As an attempt to put a liquidation value on SSN I think it's pretty sloppy - where is the value of cash on hand - at approx $25M that is around 30% of Winallin's quoted value - that's a pretty large and yet obvious error.
Shows the "substance" (my new favourite word) behind the thought that went into it - and into re-posting it given someone with your experience in O&G should have picked that up.
Returning back to my point about judging the outcome of a book after reading only the 1st chapter, here's one for the MAD fans (I've been doing a bit of research on that one - I don't hold so not cross-promoting it at all). Was reading their 2010 prospectus the other day (its a very good read btw, particularly in relation to salt domes if anyone wants to understand those better). At that stage, before the IPO, they had done two series of development wells, and in the prospectus they review some of the issues experienced with those wells:
In the 1st series of test/development wells in 2007-08, they report the following (do the problems sound familiar?):
In the 2nd drilling program in 2009-2010, they reported the following issues (again, sounds familiar):
And most of us know where MAD is now.
Nobody (least of all myself) can guarantee that the outcome here will be as successful as MAD, Harold Hamm or Jim Henry - and I don't see anyone attempting to make such guarantees. But its funny that there are some who attempt to convey a message that the outcome will be UNsuccessful and can do it with such CERTAINTY after only the 1st chapter of the book.
I will predict one thing with certainty - none of those negatives types would have been invested in MAD when it was still at 20c.
Cheers, Sharks.
SSN Price at posting:
5.7¢ Sentiment: Hold Disclosure: Held
