well that confirmed the presentation slides. (I was unsure if they stuffed up the no. of wells - but no.)
1. we have $76.7m from the deal within 9 trading days (confirmed)
2. we have more wells, just recently it was net 70, now we are talking 160 acre spacings and
99 @ 50% 53 @ 100%
net 102.5 wells now, nearly 50% more. this is great news.
re: the 2 year timeframe, I obviously don't think he meant all done in 2 years, as that would mean a completion of 1 net well per week from here. I think he means we will be well on the way to proving that "valuation" or NPV has some legs.
I mean, we are only drilling our first 2 within 6 months.
I have highlighted before how fast the big boys can drill these plays, the cash and cashflow will help us to speed up considerably, but we have to remember, two things, frac crews are very very tight, and pipeline capacity needs to progress very quickly in the Niobrara. It will happen, but there will be bottlenecks getting the oil to market. (perhaps why Terry used a low oil price - as in a previous oil boom, this area had the lowest prices per barrel in the US - as it was contrained to the local market)
remember we also have that 4.8% interest in a large player which based on Terrys spacings can drill up to 150 wells on that acreage in the background.
all up, a very exciting well funded future. (and for juniors this is KEY - note JPR currently)
SSN Price at posting:
6.9¢ Sentiment: LT Buy Disclosure: Held
