confirmation on orri wells from terry, page-36

Rcrow1

To simplify it further, CHK bought 24166 acres from SSN and with 160 acre spacing would give you approx 150 wells.

Now if you take 3.8% ORRI from 150 wells, SSN would have approx 6 wells at 100%WI, based on TBs estimation of 413MBOE this would translate to 2,478,000 barrels of oil at no cost to SSN.

The fact the ORRI is spread over the entire acreage will further de risk the project, but as you can see the revenue has so much upside potential, especially if you use CHK formula which would more than double the volume.

These wells can have a life span up to 20 - 30 years which will provide SSN cash flow for many many years to come. IMO they will be bought out well before such time.

GLTA