2015 - per the 10K, page-27

Cmon, I agree on your 10Q/10k comment, not only for the numbers provided but for the sombre reminder of the risks involved in O&G operations. I think this scene from Armageddon gives a perspective on the chances of success for small O&G in general and there are many examples of ASX juniors that have been unable to achieve what has been done here.


I saw the RZ article as a positive for SSN who I believe can increase production in 2016 YOY. Richard states "Holding the line on production at $50 oil is an ambitious target - both for Whiting and the industry as a whole - and would be a major accomplishment if achieved." That is for Whiting though but equally applicable here imo. In time I think it likely that more will realise the market has applied general rules to all and not taken the time to study specific exceptions to the rule. This imo is where the opportunities currently exist but as you correctly say involves reading announcements and doing research which takes a lot of time.

The above comment is supported by the reserve disclosures at the bottom of the 10k. The basis of both the Ryder Scott and NSA Inc. reserve reports are provided and show on $38k future development cost in the calculation of reserve value and the production cost used by my calcs is $15.12 in the Ryder Scott report. Comparison of the two reports is interesting.

Another point is the SSN decline should be shallower in the future as the wells age and therefore less capex required in future to maintain or increase production levels which is ideal for a low OP environment. For most companies this will be difficult and imo demonstrates good mgt and planning to get in this unique position. 2017 is a long time away and plenty of time to develop further existing assets or bring on new ones.
Have a great weekend
Cheers