Ann: Napoleonville Farmout Completed , page-38

"In SSNs case they sold off part of there accerage and kept the best, but the land they were dealing with is relatively untested and quite expensive to drill. I see CHK are selling the land they aquired from SSN. And the well they drilled in the land they kept,well the jury is still out on that but in the meantime they are burning cash and everything seems to be taking ages."

"In our case we have land that has a long history of oil,has a 99% strike rate, is quick and cheap to drill and is surrounded by infrastructure in an oil friendly State and we have four wells drilled already. Even the gas is at a premium."

Hi there whisky49,

pretty much spot on with your comparison there.The Niobrara in SE Wyoming is still some way from being proven,which means a lot of $$ are still to be spent on proving it as a producer.If you compare the niobrara in SE Wyoming and the Niobrara in Colorado I think you will see quite a difference with the amount of producing wells,that are in the public domain at least.

I'm still reading and learning the GGP story and the PB history but you are spot on in saying the PB history is very well proven and, it's been done so many tines over.

The attraction to GGP for me is not the value of the acres they hold but, the less than 1% risk in the extensive drilling programme they have, some 110 wells in the next 4 years or so ??

While the Bakken is a proven winner and will be a definate $$ earner for SSN,they still have an amount of cash burn ahead of them in the Niobrara.Their 2 current appraisal wells are at the expensive of HAL but after that I think ?? it will start costing them so they really need to start producing the income from the Niobrara just to cover their costs there.

GGP has some 8,000 acres which are worth a fortune because of it's history,we know we will get the oil out at a far cheaper cost than the Bakken or the Niobrara.From memory the Bakken horizontal's are costing up around the $6-7 mill.??

I hate CR's as much as the next investor but if we suffer a little dilution now, which may mean we go the whole project alone I think it will be well worth the pain.At the risk of the oppies not being in the money ( as johnnyd9 said }, just look at how SSN ran north with some exciting news. I still think we have a big chance of the oppies being in !

Good luck