cashflow

From our friends on the US forum seems like this could really be the turning Point for SSN...

with neigbours around with results like:
UPDATE 1-Brigham reports prositive results from 2 Bakken wells
Thu Apr 1, 2010 2:24pm EDTStocks
Brigham Exploration Co
BEXP.O
$17.02
+1.07+6.71%
2:26pm EDT
* Sorenson flows at initial rate of 3,511 boepd

* Jack Erickson flows at initial rate of 2,652 boepd

This should be an issue!!!

Samson's revenue currently runs about $1.4M per quarter.

Their quarterly production expense is $500K and G&A and Interest expenses are around $800K and $250K per quarter.

The $1.4M revenue combined with these $1.55M expenses show that Samson needs $150K additional quarterly revenue to reach breakeven.

Based on $60 per bbl. it would take 2,500 net bbls to Samson per quarter or 28 bbl's per day for Samson to achieve break even.

Based on recent completion results in the area I expect the Zavanna operated Gene 1-22H to IP at a rate in excess of 1,000 BOE/D, average 250 BOE/D over the initial year of production with a 8% decline thereafter and a thirty year economic life.

Samson owns a 30% GWI and 24% NRI in the Gene 1-22H and five adjacent 640 acre spacing units and is planning for the drilling of three wells on this acreage during the first half of 2010.

Based on 250 bbl/d, $60 per bbl and Samson's 24% NRI each of these wells can be projected to generate Samson $328,500 revenue per quarter.

250*$60*24%*91.25days = $328,500