joint venture, page-3

Thanks for clarifying with the Terry The Mountain Eenergy
Story.

Looks like somebody from the yahoo thread as also recently been in touch with Terry, its worth a read.

Phone call today Part 1 29-Nov-10 06:38 pm Had some questions concerning the last press release so called Mr. Barr. Picked up cell immediately answering "Terry Barr". It sounded like he was out tromping around on some deserted acreage somewhere with the wind whistling through his cell phone and out of breath. I said I was a share owner in the company and asked if I could take 5 minutes of his time. He said "Sure, go ahead". Summation of our conversation
1. The 12 month split to hire out the frack crew will not be anymore out of Samson's pocket. The Operator would be splitting cost with another company that they are working together on with a substantial project. It would get Rodney and Earl finished however since Zavanna has a substantial interest in those two. Wouldn't speed up the Hansen well time frame for drilling but hopefully speed up the fracking process on it.
2. Down Spacing in ND to 320 acres. No clue when will happen but will probably not be developed directly after approval since Zavanna has a substantial project that they are working on. He did say that we may be pursuing the 3 forks play before we actually start drilling from the down spacing??? I should have followed up on that but really hard to hear with the wind and him definitely checking out some property in the middle of no where.
3. Does all the seismic have to be recorded before the data is processed? No, they usually send the seismic in packages of about a week at a time and then it goes to the company who interprets the data at that time so about a 2 week lag period from the time we get data to the time it is started to be interpreted.
4. Are we going to wait on drilling our assesment well the Constellation after the seismic data has been collected or are we going to drill it now? We will wait until we get all seismic data. Better chance at that time of coordinating core samples with seismic findings. My interpretation and not Mr. Barr's is that we will probably start this process at the end of January. I should have asked him how much seismic costs but didn't. I saw where Primary Petroleum shot 3-D in about 25 miles for 1.25million in 2008. I imagine that would run them 1.5-1.75 today so I am figuring 3.5million for Samson to run their 3-D but if someone else has a more accurate figure would appreciate them sharing.
5. I said that many times he has mentioned the possibility of having a JV Partner at the end of the year. I followed up by saying that having a business sense myself, I could not understand why anyone would want to JV before the seismic has been interpreted to derisk their risks. I then said, "So I really don't see anything happening with a partner until latter part of the next quarter." He followed up that they don't have to have the 3-D because they already have an understanding of what the land is worth and that he doesn't feel that it has to be that late. He never said that it was going to happen by end of the year or when it would happen but I could tell if I was interpreting his pattern that the JV is moving along and he isn't backing down on his time line.


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Phone call today Part 1 29-Nov-10 06:38 pm Had some questions concerning the last press release so called Mr. Barr. Picked up cell immediately answering "Terry Barr". It sounded like he was out tromping around on some deserted acreage somewhere with the wind whistling through his cell phone and out of breath. I said I was a share owner in the company and asked if I could take 5 minutes of his time. He said "Sure, go ahead". Summation of our conversation
1. The 12 month split to hire out the frack crew will not be anymore out of Samson's pocket. The Operator would be splitting cost with another company that they are working together on with a substantial project. It would get Rodney and Earl finished however since Zavanna has a substantial interest in those two. Wouldn't speed up the Hansen well time frame for drilling but hopefully speed up the fracking process on it.
2. Down Spacing in ND to 320 acres. No clue when will happen but will probably not be developed directly after approval since Zavanna has a substantial project that they are working on. He did say that we may be pursuing the 3 forks play before we actually start drilling from the down spacing??? I should have followed up on that but really hard to hear with the wind and him definitely checking out some property in the middle of no where.
3. Does all the seismic have to be recorded before the data is processed? No, they usually send the seismic in packages of about a week at a time and then it goes to the company who interprets the data at that time so about a 2 week lag period from the time we get data to the time it is started to be interpreted.
4. Are we going to wait on drilling our assesment well the Constellation after the seismic data has been collected or are we going to drill it now? We will wait until we get all seismic data. Better chance at that time of coordinating core samples with seismic findings. My interpretation and not Mr. Barr's is that we will probably start this process at the end of January. I should have asked him how much seismic costs but didn't. I saw where Primary Petroleum shot 3-D in about 25 miles for 1.25million in 2008. I imagine that would run them 1.5-1.75 today so I am figuring 3.5million for Samson to run their 3-D but if someone else has a more accurate figure would appreciate them sharing.
5. I said that many times he has mentioned the possibility of having a JV Partner at the end of the year. I followed up by saying that having a business sense myself, I could not understand why anyone would want to JV before the seismic has been interpreted to derisk their risks. I then said, "So I really don't see anything happening with a partner until latter part of the next quarter." He followed up that they don't have to have the 3-D because they already have an understanding of what the land is worth and that he doesn't feel that it has to be that late. He never said that it was going to happen by end of the year or when it would happen but I could tell if I was interpreting his pattern that the JV is moving along and he isn't backing down on his time line.


Sentiment : Strong Buy
Rating :