Too all the SSNers I posted some posts today after being given...

Too all the SSNers I posted some posts today after being given some questions to answer and then being attacked for providing an answer and then those poster's complaining that the SSN forum comes down on you, well why did you ask the question in the first place?

I try to make my posts as realistic as possible based on my research, I cannot guarantee you that I will be right, and if you feel I am wrong I am happy to hear arguements for and against. But I do not believe in stepping back (never in my whole career) if you are being a smart arse, I will reply in kind.

I got into the spec area in truth to make my days more exciting by trying short term trading on my client's recommendation but I have changed focus (and learnt some lessons) as I see some real opportunities to make some serious money if you are prepared to do the research and share information. I do not do this for a living but my focus is to try to find undervalued companies and wait to see if they come good. I shared a e-mail with BDR investors that I received months again from a friend who got it from his broker and they outlined their plans and they have hit each target on that list since and I have continued to invest this is my aim with SSN. If they can deliver then blue sky, but it does carry risk and I can afford to lose what I invest, I just like to state that for everybody.

This is my honest opinion at the moment on the share price drop is due to the discrepency in the actual recorded production and in particular the 23,000bbls in June 10 to the quarterly comparison to 14,000bbls - notice the drop has come a couple of days after the quarterly's. This has put the SSN production targets in doubt in investors minds. I have raised this with Robyn (CFO) and basically told her this is not good enough (I think I raised it with Dalek prior to the release from previous quarterly's but this is a big discrepancy for a company that produces 11,600bbls of oil). Now I do not see this as a LT issue - as we know over 6 months Gene has produced 59,000bbls of oil x 30.60% - 18,054 for SSN which is a good solid result in my book but doubt creates panic and off you go with the share price. The market has not factored in that Gary was late or the production potential of this well, I think SSN were hoping to have this done early September to keep production high - but we will have to wait until December to get larger production numbers. Gene should only have a smaller decline from here as July and Sep 10 only had a 300bbl difference. The delays in frac only add to the share price pressure.

What can turn it around there are a number of things in this quarter JV, Rodney, CHK, but I really think the one that has flown under the radar is the 100% owned Diamondback Well - this could change the picture if successful - I do not think many half in investors know it is on the agenda - but I will not factor this into my calculations until we know what is there - remember ripsaw.

What do I think could happen, if I put my accountant hat on and I had $200 odd million to spare I would look at buying this company, privatise it and implement strategy 2 first:

Wait for CHK to start to drill and see what they find on 23,000 acres of land - the 3.8% would be provide cost free income for a long time.
I would then sell the 17,000 Niobrara to pay for purchase costs and put a ORRI on that (similar deal)
I would keep the other assets as within the next 6 to 18 months they would all be cashflow positive.
I would look at investing the additional $100+ million (after tax etc) in other opportunities when they arose.

That is I would derisk my investment, this is with my conservative accountants hat on and let CHK do the hard work. I really believe this would look attractive at the current prices to a potential purchaser not doubt about it, you can do the sums however you like but you would buy any business on the basis that you could grow it and SSN has left a foundation to do that.

Thanks, have a good weekend