We could discuss hours upon hours about whether or not certain CHK wells have an ORRI, try to work out what other payments might be allocated to SSN and what direction well paths should be, ect, ect.
You could do your head in trying to read between the lines with some of the announcements. I put my trust into TB regarding these matters and his ability to make it a success. SSN would be fully armed with all the information necessary for development, including the completion of the 3D Seismic interpretation and the current planning with the Joint venture team, Mountain Energy and Halliburton.
With only 2 - 3 weeks to go before we spud our first appraisal well, you cannot help but be excited as it has been a long time coming. TB has chosen the Defender location to drill because the fracture density is the greatest, so i will be expecting a good result. It will also be one of the most important wells SSN will ever drill as it will be the first in the Hawk Springs Project and the market will be watching this space very closely, especially with little data so far from the D J Basin where SSN are located.
Other companies to keep an eye on with holdings in D J Basin include
Chesapeake (CHK) had 800,000 acres in the Niobrara until CNOOC invested $1.27 billion to join in the action for a third of their holdings.
Marathon (MRO) recently bought into the D-J Basin by paying $5,000/acre for 177,000 net acres. Marathon will drill eight to 12 wells at this location in 2011, with a well cost of $4 million approx
Devon Energy (DVN) has 40,000 net acres just south of Samson's leasehold.
EOG Resources (EOG) has 300,000 net acres south of Samson's leasehold. EOG is currently the largest oil producer in the Niobrara.
PDC Energy (PETD) has 74,100 acres in the D-J Basin. PDC has an aggressive drilling program. In 2011, it is planning to drill 14 wells.
Noble Energy (NBL) has 830,000 net acres in the Wattenberg and northern D-J Basin of which 430,000 net acres are in the central D-J Basin.
Anadarko (APC) holds 900,000 acres in the D-J Basin. Continental Resources (CLR) has 71,712 net acres in the D-J Basin
REX Energy (REXX) has 45,000 net acres in the D-J Basin.
QEP Resources (QEP) has 154,600 acres in the Niobrara with 84,600 net acres in the D-J Basin.
Carrizo Oil and Gas (CRZO) has 61,000 net acres in the D-J Basin. Carrizo has drilled and fracced three horizontal D-J Basin wells to date, with a budget of $35 million for 2011.
SM Energy (SM): 25,000 acres with one of their D-J Basin wells avg IP 1075 boe/d
GLTA
SSN Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
