joint venture, page-2

In December of 2005 SSN did a JV with Mountain Energy LLC which now consist of 7256 net acres in the Hawk Springs project.

My questions put to Terry are as follows


1. Why did SSN originally do a JV with Mountain Energy

2. What does Mountain Energy have to offer SSN with experience, expertise and or equipment to help develop their 7256 net acres in the Hawk Springs project in 2011 considering they have a 50% WI.


3. Will the shared 50% 12 month contract with frac crews change Rodney #1-14H (27% working interest) and Earl #1-13H (32% working interest). If so by what percentage.



Terry's response

Thanks for your note, in answer to your questions:

1) The Mountain energy JV came about because the owner of ME was John Lockridge and we shared the same vision as to the prospectively of the Niobrara, they had a bunch of acres which we bought into, so essentially that deal established a start for our Niobrara activity in 2005.

2) John Lockridge is the doyen of the Niobrara he is a geologist of immense knowledge about this rock unit and probably the best industry partner that we could have. They are very supportive and cooperative.

3) The frac crew deal is just a commercial transaction with the services industry, Zavanna will effectively underwrite 50% of a frac crews work for 12 months, in exchange for that underwriting have plenty of access to their services. It will not change the ownership of the actual wells.

Thanks for your support and all the best for the holiday season.

Regards
Terry Barr


I just thought I would share this with other holders as Mountain Energy do have a 50% working interest in half of the leases with SSN in the Niobrara.