good post OSI" recall SSN collaborating on 3d at some point and...

good post OSI

" recall SSN collaborating on 3d at some point and would presume (ie. wildly guess) that CHK would also have been shooting 3d to allow this to happen. Performance by SSN's well's will add to the prospective value of what CHK has. "

I am not sure but I thought CHK did not nave 3-D on SSN land. At least it was not disclosed. 3-D is an expensive process and is quite valuable as a negotation tool. This made SSN viable in this area because they had the 3-D and I assume CHK got the info as part of the agreement. SSN needed drillers and equipment that CHK could provide.

"You say "SSN can survive on lower producing and shorter production wells". I can't understand why as CHK has the economies of scale. Notwithstanding some unfortunate strategic decisions (and bad market contitions) CHK are not idiots just as Terry is not some O&G god. "

CHK cost recovery is higher than SSN thus requiring a higher base stability to maintain profit. They have a larger cost recoverability than SSN. It cost money to make money. CHK spreads their cost on a very wide basis where SSN does not. I understand CHK profitability stradegy and they are very good in securing return on capital investment.

" certainly do hope SSN holds the good stuff but the differentiation could be overstated a tad. What differentiates CHK to SSN is a need for cash and a need to maintain and grow HC liquids production in the near to medium term. Being cash solid with no supply commitments to feed expenses SSN can better align development (of possibly less productive areas) to times of POO market strength if need be."

Only Terry and crew knows the value and volume expected. CHK simply wants to make the most for their capital investment. There may be some different opnion of the volume expected and what was found.

I want to make the most on my investment. So does CHK. I plan for long term investment and CHK plans for short to mid term investment stradegy on unknown investments. CHK is long term investors on higher proven finds.

Bob