff there is still 52 feet of log pay
"Not a company maker but potentially profitable"

PARADOX

"Very beneficial" to SSN.

Acquired from State Instrumentality - long standing community State involvement and morally sound supporting children and their education by profiting from mining leases. Great to deal with.

Nearly reached agreement with Potash miner - last stumbling block a 'dirt road' that SSN has to ensure is maintained to standard for access. Maybe will involve 50K-100K in trust.

Very Decent economics at $50 BOE.

Next door to a very productive area with Close-ology which is thought to be highly applicable.

Asked why Fidelity Mining didn't acquire this lease - "they have enough already"
Exploration Manager of Fidelity consulting with SSN and has indicated "highly prospective area"
SSN have viable drilling plan ( same as Fidelity )
A well proven zone with natural fractures which will dictate productive wells

SSN are looking for a partner and will finance through an industry participant - SSN will hold 25 % contribution.
Early days yet with conferences and discussions - lots of interest "but nobody has signed a cheque yet"
Can do 3D and first couple of wells through company deal and then internally fund from thereon in.
Hoping to start December 2015

SSN

Sufficient liquidity to survive.
Absolutely no plans for CR, now or in the future.
Great relationship with Mutual of Omaha Bank.
Very positive - CEO of bank respects Aussie's up front attitude and meets with TB socially and professionally - & in fact wanting SSN to accept more funds to acquire assets or to fund future projects.
To the Bank - SSN - very low maintenance compared with other US companies
Our largest SH - positive and supportive and meets regularly with TB

Anyway that's all folks
Hope it helps you all with your investment decisions
For the record - I'm staying with SSN

cheers
netstockings