Hi notrealgoodatthis, I know exactly what you mean it's not much to look at for the money, at least from the surface. However I haven't invested in SSN so TB can have a nice view, hope those bloody big tanks are getting filled!
Regarding the 70 BOPD so far for Aus II, yes you are correct a lot of small caps would be happy with that - I hold stock in another oiler and their wells are getting about 30 BOPD - but they have retained 100% of the well (less royalties), and because the wells are so cheap to drill (vertical + frac + shallow only 2,000 - 3,000 ft) they will pay for themselves very quickly, in fact under 5 months according to their last announcement.
70 BOPD for SSN is nowhere near the mark, however as others have deduced, TB probably only mentioned it to:
1) Let us know that oil is flowing, and 2) To calm down the hype of unrealistic BOPD expectations and speculation from us & other punters.
And as you said, lots of crap to clean out yet and Aus II is "not considered to be diagnostic because of the condition of the well bore (fish and plugs), the lack of a tubing string and the early stage of the flow back.
And: The oil cut was increasing with time and we expect it to continue until the well reaches its maximum potential.
SSN Price at posting:
12.5¢ Sentiment: Hold Disclosure: Held
