Ann: Operational Advisory, page-17

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22/07/14

13:49

Post #: 13696108
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Originally posted by strazza ↑

Relative to what it has produced over the past 2 years I would say yes. Beyond that, I'm just happy to see it producing commercial quantities of oil.

The Roosevelt is our largest acreage. Continental has producing wells along the southern boundary of our acreage, Brigham has producing wells to the east, and the Brockton Fault Zone roughly defines the north western extent of our acreage (and of the primary oil producing part of the Bakken in this part of the broader Williston Basin). Gretel was determined to have been drilled outside / across the Brockton Fault Zone, hence its poor performance.

There is no question SSNs acreage contains oil, its a question of good well design and drilling practices to unlock maximum value. This industry has been rapidly evolving over the past 5 years and is even quite different to when AUS2 and Gretel were drilled in 2012. With the positive work-over of AUS2, the immenent 3D seismic data, improved knowledge of the general region and the continual improvements in well design, I think SSNs Roosevelt acreage could still hold a lot of potential. Based on numbers for Continental's Abercrombie and Mackie I would expect production to be modest, but as long as wells can be determined commercially viable, every BOPD adds to the bottom line and ultimate share price value.

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Agree, a targeted approach (3d seismic data) should make the difference in Roosevelt County.

Oil well completion technology is improving at a rapid pace and undergoing a revolution according to Whiting's ceo,
"undergoing a revolution in well completion technology. All the wells we're drilling today are significantly better than the ones we drilled last year, and those were a lot better than the ones drilled in 2012."

SSN Price at posting: 2.2¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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