Ann: December 2014 Quarterly Report and Appendix 5B, page-6

It would. A big operator estimates using ESP 14% of the time during Q4.

Turn your attention to NS, which has 4 producing intervals with MB and TF1 fully drilled at 8 and 11 wells. I think you have 1/7 TF2 wells drilled and 0/7 TF3 wells drilled - s0 13 to go. (I'd put up some slides and data from CLR but since its not about SSN I wouldn't want to have the wrath of Leverage fall upon me and be booted to the oil and gas forum). I can't really find anything from SSN on type curve and estimates so have to use one of my others - they use a basic 603Mboe type curve (note 28 different curves depending on bench and county location) and 3 enhanced well completion designs ranging from $8.7M to $9.2M (before the current deflationary environment). So still approx $30M of Capex to complete the infill once drilling curtailment lifted.

Rainbow with 8MB & 6TF1 wells in total of which 1 has been drilled probably needs about another $40M (to SSN WI) to drill out.

Both projects would keep SSN quite busy. NA drilling has been curtailed pending recovery in oil price. I assume Rainbow is as well given news out of CLR on Capex and it sits outside of the core (as I understand the CLR picture).

When price recovery occurs the question is how does SSN participate - while the Capex pressure is lifted for the moment, how much FCF will be generated for later? The next 2 Qtrlys will be enlightening.


From CLR