Shareholder Briefing, page-42

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buc

8,052 Posts.

11

08/09/14

12:15

Post #: 13939876
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Originally posted by netstockings ↑

Thanks Leverage and Strazza for your summaries of the SH meetings
I would add my comments as such -
Terry Barr as always, was professional, relaxed, upfront, knowledgable, concessional and positive without being salesman like

Points of Interest

The oil Industry currently pours 24 billion into the Bakken per year because of the extreme and rapidly growing confidence in this region

The average rate of return on investment within the Bakken is 60% which is constantly being tested and evaluated and is always found to be reliable

SSN will not need to get back in the equity market any time soon

The Australian equity market does not currently appreciate the value and increasing importance of the Bakken

SSN has a substantial increase in production coming in the next weeks

3P Reserves should be significantly increased with the 3 Forks production results

Re-rating of SSN should come with either or both the 3 Forks and Rainbow results

The SSN operating cost of a BOE is US $20 and the capital cost in also US $20 - i.e. US $40 per BOE

Currently SSN has estimated each BOE has a US $70 profit margin

SSN are breaking even on a cost basis currently on 500 BOE/day

North Stockyard Project ( with the Three Forks drilling ) combined with the Rainbow Project will take approximately two and a half years to complete as currently planned which should continue to consolidate and underpin the future SP of SSN

The Three Forks wells are longer with bigger fraccs & have virgin reservoir pressure which should equate to IP and ongoing production rates equivalent to the Middle Bakken wells

Blackdog continues to be a monster well, grossing

US $ 10,000,000 to date, which is twice the rate and the numbers that it was configured for.

Expand

Excellent reporting netstockings, leverage, strazza.

" The first level of log pay ( out of three ) found in the Bluff drill will be tested in the next few weeks"

"At least one of the pays/zones is decent and would be subject to a vertical drill & have to be fracced & would be anticipated to yield 400-500 BOE/day making it economical"

I'm now thinking of the 18 000 acres SSN could "maybe" buy back into Chesapeake next door, for cheap.
Last edited by buc: 08/09/14

SSN Price at posting: 2.2¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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