Comparing SSN to EOG who according to a posters article hit a well with 1558 bopd. Even if SSN's wells are 50% worse than that of EOG we are still capable of averaging 800 bopd.
The Oil & Gas Financial Journal clearly recognises SSN as one of the first in the Niobara,therefore we wern't fighting for the leftover scraps. Our land should be just as good,time will tell.
$60mill should get us around 20 new wells in the next 2yrs taking into consideration some delays.
Hypothetical figures :
800bopd x 20 wells = 16 000 bopd
16 000 x $20profit per/barel = $320 000 per/day
$320 000 x 365 days = $116 000 000 profit per/yr.
And that's with only 1/5 of our land developed.
The aim is for 105 wells.
SSN Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
