moving onto better grounds , page-5

Given the present state of the market, and the current oil price, I personally would like to see cash from any JV applied to paying down/clearing off our debt position. If oil prices continue to degenerate as a result of market uncertainty/double-dip recessions resulting in less oil consumption, we do not want to be in a position where all proceeds have been invested in a drill/well-development program that results in oil production earning income below the cost of production (and consequentially cannot then repay our debt servicing costs).

If oil prices sag further and we have a war-chest to keep the company strong (and able to pick up cheap leases on compaies that may be over-leveraged in the Bakken and Niobrara plays), Samson can then capitalise on any rebound in the markets/US growth.

Consider me a conservative, but I fundamentally believe that we need to realise some value out of our acreage now, clear debt and focus on high-return plays in Bakken. Let others drill and prove out the viability of Niobrara, and let Samson be in a position where it can weather a storm where it can afford to shut down production if oil prices collapse. A double-dip recession probably won't happen, but I prefer the holes we dig into are for oil, not for ourselves...