Just wanted to bring to light what I believe is no surprise announcement at all - State GC was slated in the recent presentation (Ann 23/02/2010 - pp 23) that "State GC#2 re-completion in Bone Springs (Shallower zone) - end January" There have been comments of "left field" and "unexpected" but in fact if people just simply read the announcements carefully, the information is all there.
Although it is now march this well has in fact been on the company radar to be reworked for some time - its just that everyone has been so focused on Gene and Ripsaw that this has been overlooked. I have been looking into this area for recovery rates and at 37% interest this could be a nice little kick along. If we get anywhere near the production of the older well quoted 2.5 miles to the north-east of GC#2 then this could mean around 18bopd to SSN. (52805bbls over 3years = 48bopd with SSN @ 37%). Whilst not big but certainly another step in the right direction.
The well originally spudded Feb 16 2008 (ann 18/02/2008) with SSN at 27% equity until 13th march 2008 when one of the parters sold down giving SSN an extra 10%
I found some information on Bone Spring Formation from here http://aapgbull.geoscienceworld.org/cgi/content/abstract/81/9/1423 please feel free to discover for yourself but this is the extract:
"Sandstones of the Bone Spring formation (Leonardian) with significant potential in the northern portion of the Delaware basin include the Avalon sandstone and third Bone Spring sandstone intervals. The Avalon sandstone is a very fine to fine-grained submarine-fan deposit, 10-18 m thick, distributed across parts of southern Eddy and southwestern Lea counties, New Mexico. The Avalon consists of a series of individual sandstone zones separated by carbonaceous and shaly siltstones. The sandstone zones display moderate porosities (7-17%) and low permeabilities (0.5-7.2 md) and require artificial stimulation to produce. Net pay is commonly 4-8 m. Reserves per well seldom exceed 100,000 bbl, and the Avalon interval is considered a secondary reservoir. The third Bone Spring sandstone is widely distributed across the northern Delaware basin and is especially prospective within the deeper basinal area to the east. In contrast to the Avalon sandstone, which was sourced from the north and northwest, submarine-fan systems of the third Bone Spring sandstone were supplied from the northeast and east, with detritus derived from the Central Basin platform (CBP). Productive sandstone zones are very fine grained channel and levee/overbank facies, with porosities of 7-18% and permeabilities of 2.0 md or less. Well productivity is significantly enhanced by overpressure, which affects the lower portion of the Bone Spring formation and underlying Permian, Pennsylvanian, and Mississippian units. Wells in Red Hills and War-Wink fields, productive from the third Bone Spring sandstone, have yielded oil at rates of 700 bbl/day or more and required mud weights of over 12 lb/gal at depths of 3446 m. Estimated ultimate reserves for these wells are 300,000-375,000 bbl. The minimum prospective area is 64 X 16 km, lying between Red Hills and War-Wink fields on the west and the CBP on the east. Mapping of channel sandstone fairways should be possible through a combination of existing log data and three-dimensional seismic surveying."
Certainly some promising ground especially if near the optimistic quoted of 700bopd (or even 10% of that!)
Looking forward to monday as it must be saturday night given all the arguements going on! Monday will happen and whether or not people on here have alterior motives or not it won't change what happens on monday! Dow up - ASX futures up - positive end to the week for SSN all bodes well for a positive start to next week.
As for prices - well, i bought in at 2.5c so everytihng that happens upwards of here is a good thing imo. I'm not sure what this workover is worth. I've had one too many scotches to try to figure it out or even hazard a guess but the point of the post was to say that this has been on the agenda for a while - not just a left field "what about this?"
Have a good weekend everyone and look forward to next week - it may just be a cracker!!!!!!!
Maxi....
SSN Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
