thoughts, page-4

Thoughts;

1. How are they going to pay? My thoughts are a CR maybe for 2.5c? Of so thats another 600M shares making total of around 900-1B fully diluted. Not necessarily a bad thing as SSN have 2B all up and a MC of 250M. (SSN are currently producing however)

2. 45% of 60,000 acres of potential Niabrara formation. rough valuation of say $3500/ac = $210M x 45% = $94.5M.

3. EUR per well in Niabrara of around 400,000bbls (say 350,000 depending on where in the formation they are - some parts thicker than others) assuming 640 acre spacing per well (potentially down to 160ac/well gives them 94 wells at 640ac.

4. Well costs for horiz drilling and fraccing would be in the order of $3.5 per well but the problem is going to be obtaining drill and frac crews as there availability is close to nil atm due to the big oilers booking them out for a while.

5. Further dilution possible to pay for the first few wells?? (Unsure)

6. All up - depending on the CR deal they do to pay for it all - could be worth a punt for a long term (2 years) play as this could potentially be a company maker for them.

Good luck all - will be reassessing one further info is availble....Maxi