the u.s. shale oil boom, page-5

Hi Acreage

The growth in rig numbers will grow as per my previous post which referred to Sclumberger's intentions.

Personally, I like some others perhaps, are taking the Niobrara for granted . . . particularly as the market still has not assigned much value to to (in the SSN share price) and becasue the expected?? sweet spot mitigate some other risks.

I was premature last year thinking that gas would rise quickly this year becasue of the steep decline rates associated with shale wells. However as many new shale reserviors also produce gas (as a secondary product) and because some larger gas plays are being drilled to secure lease units the price has not thus far advanced.

Gas will however have it's day and my guess is that it will (eventually) be a secondary leg up for SSN and peers like SEA, AZZ, BCC etc etc. WHEN?? the time comes. Demand has to rise first however. I'll probably become a gas bull again in 1012 or 2013 and take some positions in some "market worthless" gas plays next year but for now oil and condensate are the key focus.

Without pipelines, gas can be a bit of a hassle becasue it's not seemly (or in some states legal) to just flare it continuously. My guess though is that pipeline infrastructure when more fully developed though will see some very high prices realised for SSN and the other niobrara players. Until then we get a proven resource and a cash flow . . . .

T Bar: Some analysis of these issues would be great for the Quarterly IMHO as I believe the market needs some guidance in this area.

cheers