Could tell u a bit more then that. Wasn't until Nov 2004 when...

Could tell u a bit more then that.

Wasn't until Nov 2004 when the directors started looking at assets in the USA & retained TB's services as their Geo. Fast fwd 2009, since then the shale oil landscape have had a seismic shift in the USA with billion dollar partnerships & deals struck between new cashed up players (Statoil, Reliance, CNOOC).

SSN's claim to fame is more so b'coz it has its feet in 2 hot plays in the States, the Bakken (Nth Dakota) & the Niobrara (in Wyoming).

They r an active producer in the Bakken, with all the wells that they've drilled being active producers & we wait for 2 more 2b tested mid March onwards. I'd expect atleast 1000 boepd IP each, with SSN's avg share been ~30%.

Massive land-banking by majors Operators in WY & the successful frac by EOG at its 'Jake-2-1H' well changed the Niobrara outlook for all players including SSN.

They've retained the block since back in the day, drilled London Flats in 2006, flowed the Pierre Shale in that well at a piddly 12 bopd & left it cold.

All this changed when EOG demonstrated a flow of 50000 bbls over 90 days test period frm Jake at a low cost (US$3.4m/well).

On top of that, advancements in perf 'n plug technique of flowing a well became the game changer for all operators. This wasn't the case when SSN drilled London Flats.

So to anwer yr question, major explorers in WY have land-banked most land in Goshen County. SSN have retained the sweet spot & did a decent deal with CHK for US$76mil. THis gave them more cash on hand & buggerall debt ($10mil). Besides, their cash-burnout isn't huge.

Another deal that the mkt didnt quite get was the Halliburton deal in Feb.

So while SSN hasnt produced anything frm the Niobrara yet, they will get a royalty payment frm CHK, who have drilled their first batch of Goshen county wells last year, the flowrates havent been made public yet. But thats what the big boys do, keep results confidential.

Hope that gives u a better idea of where they've come from, purely fundamentals amidst a hot sector & no bull.

Do chkout their presentations/ roadshows etc, very easy to digest.