No angle - I am thinking of investing myself but holding off right now. I just think that many of the valuations that are being thrown around are assuming that the DJ basin acreage is proven - I don't know that there is enough evidence to say that is the case yet. If I had to gamble on it, then I would say yes it will be profitable at current oil prices but no one knows for certain.
Interested to hear others thoughts as to why or why not the niobara acreage will be profitable. Any info about the CHK wells, any activity by DVN etc?
The other thing which no one really talks about is that SSN has very high operational leverage. If the price of oil goes to $70 and the price of drilling/fraccing increases moderately. Most of SSN's operations will be close to breakeven in the best case scenario. Having said that, if the price of oil goes to $130, SSN will do very well indeed.
Yes TB has proven himself to be a sharp operator and a consummate deal maker but it is still up for debate whether goshen county niobara is a goer.
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