Hi Acreage,
TB has another preso at OGIS Apr 20 in New York - so there will be a further update.
Not that I'm agreeing with Chrys but I don't think the boepd goes down this qtr all things remaining equal. Going off the Feb'15 preso at Enercom, the Mar'15 Qtr was supposed to deliver about 1,350 boepd as the Qtrly average. As we all know from SSN ops reports that Qtrly avg was ~ 869 boped. TB did then forecast a drop in the Jun'15 and Sep'15 qtrly production average.
So less in the Mar'15 but more in the Jun'15 Qtr simply due to completions and production tie in IMO.
Now Chys' proposition is can SSN hold production steady at 1,000 boepd for the remainder of the year with the wells in hand that are ready to be flowed? Depends doesn't it more on Slawson and what price they turn on the well - SSN pretty clear in their ops advisories that recovery in oil price is the mitigating factor - they are just not clear on what that price is!
What is key is whether 1,000 boepd of production is the "magic number" that generates sufficient cash to remain within their covenants as they are today (fully expecting them to change soon). If so then the strategy will keep SSN going.
Buc, you've deflected all around the question (masterfully I might add) but why is it, that Hawk Springs is now TB's focus - why wasn't this high grade low cost project not pursued first? Bluff and conventional has been in SSN preso at least since this time 2011...
* I get that Bluff works well at $50 oil price - means it would have worked extremely well at $100 oil
* BTW - is that $50 oil sold at well head or is that $50 WTI index?
* I get that Bluff has much lower D&C well costs - est $3M - so it was always less than Hz MB/TF wells
* I get that Bluff is conventional oil - and so the decline is not severe
* Why if the prospect is so good was a JV not done much earlier to really go after this "high impacy" play - which if I read you correctly you think needs a JV to be done - and what kind of JV are you thinking of given SSN capital constraints at present (which can change).
TB has a slide from the Enercom preso (#28) on Liquidity - it will be interesting to see what that update is. $11.796M at Dec 31.
Hopefully TB can explain Bluff in less technical terms because the current set of non technical terms for Bluff conclusion simply say "Downdip oil leg is then a possibility". This prospect will require a lot more work and capital before its de-risked and a development plan designed to produce revenue.
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