ipaa ogis new york, page-29

Reconfirmation of previous guidance is news.

Tone was good. Between the words do you get a hint that SSN would be quite happy to pursue the Niobrara with HAL's EXISTING buy in only?? If this is so, it could be because the expectation of play performance on news that the oil reservoirs on SSN's acrage are nicely cooked, thus removing a key risk area AND because wells can be designed to address the excentricities of the play. This is my personal take. What Terry did sort of say was that the dry niobrara holes encountered by others were outside the fareway on which the SSN acreage is located. These results can thus be discounted.

My own view on Aus II flowback will be a pretty average . This is partly becasue TB has been previously been saying how the Gretel reservoir is a lot better .... so I'll hold to my initial guestimate of maybe 250bopd BUT maybe it will be better than this. The Aus II Gretel average may exite the market IMHO. We can but wait and see but as there are no more perf guns to get stuck, we will IMO get results on 3 wells in pretty quick order.

One error ... he said 31 April for HAL decision which sort of says it all. I am now less interested in the HAL decision than Defender EURs. Whether SSN should accept an extra HAL buy in depends on where the company wants to go and the prospectivity of alternative plays. SSN was in the right place at the right time but the market place is a tad crowded on-shore Lower 48 these days IMHO. In a few years time now worthless gas will regain value but that's for the future.

cheers