How times have changed.........
acreage post from 2011
price at posting : 14c
Well I thought it was time I revisited this company and my reasons for investing.
In my mind SSN, while having some hiccups over the last month or so ( many no fault of their own ) is still a pretty good investment and will, eventually turn into a very exciting one.There have been lots of changes with this company over the last 8-12 months, some of which have happened so quick I find it difficult and sometimes confusing to keep up with. This is why I went back, revised and, confirmed in my mind, why I have my hard earned, backing Terry and his small team of 6 very professional and hard working people.
1) Great leadership with TB
2) The team of TB and John Lockeridge in the Niobrara is second to none !
3) Exciting joint ventures with Chesapeake,Halliburton and a proven long term partnership in the Bakken with Zavanna.
4) These JVs gives us access to services,technology and experience in drilling and fracking,at a time when the industry is being slowed down because of a lack of these resources.
5) Zero debt and $60 mill in the bank
6) Income from the March Quart showed $1.4 mill and increasing .This figure would have been a good deal higher if it wasnt for 30 days of down time on the Gene well and Gas income was less than half because of the sale of Lookout Wash and Jonah properties.
7) Bakken production will soon increase from a total of 6 wells and eventually SSN will have 3 infills and an appraisal well in the three forks running, possibly by the end of the calendar year?
8) Niobrara 3D seismic complete and analyzed.The 3D covers an area of 41,000 acres which is more than double SSNs previous holding of 17,000 acres.This is why we have recently seen TB purchase a further 960 acres which ajoins our current holdings in and around Townships 24,25. Also this larger coverage may well present TB with further projects by getting the likes of CHK,HAL etc a look see of the data.Possibly another way of furthering our income base ?
9) 1 x 1 appraisal wells will be drilled by HAL at no cash expense to SSN or ME.Once the results of this/these wells are in,SSN will plan a full scale development programme for the Goshen area involving at least 2 rigs as long as the market conditions warrant the outlay
10) The hawk Springs ( Niobrara ) project has many advantageous conditions which mant projects in the Niobrara are struggling to find.They are
A; Surface terrain predominantly flat which makes access and mobility easier and more cost affective.
B; Quality paved roads for easy resource transport,
infrastructure transport.
C; Oil receiving truck terminal within 10 KMs of the project and also is capable of receiving oil delivered by pipeline.
D; The terminal has access to oil refineries ( very short supply currently )in Wyoming,Utah and Colorado.
E; A major commercial grade railway just north of the project,which is yet to have a receiving depot built.
F; A major Gas pipeline crosses the middle of the project area.
G; Possibility of the NG being used for NG fired power plants at the near by electrical substations.
11) We currently have 10 ( unconfirmed ) ORRI wells in the pipeline ( 3.8% ) of which CHK have 3 currently producing ( unconfirmed ) 2 more ORRI wells in the pipeline as of this week.12.5% and 25% royalties to SSN.All these will be contributing factors in our expecting increase in income which should show up in the next two Quarterly statements.
12) Diamondback project on the Gulf coast to see some movements very soon ( was due to start this month ).
Scope for expansion of projects,income and our company.
Samson Oil and Gas in my mind have many opportunities to be able to turn from a small company to medium size one.
Firstly our Bakken play has a number of different ways of expansion and most are already in play.6 wells will soon ( depending on commercial arrangements ) be expanded to 10 with our 320 acre infills.TB is currently in the market for a further project in McKenzie County and also he is searching the Bakken in Montana and Western N Dakota.
Second,the Niobrara even though we are still at the embryonic stages of its life,we already have numerous avenues to go downso we can expand.Firstly we have CHK and HAL working with us on 2 and now as of this week 3 different projects.These alone have the contracts written so that we are able to grow the projects, as long as certain milestones are reached at certain stages and of course the results out of the ground meet expectations.
TB is currently still looking for a further 3,000 acres to expand our holdings.900 acres recently purchased.
So why am I invested in this company ? I think it is pretty obvious !
NONE OF THE ABOVE IS INVESTMENT ADVICE.THESE ARE ALL JUST MY RAMBLINGS AND A WAY FOR ME TO FILL IN A QUIET DAY AT WORK.
http://hotcopper.com.au/threads/why...-better.1473215/?post_id=8499982#.VTMRNSGqqko
