2011 agm presentation, page-23

Here we go again.


- "Infill for Bakken.....I thought this was dismissed by Terry as some way down the track.Now all of a sudden its in the program.WHY??.Why wasn't it in the program 6 months ago.We know there's oil????If these wills had been drilled back to back 6 months ago,we could frac back to back now???,and have cash flow coming through by Christmas."

Dismissed by Terry......really, when ?? These wells have been in the programme for at least 18 months. Why haven't they been drilled yet ??? Zavanna are the operators of the North Stockyard field. It's there call. Effect on share price...ZERO




- " What happen to employing our own frac crew???Terry advised the market he was looking into this???.Market never advised of outcome.OK we know the outcome,hence why we have a WILL still not fraced after 6 months."

This is an easy one. Why do we need an announcement telling us Terry was unable to secure a frac crew. Anyway, whose going to pay their stand down time in between frac jobs. Too expensive and a waste of time. Effect on share price...ZERO



- "We again still have no fix dates.......this is not good enough!!"

If I recall, the whinging because Terry couldn't keep to fixed dates was like a broken record, so what's changed. We rely on sub-contractors for everything, remember. It's oil and gas exploration, not flower arranging. Effect on share price...ZERO



- "Defender:What was the outcome of the DFIT (Diagnostic Fracture Injection Test).The problems Defender is encountering must of been forewarned by this test???."

Who said there was any problems. Seems to me they knew exactly what to expect before they drilled a stone......


"As expected pre-drill, the Niobrara
Formation is “normally pressured” and because the frac fluid in the wellbore is a 5% sodium
chloride solution, it exerts a pressure on the formation that exceeds the formation pressure, thus
inhibiting the reservoir fluids flow.
This pressure in-balance will be overcome by installing a pump and reducing the fluid column (and
therefore the pressure) in the well bore. This is planned next week when tubing and a down-hole
pump will be installed."




- "we haven't seen nothing yet".You guys can make all the excuses you like,but I say it's about time some hard questions are put to SSN management.They have had a free ride for 18 months with everyone patting them on the back.They have not delivered!!!imho...."

Depends what your definition of " not delivered " is. I'll give it some thought while I'm enjoying my holidays in Hawaii and California at Xmass, thanks to Terry and the hard working team.


Bottom Line: Defender is still in the game until Terry informs us otherwise. Spirit of America will be drilled deep. In my opinion, Terry is doing the best job he possibly can during a less than favourable economic and political environment. I've said enough, good luck to everyone in the future and remember, the market will turn, it always does.



OMR