Ann: Foreman Butte Project Update, page-11

Sorry Mareed, this requires an essay (but w/o any bs).

The only thing I know for sure is what SSN has said publicly (i.e. in financial stmts and PR) and that is

1. Substantially all assets to be acquired for $41.5M
2. Foreman Butte had a carrying value of $16M + $10.8M + whatever else spent that was capitalized. Shall we round it off as $30M?
3. Recognizing a profit of $10M

Happy to call to $40M? for the FB asset?

What else have we been told?

4. End of 3rd Qtr, PV10 of PDP + PDNP + PUD = $105M AND with oil price rise worth 35% more (just mathematically speaking) so happy to call it $140M

That's a nice number until you consider that PV10 ignores both finance costs and G&A costs (we do know it was reported as $505K for G&A in Q4 and $331K for Finance in Q4). If I wanted to twist the numbers I could say that was US$836,000/49,788 BO = $16.79/BO ... unfair given the low production Qtr but that's what happens to oil wells ... they decline.

Again from SSN reporting
June 2017 PDP Reserves 3,115,000 (valued at $38.49M and much lower oil price)
less Sep Qtr oil production of 54,580 BO
less Dec Qtr oil production of 49,788 BO
approx remaining PDP = 3,010,632 (and I expect it to be lower reflected wells that became PDNP due no available capital for workover.
Means what??? Subtract G&A & Finance cost times #Barrels .... ~$50M (admittedly high). All that means is SSN isn't a profitable operator. Firehawk may have been but we'll never know.

With PUD you also need know how much capital you need to invest to monetize the in ground oil. SSN has not disclosed this information in their reserves reporting, which most US companies will do (to help their investors assess the development cost of their asset). We can of course guess as SSN say there are currently 61 PUD wells plus an additional 21 probable locations. How much for each?

It may be a cracker asset that SSN has in its hand - doesn't mean it can explode and blow their hand off.
(couldn't resist it).

Need to see real financials reported which are due soon.

Speaking of crackers ... how about the last 2 days of US trading.