the u.s. shale oil boom, page-17

I totally feel comfortable with SSN decision to not pay the extra funds.

Yes its disappointing we've had delays but at least we know Rodney #1-14H and Earl #1-13H
"expect to be CONCLUDED during the first quarter of 2011" (As per latest ann)

The Baken is extremely good for cashflow to SSN and has further potential with the 3 forks formation as well as downsizing to 320 acre spacing, but all this is just the side show IMO.

Its the Niobrara which will set us alight, SSN believe a possible 152 wells, we know they are in talks to secure LONG TERM drilling and Frac crews, this is where the real excitement will be in 2011 and onwards.


Below is SSN valuation Metrics for the Niobrara.

VALUATION METRICS
413,000 Bbls per well
1 Well per 160 acres
NPV 10 US$18.9 per bbl
99 wells at 50%
53 wells at 100%
Net SSN reserve 42.3 mmstb
NPV 10 US$799 million